Business Editors

VALHALLA, N.Y.--(BUSINESS WIRE)--June 27, 2000

Cognet Corp., a rapidly growing developer of software management technologies for corporate computing and emerging personal communications devices, today announced that it has completed a third round of financing from investment firms SI Ventures, an affiliate of GartnerGroup, and C.E. Unterberg, Towbin, respectively, totaling more than $8.0 million. The company has now secured more than $16.5 million in financing.

According to Cognet Corp. Chairman and CEO Dov Goldman, the company will utilize the proceeds from the investments to fuel its rapid growth, strengthen its financial position, and support development of the next generation of its flagship software management product.

"We believe these strategic investments validate the acceptance among corporate and government information technology organizations for our software deployment and management solutions," said Goldman.

Sebastian Oghlidos, Associate Director of SI Ventures, noted Cognet Corp.'s software distribution and management technology addresses an increasingly complex and labor-intensive challenge for information technology (IT) departments - managing software across far-flung enterprises. "History doesn't repeat itself; its creation of the `new' that's not easily conceived. Cognet is certainly not about repeating history; it has the talent; it has the `next generation' technology, and now it has the strategic investors," he said. Oghlidos, along with Dr. N. Adam Rin, Managing Director with SI Ventures, will join Cognet's Board of Directors.

Steve Novak, Managing Director of C.E. Unterberg, Towbin's Internet Practice, said his firm's investment in Cognet Corp. reflects Unterberg's interest in companies with proven technologies, an established customer base, and an opportunity to become a dominant player in their respective fields. "Cognet Corp. has developed some outstanding software management technology that helps companies efficiently control and maintain their software lifecycles," said Novak. "There's a significant need in the marketplace for the solution they offer, and they're already starting to capitalize on that market opportunity. We are particularly excited about some of Cognet's Internet initiatives."

Under terms of the investments, C.E. Unterberg, Towbin committed $3.5 million in March of this year, while GartnerGroup affiliate SI Ventures and an associate investment partner committed $3 million in June. Both organizations received preferred stock for their investments. An additional investment by C.E. Unterberg, Towbin and SI Ventures in the amount of $5 million is scheduled to occur this fall.

Headquartered in Valhalla, NY, Cognet Corp. is a rapidly growing developer of software management technologies for corporate computing and personal communications devices. Its flagship product, Cognet 3.1, is a highly customized electronic software distribution solution that allows network administrators to automatically distribute and maintain applications for a range of networked desktop, remote and mobile devices. For further information, visit Cognet Corp.'s Web site at www.cognet.com or call 914-747-0770.

FORWARD LOOKING STATEMENTS

Statements used in this press release that relate to future plans, events, financial reports or performance are forward-looking statements as defined under the private Securities Litigation Reform Act of 1995. Actual results may differ materially form those anticipated as a result of certain risks, uncertainties and assumptions, including but not limited to, market acceptance of the Company's products, adverse economic and market conditions, governmental regulation and regulatory uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Cognet Corp. undertakes no obligation to republish or revise forward-looking statements to reflect anticipated or unanticipated events or circumstances after the date hereof.