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OuterBay TECHNOLOGIES CLOSES SERIES A FUNDING

OuterBay Technologies, a leading provider of software products for mastering applications data growth, announced the details of its Series A funding. BA Venture Partners and Leapfrog Ventures, LLC led the round. Also participating in this round were Wilson, Sonsini, Goodrich & Rosati LLP and several private individual investors.

In an economic environment where venture funding has dropped by greater than 60%, this investment of more than $10 million is a strong endorsement of OuterBay's business plan and growth potential. Outerbay Archiver improves performance and insures stability of mission-critical Oracle applications up to 40% by eliminating the "data cholesterol" that builds with transaction volume. In addition, with a smaller production database and online archive, customers are now minimizing downtime for upgrades and maintenance, reducing storage costs, and providing users continuous access to historical data.

As Rory O'Driscoll, Managing Director from BA Venture Partners described it, "OuterBay made our due diligence fairly easy. They had a number of highly referenced, well-known customers that contributed to the profitability of OuterBay. Add to that our knowledge of the market and understanding that data growth and storage requirements are expected to grow thirty-fold in the next ten years. It made it easy to understand that OuterBay was clearly hitting the middle of a new and untapped market."

Peter Rip, Managing Director of Leapfrog Ventures LLC, stated, "The enterprise data storage management software market is expected to generate revenues of $5.3 billion by 2003, up from $2.1 billion in 1998. OuterBay is well positioned with its unique OuterBay Archiver product to garner its share of this growth. Nearly every major IT department will experience the effects of "data cholesterol" as their application usage volumes grow."

"We are very excited about the momentum that we get from our investors. With their extensive business knowledge and contacts, OuterBay will expand its reach into the ERP markets quickly. This funding also allows us to augment our team with more super stars in the applications performance space. And it allows us expand upon our work with customers in their fight against data cholesterol," said Rich Butterfield, COO and Co-Founder of OuterBay Technologies.

More About BA Venture Partners

BA Venture Partners, www.baventurepartners.com, is a $500 million venture capital partnership, whose sole limited partner is Bank of America. BA Venture Partners focuses on companies in broadband and wireless communications, Internet infrastructure software and services, and biotechnology.

More About Leapfrog Ventures

Leapfrog Ventures, www.leapfrogventures.com, is a venture capital investment firm in Menlo Park, California. Leapfrog Ventures specializes in early stage venture capital for information technology companies. Leapfrog invests in enterprise software, communications, and next-generation computing technologies. Prior early stage investments of Leapfrog's principals include E.piphany, Exabyte, Exodus Communications, Octel Communications, and Symantec.

More About OuterBay

OuterBay Technologies is a leading provider of software products for mastering applications data growth. Through proactive archiving of production databases, customers improve application performance, minimize down-time for upgrades and maintenance, reduce storage costs, and provide users continuous access to historical data. Founded in 1997 by four database technologists, OuterBay Technologies is headquartered in Silicon Valley with offices in Europe and Australia. Customers include Fortune 1000 and emerging global economy leaders, spanning high technology, process manufacturing, and financial services industries. For more information on data cholesterol or ways to solve the problem, contact OuterBay at www.outerbay.com, or 408-557-6100.

Contact Bill Morrow, OuterBay Technologies, 408-557-6100, bmorrow@outerbay.com.