Ignition Corporation Off to a Fast Start; Former Microsoft and McCaw Cellular Executives Invest In A Number of Wireless Internet Start-Ups in First Eight Months of Operation.

Business Editors, High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 17, 2000

Company To Highlight New Investments, New Executives and

Powerful Partnership Model of Venture Investing 

at Reception in San Francisco 

Ignition Corporation (www.ignitioncorp.com), an investment company designed to fund, mentor and build 'wireless Internet' start-ups and founded by former Microsoft and McCaw Cellular senior executives, today announced that in its first eight months of operation it has invested in a number of leading wireless Internet start-ups.

The announcement came at a reception being held in San Francisco. Thus far, Ignition has announced providing lead funding for etrieve, Avogadro and UIEvolution. In coming months several additional investments will be announced. Today, the company also announced that Steve Hooper, former chief executive officer of Nextlink Communications, Teledesic, McCaw Cellular Communications and AT&T Wireless Services, has joined Ignition full time as a managing director and partner.

The Ignition mission is to help make the wireless Internet an integral part of daily life. Ignition was founded on the premise that a group of industry pioneers, with extensive operational experience, armed with a vision, could build deep partnerships with great entrepreneurs to help them be successful and together help build the new wireless Internet industry.

Ignition has developed a unique investment model. This model is based on three simple tenets. First, an exclusive focus on wireless Internet and a highly selective number of investments. Second, deep, active engagement of its unparalleled team of operational leaders and technical experts with each of its partner companies. And third, deep partnership with key innovators across the wireless value chain.

"We're company builders. We decided to focus on one area -- wireless Internet -- and a limited number of ventures because it excites us and because with this level of focus we can provide a lot deeper help," said Brad Silverberg, chairman and CEO for Ignition. "The last eight months have been the most fun I've had in years. It's great to be working with such talented entrepreneurs."

True to plan, Ignition has made several investments to date -- all in the wireless Internet space. etrieve Inc. (www.etrieve.com), Ignition's first publicly announced investment, continues to gain momentum. Launched in June, etrieve has announced the adoption of its mobile office information solution for the enterprise by several companies. etrieve has secured several multi-seat license corporate accounts including The Standard Insurance Company, InFocus Corporation, Silicon Valley Bank, Perkins Coie LLP and Radware. In September, etrieve was named to the Unstrung 25 list of most exciting wireless companies.

Last week, Ignition announced funding of UIEvolution, Inc. (www.uievolution.com). An Ignition founder, Satoshi Nakajima, started this company with the support and guidance of his Ignition colleagues. UIEvolution is dedicated to making the wireless Internet easier and more fun to use. The company is initially developing a new approach to wireless gaming, starting with a platform architecture and games for the mobile phone.

The company's most recently announced investment is Seattle-based Avogadro (www.avogadro.com), whose vision is to build technology that connects the wired and wireless Internet, enabling businesses to provide a richer, better experience for customers across all their Web devices. Avogadro has successfully attracted a world-class team. Its founders include Thomas Reardon, CEO, a former Microsoft executive who played an instrumental role in defining Microsoft Internet strategies and driving the Internet Explorer development team; John Cordell, one of the original developers of Internet Explorer and worked on the next generation of Windows; Sam McKelvie, who was responsible for the architecture of MSN Messenger and Robert Williams, who lead key components of the Windows 95 engineering team. Other key members of the team come from Internet industry leaders such as Marimba, Netscape and AT&T Wireless.

"It is critical for wireless Internet startups to look for more than funding and generic guidance from their venture capital firm. Success or failure will likely be hinged on their skills to align themselves with investment firms that have expertise from people who are knowledgeable about and focused on their specific industry. When investment firms, like Ignition, provide this more holistic approach it creates a win-win situation. Investors reduce their capital risk. The new companies gain incremental expertise by exploiting these new components and become more effective in bringing the technologies consumers and businesses crave to the market," said Bob Egan, vice president of mobile and wireless for Gartner Group.

According to Mike Maerz, chairman and CEO for etrieve, "Ignition is different. Their focus on the wireless Internet and model for making a small number of deep investments allows the Ignition partners to make substantive strategic contributions on a regular basis. They have stronger operating management and partnering depth than other VC firms."

Providing financial resources is just one small part of what Ignition delivers to the companies in which it invests and partners. "Ignition isn't giving lip service to its philosophy, they are living it everyday," Reardon said. "We just don't work with one partner, we feel like all of Ignition is in our corner and fighting for us everyday."

While working closely with the companies it invests in, Ignition is forming important relationships with industry leaders across the wireless value chain including carriers and channel providers. "We offer more than just access to Rolodex, we tie partner companies into relationships," said Steve Hooper of Ignition. "We maintain active partnerships with over a dozen industry leaders so that we can better understand their needs, identify companies to invest in and better facilitate successful business development for our portfolio of companies."

"Ignition fills a significant need in the industry," said Kendra VanderMeulen, senior vice president for AT&T Wireless Services. "Their business plan indicates that they will be bringing added value to the end user in a way that is not currently served by the larger carriers."

Ignition continues to be a magnet for world class talent and leadership. As announced, Steve Hooper, former chief executive officer of Nextlink Communications, Teledesic, McCaw Cellular Communications and AT&T Wireless Services, joined Ignition as a full managing director and partner. "Steve's leadership and 20 years of experience helping to build the North American wireless network is an invaluable asset to Ignition," Silverberg said. "His reputation has helped facilitate several important industry introductions."

In addition, technology and marketing executives from the software, wireless and Internet industries -- Carolyn Duffy, Adrian Smith, Mike Wehrs, Michelle Goldberg, Mauread Bray, Michelle Kolstad, Shannon Anderson, Jennifer Akfirat, Robert Headley and John Zagula -- have recently joined Ignition, bringing the company total to 17 professionals. Ignition now supports its partner companies with a fulltime recruiting staff, a number of wireless technologists, marketing and business development resources as well as the expertise of its founding partners and board of advisors.

Lastly, Ignition has also started the Ignition Venture Fund which takes smaller, more passive stakes than those of their core partner companies, but extends their network -- investments here include Tellme (www.tellme.com), Everypath (www.everypath.com), Nimble (www.nimble.com) and mDiversity (www.mdiversity.com).

About Ignition

Ignition Corporation, (www.ignitioncorp.com ), headquartered in Bellevue, Wash., is an investment company designed to fund, mentor and build wireless Internet startup companies. The Ignition team includes former senior executives from McCaw Cellular and Microsoft and strategic partners who have revolutionized the Internet, personal computing and wireless industries. Qualcomm, Softbank Venture Capital and Madrona Venture Group are prominent investors and strategic partners.