New Funding to Drive Cloverleaf's Growth Through Significant Expansion
of Sales, Marketing and Business Development Activities

SOUTHBOROUGH, MASS. June 28, 2005 - Cloverleaf Communications, the first company to deliver Quality of Service (QoS) for heterogeneous storage networks, today announced the successful completion of $11 million in Series C funding.  The Series C round was led by new investor Hyperion Israel Venture Partners with full participation by existing major investors including Bank of America, Genesis, and Elta Systems.  This financing round marks a combined total of $25 million invested in Cloverleaf since it's inception in 2001.

In the past year, Cloverleaf has experienced tremendous interest from end-users, partners and top-tier system integrators in Cloverleaf's Intelligent Storage Networking( (iSN() system.  In response, the majority of the Series C funds will be used on sales, marketing and business development efforts in order to increase Cloverleaf's presence, and subsequently accelerate the company's growth in the storage networking marketplace worldwide.  Cloverleaf has already taken significant steps in this direction with the addition of key sales and marketing personnel including Richard Bauer, President and Bob Wilson, Vice President, Sales, The Americas.

"It was very important to Cloverleaf's founders that the company avoid industry hype and focus on developing a sound, tested product first and foremost before stimulating end-user and channel interest," said Avi Weiss, CEO of Cloverleaf.  "We've put most of our resources up to now into significant and focused product development, which has paid off substantially with our ability to deliver a comprehensive, tested system in much less time and using far less money than most other start-ups.  In the past year we've shifted our focus on putting together a solid foundation to support our indirect go-to-market strategy.  Our technology origins combined with sound management efficiency and talent, have given us a real advantage in the marketplace."

Weiss continued, "IT executives today are under serious budget constraints but must still manage growth effectively and efficiently.  They are in desperate need for more data services to support their business processes.  Our iSN uniquely and distinctly introduces true intelligence at the network level.  No other storage networking vendor has the ability to offer end-users such robust services, focused on their most important business processes, in a single comprehensive system.  QoS and real heterogeneity across the entire storage network is a natural evolution, and Cloverleaf's iSN allows data centers to take their storage networking infrastructure to this next level."

"Hyperion is always looking for opportunities to partner with companies that offer both distinctive technology and product differentiation and a strong management team that have the potential to become industry leaders in their market segment," said Charles Ben Chabat, Managing Director of Hyperion Israel Venture Partners.  "Cloverleaf fits this model extremely well, they've really focused in on delivering what customers are looking for moving forward, a single solution that simplifies their increasingly cumbersome environments.  We are very enthusiastic about Cloverleaf's future and believe customers will quickly learn and appreciate the iSN's value."

Bernard De Backer, Vice President at BancBoston Capital, a division of  Bank of America commented, "Cloverleaf has done an excellent job delivering on their goal to build a unique system that has the ability to add significant business value to data centers globally.  The company's veteran management team is now very focused on executing an aggressive sales and marketing strategy, and we believe that they have the potential to really influence the future direction of the storage networking industry.  Cloverleaf finds itself uniquely positioned to meet the needs of end users as they struggle to scale and provide more data services while eliminating costs.  The market is ready for a system like Cloverleaf's iSN, and the company's accelerated market expansion is well-timed, matching growing industry need and interest."

About Cloverleaf Communications Inc.

Cloverleaf provides an Intelligent Storage Networking (iSN) system, based on proven technology, offering a complete set of fabric-based software services oriented to business processes that can be implemented in modules or all at once.  Unlike other industry offerings, the Cloverleaf system is scalable and non-disruptive to deploy and is the only system available that is technology and vendor agnostic across all services.  The iSN enables IT organizations to be more responsive to the business through operational flexibility and efficiency, creating Quality of Service (QoS) offerings that can be implemented over time to meet or exceed all SLA's.

Founded in 2001, privately-held Cloverleaf is headquartered in Southborough, Mass. with a technology development office in Israel.  The company delivers its product to customers both direct and through an elite channel of system integration partners located in North America and Europe.  For more information visit www.cllf.com or call (+1)508-624-9500.