Enterprise Web 2.0 Leader Nexaweb Closes $10 Million in Series B VC Funding.

Company Appoints Tech Industry Veteran Christian Heidelberger as CEO 

BURLINGTON, Mass. -- Nexaweb Technologies(R), Inc., delivering Richer, Thinner, Faster Enterprise Applications over the Web, today announced it has secured $10 million in Series B venture capital funding from Egan-Managed Capital, Masthead Venture Partners and Velocity Partners. This latest capital investment supports Nexaweb's accelerated growth in the Enterprise Web 2.0 and Rich Internet Application (RIA) markets and further strengthens its financial position, adding to its steady sales revenue stream. Additionally, Nexaweb today announced the appointment of Christian Heidelberger as Chief Executive Officer (CEO).

The CEO appointment and latest round of VC funding demonstrate Nexaweb's market momentum, evidenced by the success and pervasiveness of current customer deployments. Deployed at over 5,000 enterprises, Nexaweb is powering more business critical applications than any other Enterprise Web 2.0 solution. Nexaweb customers span multiple industries and include leading companies such as Best Western, Jefferies & Company, Inc., Hitachi Systems and Services (SAS) Japan, Siemens and SunGard.

"Web 2.0 will fundamentally impact core enterprise IT operations in a way that can only be compared to the shift from mainframe computing to client/server computing. Web 2.0 brings new possibilities to enterprise computing that will unleash a new wave of productivity increase and economic growth," said Coach Wei, Chairman and CTO of Nexaweb. "The marketplace has spoken, and they are choosing the Nexaweb Enterprise Web 2.0 solution. I'm confident Chris' addition to the management team and our Series B funding event will further extend our market leadership position and accelerate our global growth."

"The Web has had a dramatic impact on our employees' expectations. They want the internal applications they use every day to be as easy-to-use and visually-appealing as the Web-based applications they use at home. At the same time, their demands for performance and real-time data availability are as high as ever," said Stephen O'Leary, Senior Managing Director and Co-Head, Technology Investment Banking at Jefferies & Company, Inc. "Nexaweb Enterprise Web 2.0 solutions have set the groundwork to enable us to quickly modernize our applications and processes, and deliver them as Web-based applications without compromising our high-standards for security and reliability. Our experience with Nexaweb has been positive and we continue to build new applications on Nexaweb. We expect many other customers will benefit in the same way."

"Requests for Enterprise Web 2.0 solutions within the European marketplace are accelerating at a rapid pace," said Michel Dorochevsky, CTO at SOFTCON. "Like their peers in the United States, European enterprises have invested heavily in technology and created tremendous value for their business. These companies recognize that Enterprise Web 2.0 solutions are the nexus of Rich Internet Application and Service-Oriented Architecture technologies, and they understand the significant opportunity these solutions present to extract additional ROI from their technology assets while creating considerable productivity, cost-savings, and competitive advantages for their business. Nexaweb convincingly beat out its competition for a major Siemens AG web application project, and we're excited about replicating that success with new customers throughout Germany and across Europe."

Leveraging his more than 20 years of technology industry experience, Heidelberger brings to Nexaweb extensive software leadership expertise and vision, as well as a strong track record of success. He previously served as CEO and president at ChannelWave Software, leading the company from its inception, through $63 million of venture capital funding and several acquisitions to its sale to Click Commerce in 2005. After selling ChannelWave, Chris consulted for several start-up companies before joining Nexaweb. Chris also serves on a number of technology advisory boards.

"As a pioneer of RIA and Enterprise Web 2.0 solutions, Nexaweb has met the application development challenges of enterprises, independent software vendors, and system integrators around the world," said Chris Heidelberger, CEO at Nexaweb. "Demand for our Nexaweb Enterprise Web 2.0 solutions is greater than ever, and we have the team, the technology, and the eco-system in place to accelerate our leadership. I'm looking forward to working with Coach to leverage our early successes and drive profitable revenue growth."

2006: A defining year for Nexaweb

Corporate

-- Appointed Louis (Lou) J. Hutchinson, III as Vice President, Public Sector Sales

-- Nexaweb Japan K.K., a wholly owned subsidiary, demonstrated significant growth with new customers and partnerships

-- Opened new U.S. headquarters to accommodate growth driven by increasing customer demand, partner interest and product line expansion

Technology

-- Released Nexaweb Studio 2.4 and Platform 4.2, simplifying RIA and Enterprise Web 2.0 application development with enhanced user interface (UI) design and data integration capabilities that enable customers to build next-generation online business applications and concepts such as Enterprise Mash-ups and Collaborative Intelligence solutions

-- Delivered jRex(TM) 1.0 and aRex(TM) Developer Edition - Java- and Ajax-based, server-agnostic declarative XML UI engines that generate high-performance enterprise Web applications running in any browser

-- Demonstrated Nexaweb's commitment to open standards and open source by seeding the Apache XAP (extensible Ajax Platform) project (an incubating project at the Apache Software Foundation - http://incubator.apache.org/xap) with its initial code base and contributing many key engineers to the effort. Nexaweb aRex is based on this open-source framework.

Customers/Partners

-- Extended and secured numerous customer wins including EMC, Aflac, Jefferies, Safewire, Siemens, and SunGard

-- Partnered with Mitsubishi Electric Control Software Corporation (MCR) and Hitachi Systems and Services (SAS) Japan

-- Aligned with SQL Technologies of France and Benelux to jointly deliver RIA and Enterprise Web 2.0 technology to enterprises interested in migrating client/server applications to the Web

-- Partnered with TeamQuest to help customers in the United States, Middle East, and Africa improve data performance via the Internet

About Nexaweb

Nexaweb's Enterprise Web 2.0 (EW 2.0) solutions enable enterprises to rapidly deploy Richer, Thinner, Faster applications over the Web. With Nexaweb, building Ajax and Java UI applications that access legacy and service-oriented data systems is simple and doesn't require re-writing code. And only Nexaweb's EW2.0 solution is proven by more than 5,000 successful global deployments. Founded in February 2000 and rooted in the MIT community, Nexaweb is based in Burlington, Massachusetts. The company is privately held and funded by institutional investors. For more information, visit www.nexaweb.com or call [phone].

Nexaweb and the Nexaweb logo are registered trademarks of Nexaweb, Inc. All other trademarks and service marks are the property of their respective owners. No use of a third-party mark is to be construed to mean such mark's owner endorses Nexaweb products or services.