Kalido Secures New Funding to Fuel Further US and European Expansion in Enterprise Data Warehousing Market.

BURLINGTON, Mass. & LONDON -- Award-Winning Software Company Secures US$10 Million Series B Investment Led by Matrix Partners and Announces Owens Corning as its Latest North American Customer

Kalido, the leading data warehouse lifecycle management (DWLM) software provider, has raised US$ 10 million to finance further growth of its business operations in the US and Europe. The Series B investment round was led by Matrix Partners with participation from Kalido's existing investors, Atlas Venture and Benchmark Capital. Tim Barrows, Matrix general partner, has also been appointed to the Kalido board.

In addition, Kalido announced its recent signing of Owens Corning, the company that invented glass fiber, as its latest North American customer. A world leader in building materials systems and composites systems, Owens Corning is rapidly implementing a strategic enterprise data warehouse from Kalido to help improve performance tracking and analysis.

Matrix Partners has a long history of exceptional performance in the high tech sector, having funded and grown some of the world's most respected software firms, such as eRoom, Veritas, and Tivoli. Tim Barrows brings a wealth of experience to the Kalido board, with more than 19 years spent in the venture industry, investing in early-stage information technology companies. His and Matrix Partners' successful track record of helping guide company growth through each stage of its development to help achieve optimum success will add value to Kalido's existing growth strategy and complement the input of the company's existing investors.

The new funding rounds off 12 months of strategic investment and hiring efforts for Kalido since spinning out from its former parent, Royal Dutch/Shell Group of Companies (Shell), in July 2003. The company has appointed three new executives to the management team, including CEO Bob Potter, and opened a new US headquarters in Burlington, Mass. In addition to Owens Corning, Kalido has also added a host of new blue-chip customers in the timeframe - such as BP, Georgia-Pacific, Labatt Breweries of Canada and Intelsat - to its existing roster that includes Cadbury Schweppes, Shell, Philips, and Unilever.

The Kalido DWLM software is now deployed in over 35 major projects with Global 2000 organizations and is in production use in over 100 countries. Kalido has also forged formal technology alliances with enterprise data integration leader, Ascential Software and business intelligence solutions leader, Business Objects, as well as launching a formal systems integrator program.

Due to competitive pressures and regulatory requirements, enterprises need to obtain consolidated, detailed views of their performance even as they undergo major structural change such as mergers, acquisitions and reorganizations. Kalido's DWLM software addresses this need by enabling companies to rapidly build and update enterprise data warehouses and manage associated master data for timely financial and management reporting across multiple business perspectives.

Bob Potter, chief executive officer, Kalido, said: "After a great deal of interest from prominent venture capital firms, we are delighted to welcome a top-tier US-based and internationally regarded firm, Matrix Partners, to our family of investors. This latest round of funding is an investment for the future - allowing us to invest still further in product development and finance further international expansion, especially in the United States, where there is huge market potential."

Tim Barrows added: "Kalido, one of the software industry's brightest stars, is a very attractive investment for us, as the company has a sound business model, a loyal and satisfied customer base that includes some of the world's largest companies, and excellent growth prospects. I look forward to representing Matrix Partners on the Kalido board."

Further comments on the deal:

Klaus Mikkelsen, Global Development Leader, Information Systems at Owens Corning: "When we first encountered Kalido, I thought, frankly, that the company made audacious claims that its software could quickly deliver a change-resilient enterprise data warehouse. However, Kalido is living up to its every promise for an astonishingly rapid implementation that can easily adapt to change for timely, detailed reporting and analysis.

"The nature of Kalido's unique business model-driven approach to data warehousing has enabled our business executives to actively participate in the iterative design process of the data warehouse during our initial two month implementation - which simply would not have been feasible with any other custom-built data warehousing solution. Kalido has never once had to modify its original claims, which I find rare for a software vendor. Owens Corning is looking forward to a long partnership with Kalido."

George Coelho general partner, Benchmark Capital: "Kalido has strong financial stability and is very well capitalized for aggressive future growth, particularly in the US market."

Christopher Spray, senior principal, Atlas Venture: "This funding round, completed at a healthy increase in valuation, reflects the significant progress that the company has made over the past year."

About Matrix

Since its inception in 1977, Matrix Partners has been dedicated to helping outstanding entrepreneurs build industry leading technology companies. With offices in the two major technology centers - Boston and Silicon Valley - Matrix has developed an exceptionally strong network of contacts and entrepreneurial know-how. Companies that have gone public out of the Matrix portfolio, where Matrix played a founding role, have generated well over $100 billion of market value. These include Veritas (Nasdaq:VRTS), Tivoli (acquired by IBM), ArrowPoint Communications (acquired by Cisco), Alteon Web Systems (acquired by Nortel), Phone.com (Nasdaq:PHCM), SilverStream Software (acquired by Novell), Sonus Networks (Nasdaq:SONS) and Sycamore Networks (Nasdaq:SCMR). Matrix has enjoyed one of the highest rates of return in the industry over the past 20 years. Matrix Partners is online at www.matrixpartners.com.

About Kalido

Kalido is the leading data warehouse lifecycle management (DWLM) software provider. The KALIDO(R) DWLM Suite automates data warehouse creation and modification to provide business users with timely and consolidated management information throughout organizational change. This ability empowers IT and the business to become more closely aligned to help accelerate financial reporting and enhance performance management of key business entities such as customers, brands, sales, marketing, supply and logistics.

The KALIDO DWLM Suite consists of adaptive data warehouse and master data management software. This software application portfolio allows users to rapidly build and maintain an enterprise data warehouse and its master data without the need for programming or operational system standardization. The software suite is designed upon UK-patented technology that enables the business model within the data warehouse to be easily modified to keep it continuously up to date with the business as it changes. Kalido's software reduces the creation and lifecycle maintenance staffing costs of data warehouses by 55 per cent or more compared to custom-built solutions according to an independently audited study.

Kalido serves major companies in over 100 countries including BP, Cadbury Schweppes, HBOS plc, Intelsat, Labatt Breweries of Canada, Philips, Royal Dutch/Shell Group of Companies (Shell), and Unilever. A privately-held software company, Kalido is headquartered in Burlington, Mass. and London, UK and has regional sales offices throughout the United States, United Kingdom, and France. Kalido works closely with technology partners and large system integrators for the deployment of Kalido data warehousing projects. More information about Kalido can be found at: http://www.kalido.com.

About Data Warehouse Lifecycle Management

Data Warehouse Lifecycle Management (DWLM) empowers organizations to effectively manage master data-aligned enterprise data warehouses from initial inception to operation, through maintenance and a lifetime of modification. Compared to traditional data warehousing approaches, DWLM delivers faster data warehouse implementations, allows faster adaptation to organizational change, and reduces backlogs of data warehouse change requests. These abilities ensure that data warehousing implementations remain in step with the business to dramatically improve the quality of management information and significantly reduce project risk.