TEL AVIV, Israel, May 13 /PRNewswire/ --

- Top-Tier Investors Rho Ventures, Genesis Partners, Cedar Fund and
Others Demonstrate Confidence in Celtro and its Performance in the Burgeoning
Mobile Backhaul Market

Celtro, a pioneer and leading global supplier of creative switching
solutions for the mobile backhaul network, today announced the successful
completion of a US $20 million financing round that will capitalize the
company to profitability. The round was led by Rho Ventures, with the
participation of existing investors Genesis Partners and Cedar Fund. The
company will invest the proceeds to further expand international operations
and to penetrate new markets.

This funding round demonstrates continuing confidence in the
Celtro's accomplishments in the fast growing mobile backhaul network market.

"We are delighted to have raised such a significant round of
funding, and are encouraged by our investors' confidence in what has become
one of the most important mobile infrastructure playing fields - the backhaul
network," said Ron Zor, Chairman and CEO of Celtro. "We are especially
pleased to welcome Rho Ventures as an investor, whose history of long-term
investments and wealth of knowledge in the communications sector will add
real value to our business," he continued.

"We have followed the Celtro story for three years. The
management team has delivered exceptional performance year after year, and
leveraged its innovative technology platform into meaningful traction with
some of the world's leading mobile operators," said Ben Terk, partner with
Rho Ventures.

In conjunction with the financing, Ben Terk will be joining
the Celtro Board of Directors. Mr. Terk currently serves on the boards of
Alien Technology, IdenTrust, Gearworks, PHT and Solicore.

About Celtro

Celtro provides creative mobile backhaul switching solutions
that improve service delivery, increase network efficiency, and facilitate
smooth backhaul network evolution - helping providers enhance revenues,
improve customer satisfaction, lower operational costs and optimize their
backhaul network assets. Already adopted by top-tier providers worldwide,
Celtro's solutions focus solely on the cellular backhaul.

Celtro has commercially deployed its backhaul switching
products in the mobile networks of more than 50 leading operators, servicing
more than 350 million subscribers in Europe, Africa and Latin America. For
more information see http://www.celtro.com.

About Rho Ventures

Rho Ventures, a division of Rho Capital Partners, has been backing
emerging and high growth companies primarily in the U.S. since its inception 
in 1981. Venture capital and growth equity funds under management currently 
exceed US $1.7 billion. Rho Ventures has invested in approximately 200 
companies and helped build market leaders across many high growth industries. 
The firm is currently investing Rho Ventures V, a US $425MM fund launched in 
2005. Previous investments include Ciena Corporation, Compaq Computer 
(currently part of Hewlett Packard), Diversa, Human Genome Sciences, iVillage 
(currently part of NBC Universal), Leukosite (currently part of Millenium 
Pharmaceuticals), MedImmune, Senomyx, Silicon Graphics, Vanda 
Pharmaceuticals, Vicuron and Yantra (currently part of Sterling Commerce). 
For additional information, please visit http://www.rho.com.

Contact:
    Sarah Rhodes/Nicola Smart
    AxiCom
    +44(0)20-8392-4050
    celtro@axicom.com

    Debbie Lanyi
    Director, Corporate Communications
    Celtro Ltd.
    +972-3-9206521
    debbie.lanyi@celtro.com