Quallaby Corporation Closes $15 Million in Financing

Quallaby Corporation, a leading provider of highly scalable network performance management solutions, announced it has raised an additional $15 million in private equity financing. This recent round was led by new investor HarbourVest Partners and included new investor Brinson Partners plus existing investors Matrix Partners, North Bridge Venture Partners, and Commonwealth Capital Ventures. Combined with previous investors Galileo and Partech International, Quallaby's funding to date totals $31.5 million.

The additional capital will be used to advance the company's focus on service provider requirements for highly scalable and flexible software infrastructure, to expand the professional services organization, and to enhance sales and marketing worldwide.

"We are pleased to be part of the Quallaby team," said Ofer Nemirovsky, Managing Director at HarbourVest Partners. "With PROVISO 2.0, Quallaby is the only vendor with a true data mart solution that caters to the needs of every service provider who wants to stay competitive. According to their customers, Quallaby is ahead of the curve. We want to ensure they stay there."

Quallaby recently announced PROVISO 2.0, a major new release of its network performance management solution, architected expressly for the next generation network needs of service providers, with a Sun Solaris platform and Oracle database support. This carrier-class architecture lets service providers keep all their network data in a scalable, centralized data mart that allows the data to be used and reused for optimizing network performance and managing service delivery. "Within the last year, Quallaby has seen its service provider strategy confirmed by our market, our customers, and our investors," said Greg Ferguson, president and CEO of Quallaby. "We have plugged right in to an exploding market opportunity. With our strategy and focus, we're right where we want to be."

About HarbourVest Partners LLC

HarbourVest Partners LLC, formerly Hancock Venture Partners Inc, was established in 1982, and is now one of the largest private equity investment firms in the world, managing assets of over $11 billion. HarbourVest has developed expertise in the areas of Internet infrastructure, networking, telecommunications, software and management buyouts. In the last two years, HarbourVest has deployed over $500 million in over 50 growth stage enterprises. The firm currently has investments in the US, Canada, Europe, Asia and Latin America.

About Quallaby

Quallaby Corporation is a leading provider of highly scalable network management solutions worldwide. Quallaby's PROVISO 2.0 is the first carrierclass network monitoring and service assurance solution to enable carriers and network service providers to build the network performance data marts they need to meet their business requirements. Headquartered in Lowell, Massachusetts, Quallaby has offices in France, the United Kingdom, Germany, California, Texas and Virginia. Chosen one of the Top 100 Emerging Companies to Watch in 2000 by Computerworld, Quallaby is a privately-held company. For more information, visit Quallaby's Web site at www.quallaby.com or call toll-free 877-QUALLABY (782-5522).

Contact The Launch Company, Patrick McShane, 978-369-2100, pmcshane@launchcompany.com.