Appian Ventures Closes $80M Fund; Colorado-Based Equity Fund to Invest in Software and Technology Companies that Enable ``Applied Connectivity''.

DENVER -- Appian Ventures, a Colorado-based venture capital firm, announced today that it has closed its first fund with $80 million to invest in software and technology companies in the Western U.S. that enable "Applied Connectivity" -- the application and management of network connectivity to improve business performance. Appian has already invested $5 million from Fund I in five such companies, including four early-stage Colorado companies: Roving Planet, Cadre Technologies, Oxlo Systems and LeftHand Networks.

"While enormous amounts were invested in the 90's to establish enterprise connectivity and network infrastructure," noted Mark Soane, managing director of Appian Ventures, "there is now a critical demand for 'Applied Connectivity' software and technology to help enterprises manage and exploit those network assets and enterprise data in a way that directly and significantly improves efficiency and enhances revenue. We expect this market to grow at 30% a year into a $150 billion market by 2008."

Appian Ventures was formed by Phillip Dignan, Don Parsons, Stacey McKittrick and Mark Soane, its managing directors, together with David Link and Lisa DeNazario. Appian's sponsoring investor, Quest Capital, manages investments for Barbara Bridges and Rutt Bridges, successful software entrepreneurs who are committed to supporting technology growth in Colorado. Additional private capital was raised from several institutional investors, including Wells Fargo, Key Bank and Silicon Valley Bank, and many influential Colorado entrepreneurs with deep experience in growing successful companies. Fund I is also licensed and funded as a Small Business Investment Company.

"We founded Appian around a common goal of connecting with entrepreneurs by treating them respectfully and their ideas thoughtfully," explained Phillip Dignan.

Appian has expanded the traditional venture capital process through its innovative, whole-company investment method which helps sharpen a portfolio company's business focus and connects industry resources to help accelerate success. This method involves thoughtful analysis of the target markets to develop a working thesis around the business opportunity, in addition to a disciplined and balanced assessment of a company's technology, team and strategy. The result is an objective evaluation of the business opportunity that facilitates successful investment syndication, spotlights the critical milestones throughout the company's lifecycle and identifies where Appian can connect resources.

Integral among Appian's resources are its "Connectivity Partners" who have extensive operational experience. "These are veteran entrepreneurs we know very well, and their willingness to help us evaluate local and out-of-state business opportunities and to provide timely and practical counsel to entrepreneurs greatly enhances our whole-company approach to investing," said Don Parsons.

These Connectivity Partners include Bill Bryant (Qpass/Netbot/Visio), Tim Enwall (Gartner/Solista), Bob Gill (MobileForce/ConferTech), Jim Lejeal (Oxlo/Raindance), Chris DeMarche (Verio/Nextel/OneComm) and Juan Rodriguez (Exabyte/StorageTek).

As former partners in nine Colorado-based venture capital funds, Appian's managing directors have been actively involved in many successful investments, including such notable companies as Verio, Veritas, Raindance, Voyant and Highground Systems. They have also held leadership positions in Colorado's venture community for numerous years. Dignan is a former general partner of Roser Ventures and a former director of the Colorado Venture Capital Association (CVCA). Parsons is a former general partner of The Centennial Funds, a founding board member of Colorado's chapter of the National Association of Corporate Directors and a past chairman of the CVCA. McKittrick served as a vice president of operations for The Centennial Funds. Soane was a founding general partner of Quest Capital Partnership and is CVCA's current chairman.

About Appian Ventures

Appian Ventures is a Colorado-based venture capital firm that invests in software and technology companies that enable "Applied Connectivity" -- the application and management of network connectivity to improve business performance. Appian's practice is to connect with entrepreneurs by treating them respectfully and their ideas thoughtfully. The firm's whole-company investment method sharpens a company's business focus and connects industry resources to help accelerate success. As former partners in nine Colorado-based funds, Appian's principals have been actively involved in many successful venture capital investments, including such notable companies as Verio, Veritas, Raindance, Voyant and Highground Systems. For more information, please visit www.appianvc.com.