Xobee Networks, Inc. (“Xobee” or the “Company”) (www.xobee.com), a leading full-service managed IT and cloud services provider and a portfolio company of O2 Investment Partners (www.o2investment.com), announced today that it has partnered with Telco Business Solutions (“Telco”) (www.telcobusinesssolutions.com).

Headquartered in Monterey, California, Telco is a trusted provider of VoIP, managed IT, and low-voltage infrastructure solutions serving small and mid-sized businesses across California’s Central Coast —including Santa Cruz, Monterey, Salinas, and South San Jose — with select clients as far as San Diego and Wyoming.

Eric Rawn, Founder of Xobee, commented, “We’re excited to welcome the Telco team to the Xobee family. Stephen has built a strong business with deep customer relationships and a commitment to service excellence. Telco’s footprint and capabilities align well with our platform and will allow us to further strengthen our presence across the Bay Area and Central Coast.”

Stephen Jones, Founder of Telco Business Solutions, added, “Partnering with Xobee is a natural fit for our team and our customers. We share the same values and approach to client care, and I’m confident this partnership will enable Telco’s next chapter of growth while maintaining the quality and responsiveness our customers have come to expect.”

Sam Wegenke of O2 Investment Partners commented, “The Telco partnership marks Xobee’s third investment this year and represents another step forward in building a leading managed IT provider. Telco’s strong business fundamentals complement Xobee well and provide further penetration in key geographic areas. We are excited about our current trajectory and look forward to continuing the momentum.”

About Xobee Networks

Founded in 1996, Xobee Networks is a premier managed service provider offering a full-suite of technology products and services for small- and medium-sized enterprises. The Company serves more than 5,500 customers in California, Illinois, and Washington. Xobee offers computer network support, web design, application programming and other technology services. Headquartered in Fresno, California, the Company has approximately one hundred employees. Additional information is available at: www.xobee.com.

About Telco Business Solutions

Founded over 20 years ago, Telco Business Solutions delivers managed VoIP, IT services, and low-voltage infrastructure solutions to businesses throughout California’s Central Coast. The Company has built a strong reputation for reliability, technical expertise, and responsive support, serving clients across a broad range of industries. Additional information is available at: www.telcobusinesssolutions.com.

About O2 Investment Partners

O2 Investment Partners is a Midwestern based private equity firm that seeks to acquire majority interests in lower middle market B2B services, technology, and select industrial companies. The firm invests in businesses with earnings growth potential and a clear path to the creation of shareholder value. O2 invests with a view toward partnering with management to build and grow the business and take it to its next stage of development. This requires not only a clear vision and strategic plan to create shareholder value, but a close partnership and alignment of interest with management. Additional information is available at: www.o2investment.com.

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The Telco partnership marks Xobee’s third investment this year and represents another step forward in building a leading managed IT provider.