Venture Update Vol IV, #5, May, 2000

• Done Deals
• New Developments
• On The Up
• Mark Your Calendar

Done Deals

Research Triangle Park—OpenSite Technologies, Inc. (www.opensite.com), a developer of Web-based auction software for e-commerce, formed an agreement in April 2000 to be acquired by Siebel Systems, Inc. (Nasdaq:SEBL), a supplier of eBusiness application software. Under the terms of the agreement, each outstanding share of OpenSite common stock will be exchanged at a fixed exchange ratio of approximately 0.13 for newly issued shares of common stock of Siebel Systems. The deal was worth $444 million based on the closing price of Siebel Systems stock on April 17, 2000. Contact: Shawn Ramsey-Kroboth (919.287.0214).

Raleigh—HAHT Software Inc., (www.haht.com), a global provider of business-to-business (B2B) sell-side e-commerce solutions, secured $25 million in a mezzanine funding round in April 2000. The round was led by CIBC Capital Partners and included new investors Franklin Street Partners, Page Mill Capital and QUALCOMM Incorporated, and existing investors Adobe Ventures, BankAmerica Capital, Hummer Winblad, JMI Equity, Menlo Ventures, Sippl Macdonald Ventures and Southeast Interactive. Contact: Alex Plavocos (919.786.5100).

Research Triangle Park—Xanthon Inc. (www.xanthoninc.com), a genomics company with patented technology for the direct analysis of DNA and RNA, completed a $12 million Series D round of financing in April 2000. Investors included The Aurora Funds, Centennial Venture Partners Fund, Cordova Technology Partners, Franklin Street Partners, Intersouth Partners, Noro-Moseley Partners and The North Carolina Technology Development Authority. Contact: Peter J. Heath (919.572.0707).

Research Triangle Park—The Aurora Funds, Inc. (www.aurorafunds.com), a Research Triangle Park-based venture capital firm with satellite offices in Reston, Va. and Birmingham, Ala., closed on a $52 million venture capital fund in April 2000. The fund is Aurora's third fund. Contact: Pam Newton (919.484.0400).

Cary—Alternate Realities Corp. (www.virtual-reality.com), a developer of virtual reality and 3-D systems, received $6 million in venture capital financing in April 2000. Investors included BancBoston Ventures, CIT Venture Capital, NewLight Associates and Southeast Interactive Technology Funds. Contact: Michael A. Odell (919.816.8787).

Research Triangle Park—Tavve Software (www.tavve.com), a developer of network management software, received $10 million in second round financing from ABN AMRO Private Equity and Brinson Partners. Contact: Nick Francis (919.460.1789).

Morrisville—ITParade.com (www.itparade.com), a provider of B2B E-Commerce solutions for the IT marketplace, closed on an undisclosed amount of second round financing from private investors in April 2000. Contact: Jenny Freitas (919.388.9993).

Charlotte—Internetsoccer.com (www.internetsoccer.com), a soccer Internet site that seeks exclusive digital rights to players, teams, leagues and games worldwide, acquired Britain's Footballpages.com, a soccer fan site, and SoccerRecruiting.com, a site that matches college recruiters with high school and club players. Internetsoccer.com paid an undisclosed amount for the sites in a combination of cash and stock. Contact: Mac Lackey (704.377.7477).

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New Developments
Cary—LIPSinc (www.lipsinc.com), a developer of voice signal processing software, has entered into an agreement with Electronic Arts (Nasdaq: ERTS), the world's largest interactive entertainment software company. Under the agreement, LIPSinc will license its technology for use in an online interactive entertainment product. Contact: Michael Helpingstine (919.468.7005).

Charlotte—Micell Technologies (www.micell.com), a developer and manufacturer of liquid carbon dioxide dry cleaning systems, formed a partnership with Bank of America in April 2000. Under the partnership, Bank of America will provide specialized franchise financing to give dry cleaners the opportunity to switch to Micell's environmentally friendly cleaning process that uses carbon dioxide. The finance package includes SBA loan programs that are offered to eligible Micell franchisees in the District of Columbia and in the 21 states in which Bank of America operates. Contact: Gena Arthur (919.313.2102).

Research Triangle Park—Celotek Corporation (www.celotek.com), a developer of high performance network security, released its ASIC technology for high performance Asynchronous Transfer Mode (ATM) network applications in April 2000. Celotek's Alcatraz^TM ASIC is the first and currently only single-chip solution for high speed, highly secure ATM networks. Contact: Cheryl Joyce (919.462.1900).

Research Triangle Park—PlanetPortal (www.planetportal.com), a developer of patent-pending WebCodes technology,has formed an agreement with Continental Plastic Card Co., a provider of quality printed plastic and magnetic cards. Under the agreement, Continental will be the first printer that can deliver WebCards, web-enabled plastic cards using PlanetPortal's WebCodes. Contact: Mark de Visser (919.425.0140).

Research Triangle Park—The Council for Entrepreneurial Development (www.cednc.org) has selected 35 companies to present at the Venture2000 conference on May 10-11. The companies are:

Visit the Venture2000 Web site at www.cednc.org/venture/2000.

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On The Up
ALERTS.COM
How can you keep up with the latest changes to your favorite Web site? Alerts.com has the answer.

Its Alerts Service automatically detects changes to the site and then notifies visitors via email and email enabled wireless devices including pagers, cell phones and personal organizers. "Unlike other services, Alerts.com opens up the entire content of Internet sites for the intelligent detection, formatting and generation of custom services delivered via email," notes Mike Jones, Alerts.com's president and CEO. "And we'll provide the necessary hardware, software and communications infrastructure for these services."

For instance, once the Alerts.com system is enabled on a partner's site, a visitor can request to be notified when specific Web content-a target stock price, availability of a product, an auction bid, a news article, a weather forecast, discounted airfare, etc.-appears or changes.

It's not only a good thing for users. "Our partners will be able to increase site traffic, add stickiness and increase revenues by delivering advanced branded email automation services that pull users back to their sites with specific, user requested email. Through Alerts.com's Infomediary site, we will be opening up the entire Internet for intelligent change detection and automatic alert notification."

Alerts.com has signed CNET, Ford and Glaxo Wellcome as customers and expects to add at least 20 more to its roster of 60 clients. It also has marketing agreements with RTP companies InterAdNet and NetGift Registry.

The company raised an initial round of $2,500,000 from The Aurora Funds, Intersouth Partners and Cordova Capital.

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Mark Your Calendar!

Venture 2000
May 10 - 11
UNC Friday Center, Chapel Hill

Holiday Golf Tournament
May 22, 2000
1:00 p.m.
Governor's Club, Chapel Hill

Speakers' Program: Research Triangle Chapter National Association of Corporate Directors
May 25, 2000
7:30 - 9:45 a.m.
Marriott at Research Triangle Park

Biotech 2000
May 31, 2000
8:00 a.m. - 5:00 p.m.
The Friday Center at UNC-Chapel Hill

Streak Luncheon
June 8, 2000
Noon - 1:30 p.m.
Holiday Inn, RTP

CED Entrepreneurial Excellence Awards & Family Sunset Carnival
June 22, 2000
5:30 - 8:30 p.m.
Location: CED, RTP

For more information about these events or to register, visit the CED Web site at www.cednc.org or call 919.549.7500.

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CED is a private non-profit organization supported, in part, by corporate contributions, including funding from MCI Telecommunications, Midway Airlines, Inc. and Moore & Van Allen, PLLC.

Research Triangle Venture Update is published by the Council for Entrepreneurial Development (CED), a non-profit organization located in Research Triangle Park, N.C.
Editor Carolyn Foy, CED
P.O. Box 13353
RTP, NC 27709
Phone: 919.549.7500
Fax: 919.549.7405
Email: mcfoy@cednc.org