Elliptic Semiconductor Closes Seed Financing Round - Total Rises to C$750,000 with Axis Investment Fund Participation

21 November, 2002 – Ottawa, Canada. Elliptic Semiconductor, an early stage company in Wireless Local Area Network (WLAN) semiconductor products, announced today it has closed its seed financing round. The closing date was extended to allow Axis Investment Fund Inc. and certain other angel investors to participate and this pushed the round up to CDN $750,000. The financing will fund the development of Elliptic’s first product – a complete networking and security solution for low power, hand-held applications.

“We are pleased to support Ellliptic Semiconductor” stated Dr. Kevin Goheen of Axis Capital Corporation. “Axis was impressed with the past experience of the management team and believe that the company’s focus on low power, data oriented semiconductor intellectual property shows tremendous promise.”

Gord Harling, President and CEO of Elliptic Semiconductor added, “We are delighted that two prominent early stage venture capital firms have joined to build this seed funding round. The company has also received the support of eight highly prominent angels from Ottawa and San Jose, California indicating that there is strong belief in the potential for the Elliptic business plan.”

About Axis Capital Corporation
Axis Capital Corporation (www.axisfunds.com) is a hands-on venture capital management firm focused on early stage technology companies. In 2002 after successfully managing a private fund, Axis Capital launched Axis Investment Fund, a labour-sponsored investment fund that invests in Ontario-based emerging software and wireless companies. Axis Investment Fund offers Ontario residents the opportunity to participate in venture capital and receive a 35 per cent tax credit. Talvest Fund Management, a mutual fund company and a strategic partner, provides administration and marketing support.

About Venture Coaches
Venture Coaches is a seed and early-stage venture capital firm committed to building the next wave of communications and information technology companies. The Partners have extensive operational knowledge and experience to mentor portfolio companies in technology development, corporate governance and business development. Portfolio companies include Meriton Networks, Spotwave Wireless, DragonWave, TrueContext, Chantry Networks and Seaway Networks. Venture Coaches is headquartered in Ottawa, with investments across Canada. For more information, visit www.venturecoaches.com.

About Elliptic Semiconductor
Headquartered in Ottawa, Elliptic Semiconductor Inc (www.ellipticsemi.com) provides semiconductor products for low power designs of packet offload and security processing for wireless and handheld devices. The products offload the host processor and greatly reduce the power required for data transmission in 802.11, Bluetooth, W-CDMA, CDMA-2000, EDGE and many other wireless data services. Working in the most advanced semiconductor processes, Elliptic Semiconductor will become the leading player in the emerging semiconductor intellectual property market.