Darwin Networks Secures Kentucky's Largest Venture Capital Financing With Closing Of $91 Million Investment.

Business Editors

LOUISVILLE, Ky.--(BUSINESS WIRE)--Sept. 18, 2000

Darwin Networks, a leading provider of wireless and wireline high-speed Internet access and private, wide-area networking (WAN) solutions, today announced that it has closed a $91 million second round of venture capital funding, which the company and its investors believe is the single largest venture capital package in Kentucky's history. Today's announcement brings Darwin Networks' total venture capital financing to approximately $120 million raised in just over a year. The company raised $29 million in a first round of financing in August of 1999.

The Louisville-based company raised these funds from a worldwide group of investors. Chrysalis Ventures (Louisville, KY) led Darwin's first round of venture capital financing. Fremont Group of San Francisco, working closely with Chrysalis Ventures, led the second round. Other investors in this current "B" round include: Chrysalis Ventures, Paul Allen's Vulcan Ventures (Seattle), Richland Ventures (Nashville), THK Private Equity (San Francisco), River Cities Capital (Cincinnati), National City Equity Partners (Cleveland), MF Private Capital (Boston), Windcrest Partners (New York), Mayfair Capital (Louisville), Bailey Capital (Palm Beach), UOB Venture Investments (Singapore), Peak Capital (New York), Iceberg Ventures (Louisville), Lehman Brothers (New York), and PNC Investment Corp. (Pittsburgh).

"This capital investment is a tremendous vote of confidence in Darwin Networks on behalf of the very distinguished and sophisticated group of investors," said Jon Spector, Darwin Networks' CEO. "It will enable us to continue our ongoing geographic expansion across the country and stay on target towards our goal of becoming the nation's leading high-speed Internet access and private wide-area networking services provider."

"This is an incredibly important announcement - not just for Darwin Networks, but for the entire entrepreneurial community in Louisville," said Steve Higdon, president and CEO of Greater Louisville Inc. "This sends a message that an outstanding company with a good idea and a solid business plan can attract major funding to Louisville. Darwin Networks is one of the brightest stars of our New Economy."

Concurrent with the announcement of this new round of funding, Darwin Networks announced a new organizational structure. Effective immediately, the company is moving from a vertical market-based structure to a geography-driven structure. As such, Darwin Networks is creating multi-functional offices in each of its 12 core markets: Louisville, Atlanta, Austin, Cincinnati/Dayton, Dallas, Miami/Ft. Lauderdale, Philadelphia, San Diego, Seattle, Tampa/St. Petersburg, Walnut Creek/San Francisco and Washington, DC/Baltimore.

Each office will cross-sell and deploy all of the company's products to each of its customer segments, as well as service all of the company's existing customers in those markets and elsewhere in its region. As part of the reorganization, Darwin Networks has made the following changes among its senior management staff:

-- Pat Mulloy, who joined Darwin Networks in June as the company's Chief
Development Officer, will become the company's new Chief Operating Officer,
reporting to Spector.

-- Larry Pitterman, formerly Chief Operations Officer, will become President of
the East Region, based in New York City.

-- Glenn Meyer will serve as President of the West Region, based in Seattle,
while continuing to oversee the company's activities targeted at the MDU
market.

-- Joel Coleman will serve as President of the Central Region, based in
Louisville, while continuing to oversee the commercial market.

-- David Wigglesworth, President of the Hospitality Division, will also manage
the Kiosk Solutions Division - formerly the Public Access Division.

The organizational shift is a continuation of Darwin Networks' recent high growth. Since the beginning of the year, the company has grown from 175 employees to over 600 nationwide. Also, last month, the company opened its new customer service center at 13400 Nelson Miller Blvd., in the eastern suburbs of Louisville.

In the company's efforts to continually improve its technical and operational services in Louisville, Darwin Networks recently expanded its 24-hour network operations center in the PNC Building downtown and is rebuilding its point-to-point, fixed wireless, private WAN infrastructure throughout the city.

About Darwin Networks:

Darwin Networks provides wireless and wireline high-speed Internet access and private, wide area network (WAN) solutions to small and medium-sized businesses in office, flex, industrial and retail properties; apartment, condominium and student housing complexes; and hotels. The company serves, or has agreements in place to serve, approximately 1,500 locations in 48 states and Canada. The Louisville, Kentucky-based company offers a full complement of marketing and support services, including training, to assist business owners and property managers in marketing and implementing these new services.

Additionally, Darwin Networks is the nation's premier provider of public Internet access kiosks. To date, the company has installed hundreds of units throughout the country, in hotels, restaurants, tourist/travel centers, cafes, airports and more. The company also produces, installs and operates custom kiosks, specifically designed for retail/eCommerce, communications, entertainment, advertising and other uses.

Darwin Networks has corporate offices in Louisville, KY, Boston, MA, San Diego, CA, Seattle, WA and Walnut Creek, CA. For more information about Darwin Networks, please visit www.darwin.net.