!hey software inc. Receives $10 Million in Financing from Telcom Ventures and The Goldman Sachs Group, Inc.

Business/Technology Editors

NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Feb. 22, 2000

!hey software inc. today announced it has completed a $10 million first round of institutional funding. Investing was led by Telcom-Internet Investors, L.L.C., a subsidiary of Telcom Ventures, L.L.C and also included The Goldman Sachs Group, Inc. !hey will use the funding for further technical development and aggressive marketing of !heycenter, the first and only application Web site for e-customer sales and service.

!hey's integrated customer care technology and services help e-businesses acquire and retain customers. Recent studies show that e-shoppers are likely to abandon shopping carts for lack of instant customer service. Jupiter Communications notes that 90% of online customers prefer human interaction. Yet according to media research firm Paul Kagan Associates, Inc., less than 5% of retail Web sites offer immediate customer service assistance.

!hey's solution bridges this gap with a purely Web-based customer service solution that provides a unified approach to customer interaction across all media, including live voice, interactive voice self-service, text chat, voice chat, e-mail, and collaboration. !hey's technology intelligently matches each e-customer to the right resource for customer service. This scalable solution snaps into an existing Web site, enabling e-businesses to quickly and easily implement sophisticated customer care without having to invest in hardware, software or infrastructure.

"We see in !hey a breakthrough vision to revolutionize business-to-customer online interactions," said Rahul Prakash, President of Telcom-Internet Investors. "!hey's technology uniquely provides sophisticated capabilities through a hosted service that's fast and easy to implement, delivering real return on investment to e-business." Prakash has assumed a seat on !hey's executive board.

"We believe in !hey's executive team and that their vision will drive the company to long-term success," said Joe Gleberman, Managing Director, Goldman Sachs.

!hey's offering is based on technology developed by WhiteCap Development Corporation, the incubator of this new company. WhiteCap's applications are in use by Microsoft and other leading technology companies.

"This strong financial backing and partnership from Telcom and Goldman Sachs is an important validation that !hey has the right technology and market vision to help e-businesses maximize customer interaction and optimize resources," said Duncan Mackay, President and CEO of !hey. "Our intent with this first round of funding will be to continue to deliver innovative solutions for e-customer care and take an aggressive stance in the marketplace."

About Telcom-Internet Investors, L.L.C.

Telcom-Internet Investors, L.L.C. is an Alexandria, VA-based subsidiary of Telcom Ventures, L.L.C., a limited liability company headed by Dr. Rajendra Singh, a high-tech entrepreneur, and internationally-known investor Rahul Prakash. Telcom's portfolio includes such telecommunications companies as LCC International (Nasdaq: LCCI), the world's leading wireless engineering firm, Teligent, Inc. (Nasdaq: TGNT), a wireless telecommunications services company, Aether Systems, Inc. (Nasdaq: AETH), a provider of wireless services for real-time communications, and XM Satellite Radio Holdings Inc. (Nasdaq: XMSR), a satellite-based audio entertainment and information programming service for consumers. Telcom entered the Internet space in 1999 with ChamberBiz, L.L.C., a joint venture with the U.S. Chamber of Commerce to create the Web's premier small business portal. The firm's investment in !hey software, inc. demonstrates the firm's growing involvement in the Internet space.

About 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. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

About !hey

!hey provides live interaction capabilities for e-business through !heycenter(sm), the first and only application Web site for e-customer sales and service. !hey offers a new way for e-businesses to combine self-service and interactive services with the power and features of sophisticated customer interaction solutions. !heycenter supports traditional ways of communicating - live voice and interactive voice response and new ways of communicating that are made possible by the Internet, including text chat, voice chat, e-mail, and collaboration. !hey makes it easy for e-businesses to snap customer care capabilities into their Web sites and quickly establish a complete interaction solution. For more information, visit www.heyinc.com.

!h is a trademark of !hey software inc. !heycenter is a servicemark of !hey software inc.