Bocada Achieves Record Results in 2004; Bocada Triples Annual Revenues, Beats Customer Satisfaction Goals and Raises $9.5 Million for Business Expansion.

BELLEVUE, Wash. -- Bocada, Inc., the leading provider of data protection performance management software, today announced record results for its fiscal year ended December 31, 2004. In addition to tripling revenue and exceeding customer satisfaction objectives, Bocada closed $9.5 million in its third round of funding led by Partech International.

"While I am thrilled with our revenue growth in 2004 and our increased market lead," said Mark Silverman, CEO of Bocada, "it is the Bocada team's ability to continually exceed customer expectations that drove our results in 2004 and will do so again in 2005."

Customer Success

Bocada software has been deployed by more than 150 enterprise organizations to ensure the cost-effective protection of more than 400,000 mission-critical servers distributed worldwide. Everyday, thousands of IT and business managers rely on Bocada solutions to radically improve data restorability, reduce data protection costs and prove compliance with policies and regulations. Bocada customers have improved their data protection success rates from less than 60% to more than 99.9%, and reduced data protection costs by hundreds of thousands of dollars per month.

"Bocada delivered on their promises to Virgin Atlantic in 2004," said Tim Graham, Team Leader, Data Systems Management at Virgin Atlantic Airways. "Their customer service responded in a timely manner when we needed help, and most importantly, their product helped us achieve great results in our data protection operations. Few companies in IT deliver this kind of value as well as support for their products."

Financials

Net invoiced sales for 2004 more than tripled from 2003. In addition, average initial license purchases per new customer increased by more than 150% year over year. Annual support renewals for Bocada software exceeded 95% in 2004, and repeat orders from existing customers remained exceptionally strong.

Bocada closed a $9.5 million Series C Preferred stock financing in the 4th quarter of 2004. The funds will be used to accelerate the expansion of its business in 2005, including increased investment in distribution and marketing. The Series C round was led by new investor Partech International, a leading international venture capital firm with $650 million under active management. Partech has a 20-year track record of assisting its portfolio companies to become global leaders. Some of Partech's investments include: Ascend Communications, Alvarion, Business Objects, Cadence, CSG Systems, Digital Island, Informatica, Pentasafe and Vignette.

"We are delighted to join the Bocada team," said Glenn Solomon, General Partner at Partech International. "We have been tracking the progress of Bocada for the past few years as part of our focus on enterprise software, and we have been extremely impressed by their team's ability to consistently exceed their aggressive business objectives. Data protection intelligence is emerging as a huge category -- nearly every large enterprise we've talked to over the past 18 months has told us that getting control over their data and ensuring recoverability is at the top of their priority list. This trend is extending rapidly to Europe as well, and we plan to assist Bocada in leveraging their leading position in the U.S. market to become the dominant player worldwide."

Existing investors, including Madrona Venture Group, Second Avenue Partners, Guide Ventures and Catamount Ventures, all participated in the round.

Product Enhancements

Bocada added powerful new capabilities to its award-winning BackupReport(R) suite in 2005, including substantial scalability enhancements, support for the latest storage and library management platforms, and automated service level agreement (SLA) controls for IT staff and management. "From inception, Bocada has listened to the needs of customers with globally distributed, heterogeneous, high-demand environments," said Drake Pruitt, Bocada Vice President of Marketing. "Our results show that we are doing a great job of translating those needs into product enhancements that deliver real customer value."

BackupReport supports data protection process and service level management across all currently released versions of the leading enterprise backup and library management applications, including IBM Tivoli Storage Manager, VERITAS Netbackup and BackupExec, Legato Networker, CA Brightstor Enterprise ArcServe, HP Omniback, and Commvault Galaxy, regardless of platform or operating system.

Distribution

In 2004, Bocada doubled its direct sales and customer support organization for the global enterprise market. In addition, the company built inroads into the managed and outsourced services markets, signing formal agreements and generating initial sales with three of the top five global IT outsourced services organizations. Bocada also added extensive experience to its sales and services leadership team with the addition of John Wilkerson as Executive VP of Global Sales, Services and Support; Jon Fraleigh, VP of U.S. Sales, and Michael Bauer, VP Partner and Channel Sales. In 2005, Bocada will continue to make substantial investments in both direct and partner sales, including rapid expansion of its organizations supporting the U.S. federal government and key partners and customers in Western Europe.

About Bocada

Bocada is dedicated to ensuring that data protection services, systems and processes meet organizational objectives for quality, cost and compliance. Today, leading corporations and government organizations worldwide trust Bocada to improve data recoverability, reduce the cost of data protection, and ensure compliance with policies and regulations. Bocada solutions have been deployed at more than 150 market-leading customers and partners worldwide, including Amgen, BankOne, Cap Gemini Ernst & Young, SBC, Sprint, Unilever and Xerox. Bocada is a private company headquartered in Bellevue, Washington.

Bocada and BackupReport are registered trademarks of Bocada, Inc.