firstRain Closes $11 Million Series A Funding Round; Industry Veteran Steven Walske Joins As...

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 15, 2001

firstRain(TM), Inc., the leading provider of standards-based software products that enable the timely access, monitoring and delivery of information from the Internet and corporate Intranets, announced today that it has

The Company had been seeking $8 million in funds to fuel its next stage of growth. It is intended that the funding will be used to further the development of its software technology and to bring its first products to market starting this fall.

Allegra Partners and Diamondhead Ventures are leading this first round of institutional investment for firstRain, which also includes investment from St. Paul Venture Capital and Myriad Investments. Previously, the company had raised $2.3M in seed investment for the development of its core technology from individual investors that includes Rajat Gupta, CEO of McKinsey and Company, John Hennessy, President of Stanford University, and Greg Papadopoulos, Chief Technology Officer of Sun Microsystems (NASDAQ: SUNW).

"We were impressed by the depth of technical talent at firstRain and the broad capability of the technology," said Richard W. Smith, Managing Director with Allegra Partners in New York. "The fact that they were able to attract a greater funding level than originally sought demonstrates that firstRain represents a strong investment. Their location in the heart of New York City positions them to tap the significant talent and prospect base of this resurgent city." According to Raman Khanna, Managing Director with Diamondhead Ventures, "firstRain has the potential to dramatically change the way people use the growing array of information and services available via the Web".

firstRain also announced that industry veteran, Steven C. Walske, has joined firstRain as its Chairman. Mr. Walske led Parametric Technology Corporation (NASDAQ: PMTC) as the Chief Executive Officer from a 1986 to 2000. Under Steve's guidance, Parametric, a supplier of mechanical design and manufacturing software, established itself as one of the largest software-only companies in the world with revenues in excess of $1 billion. He guided the company from its start-up phase through its initial public offering in December 1989 to its position as market leader in mechanical design automation software.

According to Mr. Walske, "firstRain has all of the elements needed for great success. Its technology has the potential to revolutionize the way people think about the Web and the way it is used to empower both businesses and individuals."

Mr. Walske will lead a Board that also includes:

-- Mr. Raman Khanna, a Managing Director at Diamondhead Ventures and former CIO
of Stanford University

-- Mr. Richard Smith, a Managing Director at Allegra Partners

-- Ms. Jennifer Smith, a General Partner at Myriad Investments and former
software analyst with Robertson, Stephens & Co.

-- Mr. Gaurav Rewari, Founder and CEO of firstRain

-- Mr. Jaswinder Pal Singh, Founder and Chief Technology Officer of firstRain

In addition, Mr. Jim Simons will participate with the Board as an observer for St. Paul Venture Capital.

"We are very pleased to have attracted the high caliber of investors represented by these venture capital firms," said Gaurav Rewari, CEO of firstRain. "This has to be one of the most difficult climates for raising funds that our industry has seen in a long time. We appreciate our investors' vote of confidence and look forward to their assistance as we realize the significant business opportunity for our technology."

firstRain is headquartered in New York City with development centers in New York and India. firstRain plans to grow its employee base by about 100 percent in the next year as it accelerates product development and launches its first products.

About firstRain

firstRain develops, markets and sells a family of Instant Awareness software products which deliver timely insight into important information or events for all those who need to know and take action. Its products dramatically improve enterprise decision support by flexibly integrating and monitoring a wide variety of information, applications and business events from the Internet and corporate Intranets through a single, easy to use paradigm. Its products are used to create mobile information and application solutions, "portlets" that can be used to develop user-centric dashboards, and XML adapters for Web-based resources. Its solutions deliver value to customers by improving their ability to react to new opportunities and enabling faster, better-informed decisions. firstRain is a private, venture-backed company with headquarters in New York City. For more information on firstRain products and services, please visit firstRain at www.firstRain.com.

About Allegra Partners

Allegra Partners is a lead investor in technology-driven telecommunications and software companies in the Northeast U.S., with a particular focus on the NYC Metro area. Allegra Partners leverages its 20+ years of venture investing experience, extensive network of Operating Partners, and low ratio of Partners to investments to bring value to its portfolio companies. More information about Allegra Partners can be found at www.allegrapartners.com.

About Diamondhead Ventures

Diamondhead Ventures (DhVen) focuses on early-stage Internet infrastructure and enterprise software investments spinning out of corporations and leading research universities. Diamondhead Ventures, which manages $140 million in committed capital, actively engages with portfolio companies using a hands-on consultative approach to support all areas of business operations. For more information, visit www.dhven.com.

About Myriad Investments

Myriad Investments was formed in 2000 as a fund focusing exclusively on early stage software companies. The principals of Myriad Investments bring a wealth of experience in software, Internet, investment banking, and venture capital. The business model for engagement is close participation with management, and investing jointly with traditional venture capital firms.

About St. Paul Venture Capital

St. Paul Venture Capital is one of the largest early-stage venture capital funds in the United States with $3.0 billion in committed capital and offices in Minneapolis, Boston and Silicon Valley. The firm, founded in 1988, invests primarily in the areas of Communications, Business Applications and Services, Business Internet, Consumer Technology and Health Care. For more information, visit the firm's website at www.stpaulvc.com.

The statements contained in this release which are not historical facts, such as those concerning future plans or objectives relating to the use of proceeds from the financing, the Company's growth rate, the products or services to be offered, the timing associated with such offerings and the performance of such new products and services, are forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially from those set forth in the forward-looking statements. Among the factors that could cause actual future results to differ materially are competitive pressures, risks associated with the Wireless Data Market, dependence on the Internet, risks associated with new versions and new products and risks associated with rapid technological change, the availability of compatible hardware and software applications and the acceptance of firstRain's products and services in the marketplace. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

firstRain, Instant Awareness, and the firstRain logo are trademarks of firstRain, Inc.

This press release does not constitute an offer to sell or a solicitation of an offer to buy securities.