Softricity Secures $14.6 Million in Oversubscribed Third Round Venture Funding; Provides Fuel...

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--July 29, 2002

Softricity, Inc., developer of the SoftGrid(TM) application deployment and management platform, announced today the completion of an oversubscribed $14.6 million third round of venture funding, bringing its total

New investors TD Capital Technology Ventures and FA Technology Ventures led the round, joined by Hunt Ventures and Markpoint Venture Partners, along with previous investors Prism Venture Partners, Longworth Venture Partners and Technology Link Capital. Continued support from its existing investors, plus the infusion from four new venture capital firms, strengthens Softricity's financial base as it expands its channel sales and marketing efforts across North America, Europe and Asia and takes advantage of its alliances with Microsoft Corporation and Citrix Systems. Softricity also announced that Paul Ciriello, Managing Director at TD Capital, and Greg Hulecki, Senior Partner at FA Technology Ventures, have joined Softricity's Board of Directors. Scott Segell of Hunt Ventures has joined as a Board observer.

"TD Capital Technology Ventures invested in Softricity because we strongly believe that the company will enable the next generation of application deployment and management," said Paul Ciriello, Managing Director, TD Capital Technology Ventures. "Every company has a need to centrally administer their software. The functionality and quick returns on investment achieved with Softricity's SoftGrid solution are dramatic."

"Up until now, the concept of delivering rich, interactive applications over networks has been mostly hype. Softricity makes the promise a reality." said Greg Hulecki, Senior Partner, FA Technology Ventures. "Softricity's alliances with Microsoft and Citrix demonstrate that their approach complements industry leaders' standards and has the opportunity to turn the company into one of the leading players in the application deployment and management space."

Softricity's products transform applications into network services that can be delivered to thousands of computers from a single server. The company's flagship product, the Softricity SoftGrid Platform 2.0, eliminates the need for installing and updating applications on a machine-by-machine basis, simplifying the management and administration of Windows desktops and Windows Terminal Server. This allows enterprise customers to reduce the cost of application administration and realize significant returns on their investment. In April, 2002, Softricity announced general availability of its SoftGrid Platform, which is deployed inside Fortune 100 companies.

Softricity recently announced a multi-year Strategic Alliance with Microsoft Corp. involving joint development, sales and marketing initiatives to turn existing and emerging Windows applications into .NET-managed web services. "Softricity provides a tangible illustration of the technical and business benefits of .NET XML Web services and is a great example of partners realizing improved business agility with .NET," said Sanjay Parthasarathy, vice president of the U.S. .NET Platform Strategy Group at Microsoft.

"Customer response to our solution has been tremendous, and this funding will allow Softricity to fully capitalize on the momentum we have created in the market," said Harry Ruda CEO of Softricity. "To have investors providing this amount of capital during the economic times we're going through is a testament to the strength of Softricity's technology and products."

About Softricity

Softricity Inc. develops products that allow its enterprise customers to reduce the cost of application administration and realize significant returns on their investment by enabling applications to be delivered as network services to thousands of computers from a single server. The company's flagship product, the Softricity SoftGrid Platform 2.0, eliminates the need for installing and updating applications on a machine-by-machine basis, simplifying the management and administration of Windows desktops and Windows Terminal Server. Softricity has a multiyear Strategic Alliance with Microsoft Corp. (Nasdaq "MSFT"), is a Microsoft Terminal Services Industry Partner and is a Premier Citrix (Nasdaq "CTXS") Business Alliance Member. More information can be found by visiting the Softricity Web site at www.softricity.com

About TD Capital Technology Ventures

Established more than 30 years ago, TD Capital is the private equity arm of TD Securities, the wholesale banking division of the TD Bank Financial Group. TD Capital has approximately $1.9 billion of capital under management through its offices located in Canada and the United States. TD Capital Technology Ventures, an investment group within TD Capital, invests in early and growth stage companies with significant technology assets and market opportunities that span multiple industry sectors. Specifically, TD Capital Technology Ventures focuses on investments in enterprise software, IT infrastructure and communications software and hardware. TD Capital Technology Ventures has six investment professionals located in its Boston office. For more information on TD Capital and its investment groups, go to www.tdcapital.com.

About FA Tech Ventures

FA Technology Ventures (FATV) provides equity capital for next generation Information Technology and Energy Technology companies. The fund looks for early to expansion stage companies founded upon technological breakthroughs or innovative business models that are led by experienced, passionate entrepreneurs. FATV plays a lead role in investments and actively looks to add value by partnering with management teams to maximize their chance for success. The Partnership draws from a deep experience set in engineering, operations, executive management, banking, and venture capital, as well as a broad network of technology resources to help build tomorrow's leading companies. FATV has 7 investment professionals in two offices, Boston, MA and Albany, NY. More information is available at www.FAtechventures.com

About Prism Venture Partners

Prism Venture Partners, Westwood, MA, is a leading venture capital firm with early-stage investments in communications, business infrastructure software and healthcare. Since inception in 1996, Prism has rapidly gained industry recognition through the firm's high-visibility investment strategies. With $1 billion in capital under management, Prism's growth reflects the extensive entrepreneurial expertise of its partners, a hands-on approach to working with portfolio companies, an integrated network of investors, and access to growing pool of highly skilled entrepreneurs. To better leverage West Coast investment opportunities, Prism has recently established an office based in San Francisco. Additional information on Prism Venture Partners can be found at http://www.prismventure.com.

About Hunt Ventures

Hunt Ventures, L.P. is a diversified investment company with a primary focus on early stage companies with a technology or life sciences orientation. Hunt Ventures, L.P. is part of the group of privately held companies which are wholly owned subsidiaries of Hunt Consolidated, Inc. ("HCI"). HCI is a diversified holding company directed by Ray L. Hunt, with its major subsidiaries engaged in oil and gas exploration and production, real estate development, electric power, ranching, agriculture and private investing. For more information, please visit www.huntventures.com

About Longworth Venture Partners

Longworth Venture Partners is a leading venture capital firm focused on high growth and early-stage companies in information technology and related sectors. Longworth takes an active interest in its portfolio companies by leveraging the successful operating experience of its principals. All the principals at Longworth have significant experience in building leading software companies. Longworth Venture Partners is located in Waltham Massachusetts. For more information, visit http://www.longworth.com

About Markpoint Ventures

Markpoint Venture Partners is a Dallas based venture capital firm targeting early stage equity investments in high growth, emerging technology related companies. Markpoint Venture Partners preferred investments are in the communication, enterprise software, wireless and semiconductor industries. Markpoint Venture Partners seeks to leverage the operational and financial expertise of the firm's partners to help build exceptional companies.

About Technology Link Capital

Technology Link Capital is a venture capital firm with a strong presence in the Asian market. Technology Link Capital has relationships with major telecommunications and Internet Service Provider (ISP) companies.

Softricity, SoftGrid and SystemGuard are trademarks of Softricity Inc. Microsoft, Windows and BizTalk are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks or trade names of their respective owners.