InStranet Inc. Raises $14.7 Million in Series C Financing
 
Benchmark Capital and Donald L. Lucas, Leading U.S. Venture Capital Investor, Participate in Round
 
New York, June 28, 2001 – InStranet, Inc., developers of software for Enterprise Information Exchange (EIX) applications, announced today that it has raised $14.7 million in Series C financing. Benchmark Capital and Donald L. Lucas, a leading U.S. venture capital investor, joined in co-funding the round. One of Silicon Valley's top high-tech venture capital firms, Benchmark Capital is investing through its new Benchmark Europe I, L.P. fund. Original investors Business Objects (Nasdaq: BOBJ), Apollo Invest, RSA S.A. and Galileo Partners, one of Europe’s best known venture capital firms, are also participating.

With major deployments in leading Fortune 500 companies and 80 employees worldwide, InStranet will use the funding to expand its sales and marketing initiatives, and to further product development. Headquartered in New York with offices in London, Paris, and technology distribution partnerships throughout Europe and Asia, the company is seeking to address the rapidly growing market for EIX applications. InStranet’s application allows large corporations to centralize, organize and securely share the unstructured content that comprises the vast majority of enterprise data.

"InStranet's technology addresses a growing business opportunity in Fortune 1000 companies," stated Lucas. "There is an increasing demand for an application that allows corporations to exchange critical information. InStranet has the right leadership and vision to take advantage of this tremendous market opportunity."

"InStranet has responded to the need for an enterprise-level solution that allows the large corporation to efficiently communicate across business units and with clients," stated Eric Archambeau, general partner at Benchmark Capital. "We believe InStranet will continue to be a leader in this emerging space."

Based on XML and Java technology, InStranet's EIX software uses a patent pending Web Content Warehouse system that enables companies to centralize unstructured information from all divisions in the enterprise, and to exchange it with top customers, suppliers and partners securely over the Internet. The shared technology greatly improves the customers’ experience in accessing services. Benefits of EIX applications include increased customer retention and profitability.

“In today's market, companies are looking for a quick return on their investments. We have demonstrated to our customers that our technology quickly increases efficiency and improves service to their clients, impacting the bottom line, " stated Alex Dayon, co-founder and chief executive officer. "We are delighted to have received such strong backing from leading venture capitalists experienced in this market. This investment enables us to expand our efforts to take advantage of a tremendous worldwide opportunity."

About Benchmark Capital

Benchmark Capital was founded in 1995 with the mission of helping talented entrepreneurs build major technology enterprises focused on long-term growth. Benchmark takes a labor-intensive, team-oriented approach to venture investing in order to deliver a superior level of service to its portfolio companies. Benchmark's portfolio includes franchise companies such as Ariba Technologies, Broadbase Software, CacheFlow, Critical Path, eBay, Handspring, Juniper Networks, Kana Communications and Red Hat Software. Managing more than $2.3 billion in committed venture capital, Benchmark focuses on early-stage investing in markets where the partners have direct, relevant experience. In Europe, Benchmark Capital manages a $750 million fund. For more information on Benchmark, visit its Web site at www.benchmark.com.

About Galileo Partners

Founded in 1989, Galileo Partners manages over $350 million of private equity capital from institutional investors such as HarbourVest Partners, Goldman Sachs, GIMV, GIC, VCM, Vontobel, Kleinwort Benson & Hambros. Galileo focuses on early-stage investments in the areas of software, new media, communications, Internet infrastructure and services. Galileo provides more than capital to portfolio companies: it contributes its collective operational experience and network of contacts in the IT industry. Galileo’s philosophy is to work closely with entrepreneurs and help them build outstanding companies. For additional information visit www.galileo.fr

InStranet is a worldwide leader of multi-channel knowledge business applications. Global 2000 companies rely on InStranet's solutions to automate content and knowledge delivery for contact centers, field sales and Web self-care for servicing and sales initiatives. InStranet's Multi-Channel Knowledge Applications enable businesses to securely create, manage and deploy critical profile-based content for enterprise channels, and to analyze results to identify key successes or areas for improvement.

InStranet applications are currently deployed in many high-profile global enterprises, including 3M, AXA, BNP Paribas, Credit Lyonnais, France Telecom, Manpower, Orange, and Zurich North America. Global partners include Aspect Communications, BEA Systems, Genesys, IBM, Oracle, and Sun Microsystems. InStranet is headquartered in Chicago with offices in Paris, and technology and distribution partnerships throughout Europe and Asia.

For more information, contact:

InStranet, Inc.
InStranet EMEA
Andrew Zinger
(312) 629-4577
azinger@instranet.com