AppStream Launches Brand New Technology That Breaks Apart and Deploys Internet Applications.

Business Editors/High-Tech Writers

Red Herring's Venture 2000 Conference

LAKE TAHOE, Calif.--(BUSINESS WIRE)--May 1, 2000

Internet Infrastructure Company Also Announces $8.5 Million

Initial Financing Round Led by Draper Fisher Jurvetson 

AppStream, Inc. today introduced a breakthrough technology for accelerating and simplifying the hosting, management and deployment of rich applications at the edge of the network. AppStream's patented technology is the first solution that enables application service providers (ASPs), e-commerce sites and enterprises to intelligently break apart dynamic content and applications and deliver them to thousands of end-users in a personalized, on-demand basis.

The technology has been in use at beta sites for several months and becomes commercially available today. AppStream also announced today a Series A round of financing of $8.5 million from leading venture capital firm Draper Fisher Jurvetson, Evergreen Management and angel investors. AppStream made both announcements today at the Red Herring Venture 2000 Conference, where the company was selected one of the "top 10 private companies to watch."

ASPs, large Web sites and enterprises deploying Internet applications face numerous challenges related to performance, manageability and scalability. These difficulties are compounded when applications rely on complex databases, dynamic content and heavy server processing. AppStream's technology and its Virtual Hosting Network are the first solutions that fully address the increasing demands of deploying Web-based applications.

"We've spent more than two years working to overcome the pervasive challenges and inefficiencies associated with managing and deploying applications throughout the network," said Uri Raz, founder and chief executive officer of AppStream. "We have created a new architecture that automatically adapts to the complex, ever-expanding nature of the Internet. The result is rich, proprietary technology that leverages the edge of the Internet to speed application deployment and allows applications to become an organic part of the network. In short, AppStream is redefining how companies buy, manage, deploy and use software."

"AppStream has the opportunity to change Internet- and network-based computing as we know it," said Jennifer Fonstad, director at Draper Fisher Jurvetson, the lead firm involved in AppStream's first external financing round. "It became obvious to us almost immediately that AppStream has the management team, technology and vision to quickly catapult into a key Internet infrastructure player."

Internet Breakthrough

AppStream's team of 20 scientists and mathematicians have spent the last two years developing technology that intelligently distributes Internet applications by segmenting the application into pieces and delivering only the needed parts to each individual end user in an on-demand basis. This improves the speed and efficiency of application delivery, while limiting network and infrastructure dependency. AppStream already has six patents pending with several more in progress.

The AppStream Virtual Hosting Network is based on proprietary technologies for segmentation, prediction and delivery of software and data:

--  Segmentation: Data and applications are segmented automatically
    based on their structure and continuous analysis of usage
    patterns.

--  Prediction: Usage patterns are analyzed in real time to sequence
    data and application segments for optimized delivery to each
    end-user or network edge.

--  Delivery: Streaming protocols are used to speed delivery of
    segments and retrieve usage statistics.

"AppStream is an important breakthrough for using Java on the Web because it adds a sorely needed layer of intelligence to the Internet," said Scott McPherson, CEO of MochaMail.com. "AppStream anticipates what the user will need next and loads pieces of the application over the network accordingly. Using AppStream with the MochaMail client applet, we saw application loading times on a dialup modem drop from almost two minutes to under ten seconds."

About AppStream

AppStream, Inc. is an Internet infrastructure company that helps application service providers (ASPs), high volume Web sites and enterprises increase the performance, manageability and scalability of their Internet applications. AppStream's patented technology intelligently breaks apart dynamic content and rich applications and deploys them in a personalized, on-demand basis using predictive analysis of user behavior. AppStream employs a "virtual hosting," service-based business model that utilizes the last mile of the Internet to dramatically improve performance and move the edge of the network to the end user's desktop. The company is funded by Draper Fisher Jurvetson and Evergreen Management and is headquartered in Palo Alto, California, with engineering operations in Tel Aviv, Israel.