Castek Secures $22.8 Million -US- Series C Financing; Leading Technology Company Receives Strong...

Business Editors/High-Tech Writers

TORONTO--(BUSINESS WIRE)--July 22, 2002

Castek Inc. today announced a third round of external equity funding valued at $22.8 million (US), the largest private placement in the company's 12-year history and a significant endorsement of its approach

Technology Crossover Ventures (TCV), of Palo Alto, California, is the lead investor in this round and Henry Feinberg, a venture partner at TCV, will assume a seat on the Castek board of directors. This financing round also includes Netherlands-based p3 Technology Partners and Covington Capital's TRIAX Fund. Castek will issue 14.8 million Class C Preferred Shares as part of the agreement.

In June, 2001, Castek announced $10 million Series B equity funding, led by p3, with the participation of CIBC World Markets and Altamira Management Ltd.

"We're very pleased to welcome a marquee investor of TCV's stature to Castek," said Yung Wu, Castek's CEO. "This level of capitalization underscores our commitment to the property/casualty market and to our customers. It allows us to advance the leadership position of our flagship product Insure3 Policy (pronounced insure-cubed), it shortens our timeframe for the next release of Insure3 Claims, and the addition of new products, such as insurance billing, to the Insure3 product suite. Most importantly, it rewards customers who are working with us to help bring advanced systems to market quickly."

Over the past 12 months, Castek has grown its enterprise value by 75%, following its previous financing round in 2001. Since 1999, the company has maintained a greater than 50 percent annual growth rate. This round of financing marks the second time that new external investors have recognized Castek's vision and track record against a backdrop of challenging times in the capital markets.

"Castek has effectively articulated its corporate vision, established its strategic plan, executed on its commitments, and earned the trust of its customers," said Rick Kimball, founding general partner of TCV. "As a result, the company has attained rapid market influence and penetration -- and provided its customers better ways to create and modify insurance products, apply investments toward business goals and scale their core processing systems. This is more than a financial commitment, it is also a strong endorsement of Castek's outstanding team."

About Castek

Castek Inc. specializes in the creation of strategic business software for P&C insurance. Founded in 1990, Castek is recognized for its advanced, flexible, core-business processing systems. For more information, please visit www.castek.com.

About TCV

TCV is a leading provider of growth capital to technology companies, providing funds to expansion, late-stage private, and public companies -- and managing a technology focused public equity vehicle. Founded in 1995, with more than $2.5 billion under management, the firm has twelve partners and is headquartered in Palo Alto, California.