Archive Inc. Launches with $18 Million in Series A Financing.

Business Editors/High-Tech Writers

CULVER CITY, Calif.--(BUSINESS WIRE)--Oct. 23, 2000

Founders of Stamps.com Form New B2B Venture, Receive Funding from Mayfield Fund, VeriSign, Oracle, EMC, Silicon Valley Bancshares,

InnoCal Venture Capital and Rare Ventures

Archive Inc. (www.archive.com), a new application service provider which empowers customers to aggregate and replay B2B transactions, today announced it has raised $18 million in equity financing from Mayfield Fund; VeriSign (Nasdaq:VRSN); Oracle (Nasdaq:ORCL); EMC (NYSE:EMC); Silicon Valley Bancshares, the holding company for Silicon Valley Bank (Nasdaq:SIVB); InnoCal Venture Capital; and Rare Ventures, the venture capital arm of Rare Medium Group Inc. (Nasdaq:RRRR). The financing will be used to further Archive's aggressive growth in the burgeoning B2B horizontal services market by enhancing its service and technology capabilities, as well as funding sales and marketing efforts.

"Finalizing this round of funding with such high-caliber investors and partners like VeriSign, Oracle, and EMC is a strong vote of confidence for Archive," said Jim McDermott, co-founder and CEO of Archive. "When we founded the company ten months ago, we knew we had an offering that would provide enormous value to companies involved in B2B e-commerce. This funding will allow Archive to accelerate our technical development and continue building the world's best information management network."

Archive's information management services allow customers to aggregate and replay B2B transactions step-by-step for audit, real-time access and in-depth analysis of e-business activity. Current B2B commerce platforms and existing systems are not equipped to preserve the terabytes of data produced in online transactions. Archive seeks to capitalize on this burgeoning market by offering a scaleable XML engine with a highly available, distributed network to securely index and contextualize transaction information.

GartnerGroup estimates that B2B e-commerce revenues will total more than $1.7 trillion by 2003. All these online transactions make it crucial for companies to maintain their records accurately.

"While it is possible and common for enterprises to capture and store a record of the final transaction, in many cases the processing that produced the final transaction cannot be recreated," said Mark Nicolett, research analyst at GartnerGroup. "Organizations that are developing transaction-oriented e-business applications need to consider the possibility of severe legal and regulatory consequences caused by inadequate transaction-content management functions."

Addressing Significant Market Opportunity

International Data Corporation estimates that one in nine online transactions ends in error. The cost of resolving these discrepancies can increase transaction costs by 300 percent or more. Archive has created an independent network for real-time access to past and present transaction data, reducing that risk and increasing the efficiency of e-commerce.

"Archive is the first service that effectively targets the market demand for B2B transaction content management services," said Robin Vasan, general partner at Mayfield Fund. "Archive's management team is already a proven winner from their days at Stamps.com and this funding is a great first step toward creating another successful venture."

"As an ever-increasing number of companies transact business online, the ability to archive B2B transaction data for future analysis, reporting, or auditing will become critical," said Matt Mosman, senior vice president, Oracle Corp. "We're pleased to support Archive, which plans to provide these transaction content management services to the B2B market."

About Archive

Archive provides information management services to empower its customers with real-time aggregation and step-by-step replay of their B2B transactions for in-depth analysis of e-business activity. Established in December 1999 by the four founders of Stamps.com, Archive's investors and partners include Mayfield Fund; Oracle (Nasdaq:ORCL); EMC (NYSE:EMC); Silicon Valley Bancshares, the holding company of Silicon Valley Bank (Nasdaq:SIVB); InnoCal Venture Capital; and Rare Ventures, the venture capital arm of Rare Medium Group Inc. (Nasdaq:RRRR). Archive is privately held and located in Culver City, Calif. For more information on Archive, visit the company's Web site at www.archive.com.

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