Endeca Announces Mezzanine Financing; New Investment Complements Significant Market Traction,...

Business Editors/High-Tech Writers

CAMBRIDGE, Mass. & LONDON--(BUSINESS WIRE)--June 14, 2004

Endeca, the leading provider of enterprise search and Guided Navigation (SM)solutions for the enterprise, announced today the completion of an oversubscribed $15 million mezzanine

financing round. The round, co-led by Lehman Brothers and Granite Global Ventures, along with returning investors Ampersand Ventures, Bessemer Venture Partners, Venrock Associates and DN Capital will be used to accelerate the company's growth in new geographical and select vertical markets; and to expand and enhance Endeca's product and service offerings. Total funding to date is $45 million.

Today's announcement follows Endeca's most successful quarter to date and exceptional results in 2003 (http://endeca.com/about/press/p_012004.shtml). During the past two quarters, Endeca has signed dozens of new customers, including major wins and competitive displacements at leading financial services, retail, business-to-business, manufacturing, information publishing and government organizations. Endeca's customers include Fortune 500 and Global 2000 businesses like IBM, Barnes & Noble, Tesco, Littlewoods, Lastminute.com, Quick & Reilly (an affiliate of Bank of America) and Arrow Electronics, as well as government organizations such as the Library of Congress, the US Army and In-Q-Tel (the technology arm of the CIA).

Other tangible demonstrations of Endeca's continued momentum include:

-- Increased worldwide staff by 50 percent since January 2004

-- "Visionary" status in the 2004 Gartner Enterprise Search Magic

Quadrant(TM)

-- Hitting the 'bulls-eye' in the Patricia Seybold Group report

on "Product Search Solutions"

"New investments from respected firms like Lehman Brothers and Granite Global is a testament to our success and a validation of our strategy for the future," said Steve Papa, chairman and CEO of Endeca. "With their strong global reach - and influence in key Asian markets - these new investors will be valuable partners as Endeca continues its rapid growth in the Americas and Europe, while aggressively pursuing new opportunities in the Asia Pacific region."

Joining Endeca's board of directors is Hany Nada, co-founder of Granite Global Ventures. Prior to Granite Global Ventures, Hany was a highly respected software industry analyst with US Bancorp Piper Jaffray and earned numerous accolades, including being named an "All-Star" analyst by The Wall Street Journal.