<PAGE>
EXHIBIT 99.1
[TERAGLOBAL COMMUNICATIONS LETTERHEAD]
For Immediate Release
TERAGLOBAL COMMUNICATIONS COMPLETES PRIVATE PLACEMENT
--RAISES $7.3 MILLION IN STOCK SALE,
POTENTIAL FOR ADDITIONAL $5.3 MILLION IN WARRANTS--
San Diego, California, June 23, 2000. TeraGlobal Communications Corp.
(NasdaqNM:TGCC) today announced that it has completed a private placement of
its common stock with a group of European institutional investors.
"The majority of the proceeds will be used to accelerate market
penetration of our new TeraMedia 2.0 product," said David Fann, Chief
Executive Officer. "This funding allows us to enhance our sales and marketing
efforts in core target markets and to continue to explore additional
strategic options for leveraging our proprietary UCCA communications
technology."
Under terms of the private placement, the company issued approximately
2.7 million shares of common stock for $7.3 million, raising the total
outstanding shares to 22.7 million. In addition, the company issued warrants
to purchase an additional 1.3 million common stock shares with an approximate
total value of $5.3 million, if exercised.
TeraGlobal Communications Corp. is a communications technology company. The
company has developed a next generation network -- the Unified Computing and
Communications Architecture -- that combines data with traditional communication
networks, such as the telephone and video collaboration, over a single network.
TeraGlobal's TeraMedia-TM- software-based solution guarantees real-time, two-way
simultaneous voice, video and data-based communication and collaboration over a
single high-speed network saving customers time and money, enhancing workflow
efficiency and personal productivity.
STATEMENTS MADE IN THIS NEWS RELEASE ARE FORWARD-LOOKING AND INVOLVE RISKS
AND UNCERTAINTIES. THE COMPANY'S ACTUAL RESULTS COULD DIFFER MATERIALLY FROM
THOSE PROJECTED IN SUCH FORWARD LOOKING STATEMENTS AND WILL DEPEND UPON A
NUMBER OF FACTORS, INCLUDING, BUT NOT LIMITED TO, INVESTORS' ABILITY TO
COMPLETE PROPOSED PRIVATE PLACEMENT TRANSACTIONS, MARKET ACCEPTANCE OF THE
COMPANY'S PRODUCTS, AND THOSE DISCUSSED IN PRIOR SEC FILINGS, PRESS RELEASES
AND OTHER PUBLIC FILINGS OF THE COMPANY.
Contacts: TeraGlobal Corporate Relations Pondel/Wilkinson Group
Bert Creighton (Media) Investor Relations
Darren Seed (investors) E.E. Wang
[email protected] [email protected]
(858) 404-5500 (310) 207-9300
www.teraglobal.com www.pondel.com
