Extraprise Raises New Round of Venture Financing; Candover Investments and First Union Investors Join Prestigious Investor Group.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--Oct. 2, 2000

Extraprise, one of the world's fastest-growing e-services firms, today announced that it has closed a new round of venture financing totaling $21.7 million. This brings the total venture investment in the company to $63 million. London-based Candover Investments Plc and one of Extraprise's existing investors, First Analysis Venture Capital, led the round with participation from First Union Investors. These three firms were joined by all of Extraprise's other existing investors, including Weiss, Peck and Greer; Meritech Capital Partners; Redpoint Ventures; Bessemer Venture Partners; One Liberty Ventures and Commonwealth Capital. Extraprise will use the funds to accelerate staff development and fund its continuing growth worldwide.

"Extraprise's approach to developing business models that unify online and offline customer relationships has become the focal point of today's market," said Douglas Fairservice, Deputy Chairman of Candover Investments. "Extraprise recognized the importance of building integrated businesses when its competitors focused solely on creating digital businesses. This vision in combination with the firm's proven ability to deliver solutions for global organizations makes Extraprise the premier advocate for the customer in the e-services market."

Extraprise provides a complete range of strategy, creative and technology services that enhance customer relationships and drive revenue growth. The company's services create a unified view of customers across all marketing, sales and customer support touch points. The services enable Extraprise clients to find new ways to create value across channels, geographies, operating units and product lines.

"As an early investor in Extraprise, we have been consistently impressed by the quality of Extraprise's people and its ability to drive substantial, tangible value for clients. The Internet has become an essential channel for doing business, but it is not the only channel. Extraprise understands that the real opportunity for value creation lies in leveraging people, process and technology to restructure business activities and maximize customer success across every channel," said Mark Koulogeorge, First Analysis Venture Capital.

"The e-services market will continue to show explosive growth despite a short-term correction. We view eCRM services as one of the most important sectors in the e-services space. Extraprise has staked out a leadership position in the market with a combination of management depth, innovative services and solid partnerships," said Tom Roberts, head of IT services investment banking for First Union.

"We are pleased by the support from our existing group of blue-chip investors, including First Analysis, and are very happy to add Candover and First Union to the team. Candover brings us a world of experience in the accelerating European market," said Extraprise Chairman and CEO Ken Marshall. "First Union has a unique understanding of the e-services market and will help our competitive positioning. We have been fortunate to attract a world-class group of employees and this latest investment lets us accelerate our hiring and develop a new generation of leaders from within the company."

Extraprise continues to see strong demand for its services. Sequential growth rates (quarter over quarter) continue to average between 25-30%. Extraprise's international organization has grown 50% since its inception in April 2000, and represents 25% of corporate revenue.

About Candover Investments plc

Candover was established in 1980 and to date has led some 87 private equity transactions with a total value of (pound)5.6 billion. Since 1980, 31 of the companies backed have achieved successful public offerings and a similar number have achieved highly profitable trade sales. Candover is on the Web at www.candover.com.

About First Union Corporation

First Union Corporation (NYSE - FTU) is a leading provider of financial services to more than 16 million corporate and retail customers throughout the United States. It is the nation's sixth largest bank holding company with assets of $258 billion as of June 30, 2000. First Union Securities is the trade name under which First Union Securities conducts its investment banking, merger and acquisition, asset management and mutual fund, brokerage and insurance businesses. First Union is on the Web at www.firstunion.com.

About First Analysis Venture Capital

First Analysis Venture Capital (www.firstanalysisvc.com) is a leading early-stage venture investor. With more than $600 million in capital under management, FAVC has funded over 150 successful companies, providing the infrastructure for an enhanced business-to-business environment. FAVC plays an active role in developing and scaling early-stage companies by providing entrepreneurs with assistance in strategy and corporate development, business development and alliances, as well as financing events. FAVC's investment professionals are located in Chicago and Silicon Valley. Other FAVC investments include: Exodus Communications Inc. (Nasdaq: EXDS), Ariba Inc. (Tradex Technologies; Nasdaq: ARBA), and RSA Security Inc. (Nasdaq:RSAS).

About Extraprise

Extraprise is an international e-services firm that empowers clients with innovative growth strategies that span online and offline channels. The company delivers strategy, creative and technology solutions to major corporations worldwide. Extraprise has its headquarters in Boston, and offices in Amsterdam, Chicago, Dallas, London, New York, San Francisco and Washington, DC. Extraprise is on the Web at www.extraprise.com.

Extraprise is a registered trademark of Extraprise Group, Inc.