Net.Genesis Secures $22 Million In Financing To Expand E-Business Intelligence Market Leadership

net.Genesis Corp., a leader in e-business intelligence solutions for both Fortune 500 and Web enterprises, has announced a strategic mezzanine round of financing of $22 million from a premier group of private and venture capital investors. The funding was led by BankAmerica Ventures with participation by Goldman Sachs, St. Paul Ventures, Nexus Group, Boston Millennia, J&W Seligman and Harte-Hanks Corporation. In addition, existing investors reinvesting in this round, include Charles River Ventures, Bessemer Ventures, OneLiberty Ventures and Robertson Stephens. Hambrecht & Quist acted as the placement agent and also participated as an investor in the financing. The new funding will be used to finance the company's growth in marketing, sales and product development.

"net.Genesis pioneered the e-business intelligence industry, and has clearly proven it is a leader in this growth market with a superior management team, innovative technology and world class customers," said Rory O'Driscoll, vice president of BankAmerica Ventures. "net.Genesis' solutions help e-businesses analyze the behavior of online customers, maximize return on investment and improve business and strategic decision making."

The proceeds from this financing will be used to further accelerate net.Genesis' fast-growing e-business intelligence business, which was chosen as an UPSIDE Magazine Hot 100 private company for 1998. net.Genesis will use the financing to enhance development of its industry-leading net.Analysis software, Design for Analysis methodology and to extend its enterprise application portfolio. The company will continue to grow its Professional Services operation, channel programs, and sales and marketing organizations to give its e-business intelligence solutions even broader market penetration and value.

"This blue-chip roster of private and venture capital Internet investors reflects net.Genesis' strength and momentum," said Larry Bohn, president and CEO of net.Genesis. "Customers, industry analysts and the press acknowledge our vision and market leadership position in e-business intelligence. As such, net.Genesis is well positioned financially and strategically for further growth and opportunity in the Internet market."

"As the Internet increasingly proves to be a lucrative channel for businesses in the present and future, Web site analysis and e-business intelligence will become crucial to the success of the investments being made to develop this channel," said Ullas Naik, senior vice president at FAC Equities/First Albany. "net.Genesis has a mature product, an installed base of blue-chip customers and seasoned management. This round of financing should help net.Genesis build on its market-leading position in its industry."

About The New Investors

BankAmerica Ventures

BankAmerica Ventures is the venture capital subsidiary of Bank of America Corporation and has been an active venture capital investor since the early 1960's. The firm has a long tradition of investing in rapidly growing, technology driven companies, and is committed to continuing the support of entrepreneurship. BankAmerica Ventures invests in three industries: information technology, healthcare, and services. The partners of the firm specialize in specific industry areas, and bring industry knowledge and expertise to its portfolio companies. BankAmerica Ventures invests in all stages of development, from start-up to late stage financings, however, most investments are made in companies that are shipping products. Investments are made on a national basis, and typically range from $3 million to $10 million for an initial investment.
 

Boston Millennia Partners

Boston Millennia Partners is a private equity investment partnership managing over $250 million in committed capital. With offices in Boston and Philadelphia, Millennia invests in high-growth businesses in the telecommunications, information technology, and life sciences industries. Typical investments range from $3 to $15 million. The managers at Millennia have funded over 100 companies in the U.S. venture market since 1980. Successful portfolio companies with whom they have invested include Brooks Fiber Properties, Inc./MCI Worldcom, Verio, Inc., and Powerfone/NEXTEL, among others. For more information please contact Boston Millennia Partners at http://www.millenniapartners.com or call 617.428.5150.
 

Goldman Sachs

Goldman Sachs is a leading global investment banking and securities firm, providing a full range of investing, advisory, and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments, and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. Goldman Sachs is headquartered in New York and has 41 offices in 23 countries around the globe.
 

Hambrecht & Quist

Since 1968, Hambrecht & Quist has been a leading force in the emergence and growth of technology investment banking and remains the largest independent investment bank focused on four growth segments of the economy: technology, healthcare, services, and branded consumer companies. Hambrecht & Quist has acted as financial advisor and/or underwriter to such companies as Amazon.com, Network Solutions, Apple, Genentech, Netscape, and Siebel Systems. In the past four quarters, Hambrecht & Quist has closed 87 financing transactions with an aggregate value of $9.03 billion, and advised on more than 83 mergers and acquisitions with an aggregate value of $6.4 billion. The New Economy is global, and so is Hambrecht & Quist, with offices in Asia, Europe, and North America offering a wide range of capabilities to clients, both international and local. To learn more, contact the Hambrecht & Quist office nearest you or visit http://www.hamquist.com.
 

Harte-Hanks Corporation

Based in San Antonio, Texas, Harte-Hanks owns and operates an integrated direct marketing company that provides a full range of specialized, coordinated and integrated direct marketing services including response management, database marketing and marketing services. The company also owns and operates shoppers that are zoned into more than 760 separate editions reaching over 9.2 million households in California and Florida each week.
 

J. & W. Seligman

J. & W. Seligman & Co. Incorporated was founded in 1864. Based in New York City, Seligman is an investment manager and advisor with more than $30 billion in assets under management. As well as providing management and advisory services to institutional clients, the firm provides a broad array of investments to individuals including the Seligman Group of Funds with more than 50 portfolios; Trillium, a variable annuity; and a range of retirement services. Additionally, it manages Tri-Continental Corporation, the nation's largest publicly traded, diversified closed-end investment company, and two-closed end municipal bond funds which are traded on the New York Stock Exchange. Seligman also manages a range of offshore investments available exclusively for non-US investors.
 

Nexus Group LLC

Nexus Group LLC is a private money management, Venture Capital firm managing assets for qualified individuals, foundations and endowments. Many of the firm's clients are founders and/or top executives of technology companies or technology venture capitalists. The firm focuses its private equity investments in enterprise software, e-commerce, and internet content/infrastructure companies. Representative investments in Nexus Capital Partners include Service Metrics, iVillage, Garden.com, CommerceOne, planetU, and Unwired Planet.
 

St. Paul Venture Capital

St. Paul Venture Capital ranks among the top 20 venture firms in the United States. The firm, with offices in Minneapolis, San Francisco and Boston, has committed more than $800 million to venture capital investments since its founding in 1988. The group makes early stage investments of $1 million to $12 million in information technology, consumer information technology, consumer and health care companies located throughout the United States.

About Existing Investors

OneLiberty Ventures

OneLiberty Ventures is a leading venture capital firm focusing on early to middle stage technology companies with a particular focus in the medical technology, telecommunications and information technology sectors. OneLiberty Ventures has provided backing to more than 80 companies, including Dataware Technologies, Inc., Charter Systems, Inc. (now part of The Bysis Group, Inc.), Structural Dynamics Research, and Intermedia Communications, Inc. and Metronet Communications Corp. OneLiberty Ventures is based in Boston and can be contacted at http://www.oneliberty.com.
 

Charles River Ventures

Charles River Ventures is one of the nation's leading early stage venture capital firms, focusing on high potential start-ups in the communications, software and information services industries. Founded in 1970, the firm's mission is to contribute to the creation of significant new enterprises by working in constructive partnership with driven, talented entrepreneurs. More than 50 Charles River-backed companies have gone public, with many going on to become industry leaders, including Cascade Communications (now Ascend]), Chipcom (now 3Com), Ciena, Parametric Technology and Sybase. Charles River Ventures is based in Boston and can be contacted at http://www.crv.com.
 

Bessemer Venture Partners

Bessemer Venture Partners (BVP), along with its limited partner, Bessemer Securities Corporation, has backed early-stage companies since 1911. BVP plays an active role in partnering with entrepreneurs to build companies that dominate their sectors. In the last five years, BVP has funded over 40 Internet and communications start-ups, including Aptis (now Northern Telecom, Cascade Communications (now Ascend), PSINet and VeriSign. BVP has offices in Menlo Park, New York and Boston, and can be contacted at http://www.bessemervp.com.

About net.Genesis Corp

net.Genesis, recipient of UPSIDE Magazine's 1999 Hot Companies Award, is a leading provider of e-business intelligence software and services that empower companies that market, sell and support products on the Web to understand, optimize and accelerate their online business. The company's flagship product, net.Analysis, is widely acknowledged as the industry's most sophisticated Web site analysis solution, offering unsurpassed analytical power, reporting, scalability and enterprise support. More than 250 market leaders use net.Analysis to improve their online businesses. These include Aetna, Apple Computer, AT&T, Bell Atlantic, E*Trade, Fidelity Investments, Fleet, Lucent Technologies, National Geographic and Xerox. Founded in 1994 and based in Cambridge, Massachusetts, net.Genesis is a strategic partner with such industry leaders as IBM, Allaire, Oracle, Net Perceptions.