Clarent Corp. –

REDWOOD CITY, Calif. – Clarent Corp., an Internet protocol telephony systems provider, went public July 1, offering 4 million shares at $15 each. The company’s stock priced at the high end of its $13 to $15 filing range.

Credit Suisse First Boston, BancBoston Robertson Stephens, Thomas Weisel Partners L.L.C. and U.S. Bancorp Piper Jaffray underwrote the initial public offering, which left 26.3 million shares outstanding.

WK Technology Funds, The Goldman Sachs Group Inc. and Intel Corp. provided Clarent’s venture backing. There were no selling shareholders.

Clarent’s Internet protocol telephony systems permit the simultaneous transmission of voice, fax and data over the Internet and similar networks. Service providers that use the Clarent system can deliver voice quality that is indistinguishable from a traditional system. The company’s system also features a modular architecture that permits customers to quickly add new services and products.

The company intends to use the net proceeds of $54.7 million for additional working capital and other general corporate purposes. Clarent has not been profitable since its inception in 1996, losing $5.8 million in 1998 and $2.1 million in 1997.

Wen Chang Ko, chairman of the WK Technology Funds, joined Clarent’ss board of directors in June 1997, followed in July 1998 by Syaru Shirley Lin, executive director in the principal investment area at Goldman Sachs.

Clarent – Selected Financial

(in thousands, except per share data)

July 2, 1996 (inception) Year Ended December 31, Three Months Ended March 31,

to December 31, 1996 1997 1998 1998 1999

Revenue – 2,170 7,994 1,616 3,433

Net income (loss) -276 -2,059 -5,832 -324 -5,495

Net income (loss) per share – -2.14 -1.65 -0.14 -1