Data Backup and Disaster Recovery Provider EVault Unlocks Series B Funding; Appoints 30-year Veteran to Board.

Business Editors, High Tech Writers

WALNUT CREEK, Calif.--(BUSINESS WIRE)--Oct. 31, 2001

EVault, whose innovative disaster recovery and online data backup solutions are prompting organizations around the world to replace traditional tape-based systems, today announced that it has finalized a secondary Series B closing that includes a significant investment from River Cities Capital Funds.

EVault's $8.5 million second round was completed and announced in July of this year. EVault plans to use the investment to strengthen sales and marketing initiatives and expand its software development efforts.

According to Gartner Research, inextricable business process dependence on IT has increased economic vulnerabilities associated with downtime. No longer can enterprises wait the traditional two, three or more days for recovery of critical applications in the event of a disaster. EVault provides a comprehensive recovery solution that leverages the Internet to automatically store critical data in secure, off-site "vaults", and makes that data available for rapid recovery. EVault's solution is secure, reliable, fully-automated and cost-effective and is in use at over 500 businesses across the globe.

"We are continuing to seek investments in companies that hold the prospect to build enduring value. We believe that EVault is a company that presents such an opportunity," said Edward C. McCarthy, Principal of River Cities Capital Funds. "We strongly believe that EVault will continue to build the success that it has already demonstrated with an impressive list of customers."

30-year Business Vet Appointed to Board of Directors

In addition to the funding, EVault also announced the addition of Roger Nielsen, current chairman of TRANSMAP Corp., a leading geographic information services company and River Cities advisor, to its board of directors. Nielsen possesses over thirty years of new business development experience at companies ranging from large multinational firms to emerging entrepreneurial start-ups. Previously, Nielsen was executive vice president at Applied Innovation Corp., a leading telecommunications services company, and president and CEO at Monitronix Corporation.

"I'm proud to become associated with EVault, whose strong visionary management team and technology serves a great need for businesses today," said Nielsen. "EVault has enjoyed impressive growth over the past few years and I believe that growth will only continue in the months and years ahead."

"Today's investment by River Cities Capital Funds and the naming of Roger Nielsen to our board is testament to our traction and potential for the future," said Alston Noah, CEO and chairman of the board, EVault.

About EVault:

EVault provides innovative online data backup and disaster recovery solutions that replace antiquated tape-based systems. Founded in 1989, EVault's comprehensive data recovery solutions leverage the Internet to automatically store critical data in secure off-site "vaults", and make that data available for rapid recovery. Currently, EVault and its partners protect more than 500 businesses across five continents by managing 200 terabytes of recoverable data images for more than 2,400 servers. For more information, please visit http://www.evault.com.

About River Cities:

Based in Cincinnati, and with an office in Raleigh, N.C., River Cities Capital Funds is a $260 million family of venture capital funds focusing investment activity on high-growth industries located in the Midwest and Southeast. Areas of interest include Information Technology, Telecommunications, Healthcare/Life Sciences and Business Services. For additional information visit the Funds' website at www.rccf.com.