The Swedish start-up Gatespace announced today that it has received $ 11 million in a first round of financing. The group of European and US investors includes: Morgan Stanley Dean Witter, Fuqua Venture Partners, European Equity Partners, Pythagoras Participations, Investment AB Bure and T-bolaget. The new funds enable rapid expansion of Gatespace's development of products for services gateways for intelligent residential, automotive and industrial applications.

Gatespace develops software platforms for the rapidly growing market for network-based services for residential, automotive and industrial applications. The company was founded in 1999 by Ericsson and the Swedish incubation company CR&T. The company recently launched the first products compatible with the OSGi open industry standard. Gatespace is a leading player in OSGi, together with companies such as Ericsson, Sun and IBM.

"This financing allows us to accelerate our product development considerably, at the same time as we are now establishing marketing, sales and support organizations in both Europe and the US," says Staffan Truvé, founder and CEO of Gatespace. "The market for network based services will grow rapidly over the next few years, and we now have both the technical and the financial strength to take a leading position in software solutions in this field."

Gatespace focuses on software platforms for services gateways. A services gateway creates opportunities for different equipment in the home, car or in industrial applications to communicate with each other and be contacted over the Internet. The services gateway functions both as a switch / router, and as a server that executes various services. In practice, the product creates the opportunity to control the different functions in the home by mobile telephone or a remote computer, at the same time as enabling totally new intelligent solutions such as monitoring services and consumer-oriented online services.

"The kind of infrastructure that Gatespace develops is central if the new economy is to have a total breakthrough," says Björn Boldt-Christmas, responsible for IT investments at Investment AB Bure. "We are therefore convinced that this will turn into a successful investment."

"The founders of Gatespace, CR&T & Ericsson, have succeeded in building an outstanding team to implement a challenging agenda: become a key-player in the development of the emerging Open Service Gateway marketplace. Pythagoras is looking forward to actively play its role as an investor and catalyst to this ambitious venture." says Stefaan Top, partner with Pythagoras Participations.

In May, Gatespace signed an agreement with Sun Microsystems regarding joint development and marketing of OSGi products. Gatespace intends to license Java platform and JES products from Sun, and Sun will license OSGi based services and vertical solutions from Gatespace.

For further information and picture material contact CEO Staffan Truvé, truve@gatespace.com, Tel: +46 (0)70-59 33 885

More information about Gatespace can be found at www.gatespace.com


About Gatespace
Gatespace develops enabling technology for Ubiquitous Services - network based services for residential, automotive and industrial applications. Focused on development tools, software platforms and management systems, Gatespace works with leading hardware and software providers to provide complete solutions for network operators, services providers, and third party developers. More information about Gatespace can be found at www.gatespace.com.

Sun, Sun Microsystems, Java, Java Embedded Server and The Network is the Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.

Gatespace and Ubiquitous Services are trademarks or registered trademarks of Gatespace AB.
More information about Gatespace can be found at www.gatespace.com