Press Release

KeyEye Communications Moves to New Location

New Office Provides Additional Space for Expanding IC Maker

SACRAMENTO, Calif. – January 5, 2005 – KeyEye Communications, Inc., a leader in 10 gigabit-per-second (10 Gbps) copper-media transceivers, announced today that the company has moved to a new Sacramento location to accommodate its rapidly expanding team. The larger facility will allow the quickly growing fabless semiconductor company to support a new family of high-performance, low-cost, multi-gigabit transceivers. These devices are required to meet the networking industry's ever-increasing demand for faster transaction rates and quicker response times.

"We filled our previous offices with our growing team of engineers dedicated to product development," said Harvey Scull, KeyEye president and CEO. "Our new facility allows us to comfortably add needed employees as we approach a series of new product introductions." The new facility will also have a sophisticated lab to characterize these products in a setting that will be identical to the customer's application environment.

Since the company's inception in November 2001, KeyEye has raised $21 million in venture funding. Over the same period the number of personnel has increased from the two employees who launched the company to approximately 35 employees on board today.

The new office is located at 9785 Goethe Road, Sacramento, California 95827, Tel: (916) 231-4000, Fax: (916) 231-4001. For more information, visit www.keyeye.net.

About KeyEye Communications

KeyEye Communications is a fabless semiconductor company that designs, develops, and markets high-performance multi-gigabit transceivers for interconnections between and within networking, computing, and storage equipment. KeyEye's family of single-chip 10 Gbps transceivers, based on the company's groundbreaking EchoWave technology, enables the lowest-cost communication solutions using existing data center infrastructure. Founded in 2001 and based in Sacramento, California, KeyEye is privately held and venture-funded by American River Ventures, Blueprint Ventures, Menlo Ventures, and Technology Funding.

KeyEye and EchoWave are trademarks of KeyEye Communications, Inc. All other trademarks are property of their respective owners.

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