Appshop Announces Funding of $15 Million in Series B Round; Validation of Application Service Provider's Business Model Results in Additional Funding.

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Nov. 26, 2001

Appshop, Inc., the largest independent Oracle (Nasdaq:ORCL) Application Service Provider (ASP), announced today receipt of $15 million in its second round of funding.

New investor, 3i, a leading international venture capital company, led the round that included previous investors, El Dorado Ventures, Menlo Ventures, Osprey Ventures, RSA Security and Walden TDF. In conjunction with the round, Appshop named J. Sanford (Sandy) Miller from 3i to its board. Sandy brings over 25 years of investment related experience with technology growth companies.

"We invested in Appshop because of the strong management team, winning business model, backing by top tier venture firms and revenue momentum," stated Sandy Miller, managing director with 3i. "We see Appshop as the clear winner in the managed applications market and believe they have a huge opportunity to grow their business for continued success. We are excited to join their team and help support their global expansion."

Appshop plans to use the funds to expand its operations globally, enhance product offerings, provide additional value-added services for existing customers, and to increase their sales and marketing efforts. "This is an important milestone for Appshop," stated Ravi Kulasekaran, CEO, Appshop. "Despite tough economic times, Appshop was able to raise money because of its dominance in the ASP market."

Doug Carlisle, managing director, Menlo Ventures is a board member and one of Appshop's original investors. He said, "Appshop's quarter upon quarter growth is truly impressive which is why we continue to reinvest in Appshop."

Recently, industry analysts have recognized Appshop for having a more efficient ASP business model because it takes a single-vendor approach to minimize integration issues. According to Phil Wainewright of ASPnews.com, "Arguably the most successful of all enterprise ASPs, Appshop has sustained its progress by a single-minded focus on an all-Oracle product line."

About Appshop

Appshop is a leading Application Service Provider (ASP) that focuses on providing the complete enterprise solution using Oracle's E-Business Suite in a hosted environment for a monthly fee. Appshop's end-to-end integrated managed solutions include professional services, hosting and environment management, ongoing maintenance and functional and technical 24/7 support. The company offers a full range of managed services for enterprise business applications such as customer relationship management, e-commerce, enterprise resource planning, finance, human resources, manufacturing, marketing, product development, supply chain management and transportation. Appshop is an Oracle Certified Solution Partner headquartered in Fremont, Calif. with regional offices across the U.S. and subsidiaries in Bangalore, India and Zhuhai, China. Additional information about Appshop is available at www.appshop.com.

About 3i

3i is a leading international venture capital company with U.S. offices in Palo Alto, Calif. and Waltham, Mass. Operating since 1945, 3i has invested worldwide over $19 billion through its 16-country and 3-continent network of 36 offices. 3i leverages this worldwide presence to add value to its portfolio companies and investment partners. Outside the USA, 3i invests broadly in private equity and venture capital. In the United States, 3i concentrates on technology investments in companies with the potential to be leaders in their markets. Visit 3i and its portfolio at http://www.3ius.com.

Note to Editors: Appshop is a trademark of Appshop, Inc. Oracle is a registered trademark of Oracle, Inc. All other trademarks are owned by their respective companies.