Biztro, Inc. Raises $33.9 Million in Funding; Financing to Enhance Small Business Platform and Expand Distribution Network of Strategic Partners.

Business Editors, High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 2, 2000

Biztro(TM), Inc. (www.biztro.com), a leading provider of online operations services for emerging businesses, today announced it has successfully secured $33.9 million in its third external financing round, bringing total funding to date to more than $47 million.

For its third round, Biztro has drawn investments from an impressive group of venture capital firms and leading corporations serving small businesses, including the following:

-- AC Ventures, the venture capital unit of Andersen Consulting.

Andersen Consulting is an $8.9 billion global management and

technology consultancy, with more than 65,000 people in 48

countries.

-- Bank of America, with $656 billion in assets, is the largest

bank in the United States. It has full-service operations in

21 states and the District of Columbia and provides financial

products and services to 30 million households and to more

than 1.7 million small businesses.

-- BellSouth is a $25 billion communications services company. It

provides telecommunications services, Internet, data and

e-commerce applications, wireless communications,

entertainment services, and online and directory advertising

to nearly 39 million customers in 19 countries worldwide.

-- Internet HealthCare Group (www.IHCG.com), a leading $200

million business-to-business e-commerce company focused on

e-healthcare and e-insurance through a network of partner

companies. As the principal company representing the

healthcare segment for Internet Capital Group, a leading B2B 

e-commerce company, IHCG provides operational assistance,

capital support, industry expertise and a strategic network of

business relationships to maximize the long-term market

potential of its partner companies.

-- Marsh & McLennan Capital is a global private equity firm with

over $2.5 billion in assets under management. It is a

subsidiary of Marsh & McLennan Companies, Inc. (MMC), a global

professional services firm with annual revenues exceeding $9

billion. MMC is the parent company of Marsh, the world's

leading risk and insurance services firm; Putnam Investments,

one of the largest investment management companies in the

United States; and Mercer Consulting Group, one of the world's

largest consulting firms.

-- SOFTBANK Venture Capital, a venture capital fund managing more

than $2 billion, with investments focusing primarily on

early-stage Internet companies.

-- VerticalNet, owner and operator of 56 industry-specific

markets designed as online business-to-business communities.

"Millions of small businesses will now have access to the Biztro platform through our partners," said Navin Chaddha, chairman and CEO of Biztro. "Small business owners across the U.S. can take advantage of innovative Web-based applications through trusted companies like Bank of America and BellSouth."

Jim Walker, chief financial officer for Biztro, added, "This round of funding will enable Biztro to significantly grow our partner and customer base as well as expand the depth of our product offering over the next year. Our investors have extensive experience and resources in the small business and technology industries, which will prove to be invaluable to Biztro."

"It is impressive that so many blue chip companies and venture capitalists have placed their confidence in Biztro's business model," said Kneko Burney, director of markets and computing for Cahners In-Stat Group. "In an exploding market, Biztro's Web-based applications that 'e-enable' traditional business operations could make the company a strong force of change in the small business segment."

Biztro's Web-based Business Operations Platform(TM) is designed to ease administrative burdens for small business managers and employees while dramatically increasing their buying power. The platform offers a range of integrated applications for management of benefits, payroll, procurement processes and human resource functions. Biztro outsources the platform to a network of channel partners including leading corporations that serve small businesses.

About Biztro, Inc.

Biztro, Inc., headquartered in Santa Clara, Calif., was founded in March 1999 to address the fastest-growing segment of the B2B eCommerce and eServices marketplace: small business. Biztro is transforming the way small businesses run their operations by integrating leading service providers into its powerful Business Operations Platform, which dramatically increases small business buying power and improves back-office administration. Biztro distributes its Business Operations Platform through a network of strategic partners. Biztro's supplier partners, key to Biztro's business model, include best-of-class companies in various industries that service the small business market. Biztro is funded by leading organizations, including Andersen Consulting, Bank of America, SOFTBANK Venture Capital and Marsh & McLennan Capital. For more information, visit http://www.biztro.com or contact Biztro public relations at [e-mail].