Bowstreet Receives $20 Million in Second Round of Venture Funding.

PORTSMOUTH, N.H.--(BUSINESS WIRE)--Aug. 25, 1999--

Integral Capital Partners and Pequot Capital Management Join Existing Investors Charles River Ventures, Kleiner Perkins Caufield &

Byers and Matrix Partners

Bowstreet Software, Inc., an innovator in business-to-business e-commerce solutions, today announced that it has successfully completed a $20 million second round of funding, including new investments from Integral Capital Partners (Menlo Park, Calif.) and Pequot Capital Management (Westport, Conn.). Existing investors Charles River Ventures, Kleiner Perkins Caufield & Byers and Matrix Partners have all increased their financial commitments to Bowstreet (www.bowstreet.com). The investment announced today adds to the $7.6 million Bowstreet raised in its first round, bringing the total investment to $27.6 million.

Bowstreet will use the new funds to accelerate the introduction of products based on its Web Services Architecture, an e-business solution that is already in use by several Fortune 500 customers. Additionally, Bowstreet has formed relationships with some of the world's leading technology vendors, including IBM, Microsoft, Novell and Sun-Netscape Alliance, who support Web Services Architecture for use with their directory products. Using the Web Services Architecture, companies can create, deploy and manage hundreds or thousands of highly customized Internet channel relationships over extranets - on the fly and with minimal programming.

"We are convinced that Bowstreet's products will revolutionize the way companies conduct e-business. We look forward to being a torch-bearer in this revolution," said Roger McNamee, general partnreet's Web Services Architecture solutions delivent from Integral and Pequot, along with our exponse to our beta products and vision from custying Around Bowstreet's Web Services Architectuowstreet's solutions to accelerate their transinternet sales and distribution channels, increased revenue opportunities, reductions in the cost of channel management, and expansion of channel reach to thousands of partners in a matter of months versus years.

Bowstreet's early pilot customers include Merrill Lynch, Nielsen NetRatings, Thomson Financial Services, Travelers Property & Casualty and others. Bowstreet will be releasing its first products based on Web Services Architecture later this quarter.

Bowstreet's Web Services Architecture has been endorsed by some of the largest technology companies in the world as a "killer application" for directory services and a foundation of future e-business. IBM, Microsoft, Novell and Sun-Netscape Alliance have all announced relationships with Bowstreet to support Web Services Architecture with their directory products. Web Services Architecture also supports other LDAP directory products such as Oracle.

Bowstreet has also taken a leadership role in expanding the use of directories as the core of e-business. Bowstreet, together with IBM, Microsoft, Novell, Oracle and Sun-Netscape Alliance, are the founding members of the Directory Services Markup Language (DSML) working group, which is establishing a standard for representing directory services information in XML. DSML will make e-commerce easier for companies that use directories and need cross-company business processing.

About Integral Capital Partners

Founded in 1991, Integral Capital Partners (www.kpcb.com) is a family of investment partnerships created by portfolio managers Roger McNamee and John Powell in collaboration with the venture capital firm Kleiner Perkins Caufield & Byers (KPCB) and the investment bank Morgan Stanley Dean Witter. Integral pioneered the crossover style of investing that combines expansion stage venture and growth stage public companies in a single pool. Integral has invested in 40 venture stage enterprise software companies, including Inktomi, Pivotal Software, Informatica, Brio Technology, E.piphany, Allegis, Visio, Healtheon, Vitria, and Agile Software.

About Pequot Capital Management, Inc.

The Pequot Private Equity Funds (www.pequotcap.com) is the private placement/direct investment arm of Pequot Capital Management, Inc. The Pequot Private Equity Funds invest in public and late-stage private companies in information technology, telecommunications and healthcare. Pequot Capital Management, Inc. is a research-intensive investment firm with more than $6 billion in assets under management. Pequot Capital, which is 100% employee-owned, is headquartered in Westport, Conn., with offices in New York City and California.

About Bowstreet

Ranked as one of the top e-commerce computing start-ups in the country at the recent Enterprise Outlook conference, Bowstreet was founded to revolutionize the way companies with hybrid sales and distribution channels conduct e-business over extranets. The company's Web Services Architecture combines XML and directory services technology to provide a robust foundation for truly dynamic, frictionless B2B e-commerce. Bowstreet is led by a world-class management team and has raised $27.6 million from five leading venture capital firms: Charles River Ventures, Integral Capital Partners, Kleiner Perkins Caufield & Byers, Matrix Partners and Pequot Capital Management. Bowstreet's Web Services Architecture solutions work with and leverage leading directory products from companies such as IBM (NYSE: IBM), Microsoft Corporation (Nasdaq: MSFT), Netscape Communications Corporation, Novell Inc. (Nasdaq: NOVL) and Oracle Corporation (Nasdaq: ORCL). For more information, visit Bowstreet's Web site at http://www.bowstreet.com or contact Bowstreet at 603-436-9100.