August Capital Announces $550 Million Dollar Fund; Fund Size Provides Unique Opportunity for Early Stage and Large Private Equity Technology Investments; Hornik and Mehra Named General Partners.

MENLO PARK, Calif. -- August Capital, a leading technology investment firm, today announced August IV, a venture capital fund with $550 million of committed capital. This new fund is specifically structured to allow the firm to continue focusing on their successful early stage venture capital and larger private equity investment strategy. August Capital now has $1.3 billion under management.

The firm also announced that David Hornik and Vivek Mehra were named General Partners in the fund. Mehra and Hornik join August Capital's General Partners: John Johnston, David Marquardt and Andy Rappaport. Mark Wilson is Administrative Partner.

Founded in 1995, August Capital is a premier technology investment firm actively investing in entrepreneurial teams throughout the information technology industries, including semiconductors, software, computer systems and the communication sectors. Successful company investments in August's portfolio include: Atheros (ATHR), Cobalt Networks (acquired by Sun Microsystems-SUNW), Crystal Decisions (acquired by Business Objects-BOBJ), Cygnus Solutions (acquired by RedHat-RHAT), Iridigm (acquired by Qualcomm), Listen.com (acquired by Real Networks (RNWK), Radlan (acquired by Marvel (MRVL), Seagate Technologies (STX) , Shopping.com (SHOP), Silicon Image (SIMG) and Tickle (acquired by Monster.com-MSTR). More recent investments include: Encentuate, Luxtera, Neopath, Six Apart, and Trumba. August III, raised in 2000, was a $450 million fund.

"We have already made three investments out of this new fund which is $100 million larger than our previous fund. August IV has the best team and Limited Partners in the business. We are also elated with the quality of the entrepreneurs with whom we are working to build these great new companies," commented Dave Marquardt, August Capital General Partner.

"The structure of our August Capital IV fund allows us the flexibility to capitalize early stage companies as well as to participate in attractive larger private-equity transactions, such as management buyouts. Our historical investments range from a few hundred thousand dollars to more than $100 million. We believe this capability is unique in our business," added Andy Rappaport, August Capital General Partner.

About David Hornik

David Hornik joined August Capital in 2000. Hornik sits on the boards of Nomis Solutions, Notiva, PayCycle, Perform Local, Six Apart, and Splunk Technology, and is a board observer of Actional Corporation. Hornik currently is a lecturer in Political Economy at Stanford Graduate School of Business. Prior to August, Hornik was most recently an intellectual property and corporate attorney at Perkins Coie, and prior to that was an attorney with Cravath, Swaine & Moore and Venture Law Group.

About Vivek Mehra

Vivek Mehra joined August Capital in 2003. Mehra currently sits on the boards of Neopath Networks and Encentuate and served on the board of Iridigm (acquired by Qualcomm). Prior to joining August, Mehra co-founded Cobalt Networks where he pioneered the concept of server appliances and grew Cobalt into a worldwide leader in the category, culminating in a successful IPO and subsequent acquisition by Sun Microsystems for $2B. Before Cobalt, Mehra held a number of technical and management positions at Apple, SGI, and Digital Equipment Corporation. Other early stage investments of his include NetFish (acquired by Iona) and Octane Software (acquired by Epiphany). Mehra was also an advisor to Perfigo (acquired by Cisco) and served on the board of Net6 (acquired by Citrix).

About August Capital

Founded in 1995, August Capital is a leading venture capital firm that invests in innovative technology companies. With more than 100 years of combined venture, industry, and operational experience, August Capital focuses on helping outstanding entrepreneurs build large sustainable companies. August Capital has $1.3 billion under management, and has invested in more than 60 companies including Atheros, Cobalt Networks, Iridigm, Seagate, Shopping.com, Silicon Image, and Tickle. Recent investments ranged from $500,000 to $130 million in information technology businesses from semiconductors to ecommerce. The firm's partners have previously invested in a number of groundbreaking technology companies, including Actel, Adaptec, Compaq, Grand Junction, Intuit, Linear Technology, Microsoft, MMC Networks, Sun Microsystems, Sybase, Symantec, and Visio. August Capital is located in Menlo Park, California. For more information, please visit: www.augustcap.com.