I-Group HotBank Provides First Round of Funding forIntelligence Distance Learning Systems.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--Sept. 7, 2000

Leading Boston Incubator Leads Seed Capital Partners and

Intercontinental Group in Funding Web-based Educational Service

I-Group HotBank NE, Boston's premier Internet incubator and a SOFTBANK

CORP. affiliate, today announced that it led a first-round funding of $4.5 million for Intelligence Distance Learning (iDL) Systems, a provider of Web-based educational services. I-Group HotBank led the round of funding with additional investments from Seed Capital Partners, the Intercontinental Group, Prakash Bhalerao and Desh Deshpande, Founder and Chairman of Sycamore Networks.

"I-Group is focused on identifying entrepreneurial companies with the highest potential in their industry and providing them with the resources and funding to succeed," said Ashok Kalelkar, managing director and partner at I-Group HotBank NE. "iDL has a solid technology edge, management team and business plan in place. We are confident that with the right funding, they are capable of meeting and exceeding their vision to be the leader in the next generation of intelligent, Web-based technologies for delivering quality education--anywhere, anytime."

Kalelkar, along with Seed Capital Partner's Ron Schreiber, will serve on the iDL advisory board. iDL, a spin-off of MIT, is the industry pioneer in distance learning and holds an exclusive license to technology that has been in development at MIT since 1995. iDL technology creates an individualized path through learning materials, increasing retention and understanding with its Intelligent Distance Education Architecture - IDEA(TM) software.

"Businesses today find that effectively training employees to keep up with the pace of technological changes and product innovations has grown tremendously difficult, and the costs and travel involved in training often exceed budget and time allocations," said Dr. Nishikant Sonwalkar, Co-Founder of iDL and Director of Hypermedia Teaching Facility at MIT. "Intelligent Distance Learning provides the technologically and educationally sound solutions necessary to establish and maintain competitive advantage--faster, more economically and better than other Web-based distance learning companies."

iDL has extensive experience in online education, professional learning and development and customer care and service. Founded by a team of educators and entrepreneurs from MIT, Harvard and national organizations, iDL brings unique experience, insight and technology to the area of Web-based education. iDL provides a cost-effective solution that brings training directly to the user, at their desktop. Businesses no longer need to allocate exorbitant annual resources on professional development courses, or send staff to remote locales for training that is often inconsistent or poorly evaluated in terms of employee learning.

About iDL

Headquartered in Cambridge, Mass., with regional offices located in Washington, DC, Germany and India, iDL has developed a variety of Web-based tools for teaching and learning which enable instructors to organize existing course materials in accordance with different learning styles. Utilizing text, graphics, video, animation, self-guided navigation and online interactions with instructors, this "flexible cognitive approach" offers learners multiple pathways to course materials. Additionally, the IDEA(TM) software enables learners to repeatedly take online tests and revisit course material using alternative learning strategies. IDEA(TM) provides the means to change learning modalities, thus maximizing the potential for delivering course materials to learners in a manner which makes sense for them. Additional information on iDL is available online at http://www.idlsystems.com.

About I-Group HotBank NE

I-Group HotBank NE is the premier Northeast incubator for Internet entrepreneurs, focused on turning great ideas into fast-growing businesses. I-Group HotBank combines the expertise of Internet business leader SOFTBANK Corporation and the Intercontinental Group, one of Massachusetts' most successful entrepreneurial businesses. I-Group HotBank moves far beyond providing the basic administrative services, office space and working capital that incubators are known for. I-Group HotBank empowers early-stage ideas and companies with 'Mentor Capital' services--the expertise and resources for early-stage companies to succeed in today's competitive marketplace. I-Group HotBank also leverages the powerful SOFTBANK network of 300 high tech and Internet companies to offer mentoring and partnership, sales, investment and recruitment assistance. I-Group HotBank's Ames Mansion is a 25,000 square foot brownstone mansion with original woodwork and designs, equipped with the latest technology, support and amenities. I-Group HotBank is located on the World Wide Web at http://www.i-group.com.