Chase Capital, Frontier Ventures, MediaOne Ventures, and Others Invest $25 Million in Narus.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--June 24, 1999--

Narus Inc. announced today that it has raised $25 million in a second round of funding.

This round was led by Chase Capital Partners and includes MediaOne Ventures, a division of MediaOne Group, and Frontier Internet Ventures, Inc., as well as the two original investors in Narus -- Mayfield Fund and Walden Ventures. This brings total investment in Narus to more than $30 million.

The new funds will be used for the development and marketing of additional products enabling Internet service providers (ISPs) and telecommunications companies to broaden their Internet service offerings -- such as voice over IP (VOIP), video, hosted applications, fax services, e-mail and others -- and build sustainable businesses based on these offerings.

"Narus is playing a pivotal role in the evolution of the Internet. Emerging applications and services that deliver customized information, communication, commerce, and entertainment demand comprehensive information about a customer's behavior and preferences," said Jonathon Heiliger, senior vice president of Frontier Ventures. "Narus supplies IP service providers with the essential platform technology and applications enabling them to shift from thinking in a bandwidth-centric world, to focusing on service options and delivery."

Narus is the pioneer of Semantic Traffic Analysis technology, which captures comprehensive network and application-level customer usage information directly off high-speed Internet (IP) networks and delivers this information to network providers. Narus also offers software solutions that transform the unique data gathered by Semantic Traffic Analysis into valuable marketing knowledge and operational insight.

One of the first of these applications is Narus Intelligence, a decision support solution that provides real-time customer usage information and analysis to IP service providers. With such detailed information in hand, network providers are able, for the first time, to understand customer behavior and service preferences and offer new services based upon usage patterns.

"Narus clearly understands that for the Internet to grow, thrive, and become as commonplace as traditional telecommunications today, service providers must understand everything they can about how customers use networks, and what new services will be most attractive to them," said Tom Cullen, president of MediaOne Ventures. "Also, we believe Narus's technology has the potential to provide substantial insight and value to significant Internet portals, major e-commerce sites, and the enterprise market."

In May, Narus also introduced Narus Billing Mediation. The Narus Billing Mediation product enables providers of IP services to price and bill their services based upon their usage or value. As the number and diversity of IP services continues to increase, Narus Billing Mediation gives service providers the flexibility to offer compelling pricing and service bundling options. For example, service providers can now charge a small flat rate for basic access and e-mail, but also capture usage details that let them effectively price and bill for value-added service such as faxing, voice, or video teleconferencing.

Narus, the pioneer of Semantic Traffic Analysis, is the only company to meet the need for capturing and providing the business-critical information and understanding that providers of Internet services need to build and sustain profitable businesses. Narus applications enable ISPs, telecommunications companies, content providers and other providers of Internet services to identify, target, and deliver high-value IP services -- such as voice, fax, and video over IP, media streaming, applications hosting, unified messaging, and many others -- and capture the value of these services through value-based billing.

Narus has partnerships with Portal (NASDAQ: PRSF), Sun Microsystems (NASDAQ: SUNW), Solect Technology Group, Amdocs Ltd. (NYSE: DOX), and others. To date, the company has raised more than $30 million from Frontier Internet Ventures, Inc., a subsidiary of Frontier Communications (NYSE:FRO), MediaOne Ventures, a division of MediaOne Group (NYSE:UMG), Mayfield Fund, Walden Ventures, Chase Capital and others. The company's Web address is www.narus.com.

Note to Editors: All trademarks and registered trademarks are those of their respective companies.

The text of this release as well as additional background information may be downloaded from Roeder-Johnson's Web site at www.roederj.com.