Incipient Completes Highly Successful $25 Million Series B Financing Round.

Business Editors/High-Tech Writers

WALTHAM, Mass.--(BUSINESS WIRE)--Sept. 29, 2003

New and Existing Investors Show Strong Support for

Network-Resident Storage Services Software Leader; $35 Million of

Equity Capital Raised to Date

Incipient, Inc., a developer of network-resident storage services software that leverages advanced SAN networking platforms and intelligent switches, today announced the final closing of its $25 million Series B financing round, with an additional $10 million of equity capital recently closed, to complement the $15 million initial closing announced March 31, 2003. This $10 million additional investment reflects the strong support of new investor HLM Venture Partners of Boston, as well as all current institutional investors. Incipient will use the funds to expand the Company's sales, marketing and product development efforts in order to quickly capitalize on the market opportunity for next-generation intelligent storage services.

"We are pleased to be a part of the team supporting the development of Incipient's data storage software, and bringing this exciting new technology to market," said Al Wiegman, general partner at HLM Venture Partners. "We are impressed that the company is led by industry veterans from EMC, VERITAS, Hewlett-Packard and Compaq, who previously have been involved in the creation of mission-critical enterprise software. Incipient is enthusiastic about bringing to market software that addresses the rising costs and complexities associated with managing networked storage."

HLM's $3 million investment, along with participation from Essex Investments and all of the Company's previous venture investors, including Greylock, Sigma and Globespan Capital Partners (formerly JAFCO), closes Incipient's total Series B funding round at $25 million. When added to a Series A round of $10 million, the Company has raised a total of $35 million of equity capital.

"With this additional equity capital, Incipient is extremely well-funded and capitalized. The strong support and demand from these leading investors in this challenging funding environment is great validation of the progress we have made to date, and the exciting market opportunity we are poised to exploit," said Edward Durkin, chief financial officer, Incipient. "We will continue to aggressively work with the industry's leading storage switch and array vendors to create active, intelligent storage networks that improve data availability, utilization and flexibility while lowering the overall total cost of ownership of SANs."

Incipient's technology, purpose-built to take advantage of advanced intelligent storage networks, enables enterprise users to manage, move and protect data more seamlessly, regardless of where and on what platform it is stored. This new model transforms the fabric from a passive component in the storage network to an active component that simplifies data management and provides enhanced storage services. As storage networks grow in size and heterogeneity, the costs of managing networked storage will continue to skyrocket. Incipient's software allows customers to lower capital and operational expenditures by greatly simplifying network storage management and by increasing the utilization of host, network and storage resources.

About Incipient, Inc.

Incipient, Inc., a Waltham, MA-based high-technology company, develops and markets network-resident storage services software that unleashes the potential of storage networks by simplifying data management and providing enhanced storage services. With an architecture that takes advantage of intelligent storage networking platforms, Incipient's software allows customers to manage, move and protect data more seamlessly, regardless of where and on what platform it is stored. Incipient has secured $35 million in venture financing from Greylock, Sigma Partners, Globespan Capital Partners (formerly JAFCO Ventures) and HLM Venture Partners. Incipient is available online at www.incipient.com.