Network Alchemy Closes First Round Funding With Trinity Ventures.

SANTA CRUZ, Calif.--(BUSINESS WIRE)--April 6, 1999--Network Alchemy, the leading provider of large-scale Virtual Private Networks (VPNs), has completed its first round of funding with top-tier Silicon Valley investment firm Trinity Ventures. Network Alchemy has developed a breakthrough clustering technology that enables large corporations and ISPs to use the Internet securely and reliably over VPNs for private business communications and commerce. Established by former Cisco Systems engineers and the founders of TGV Software, Network Alchemy raised nearly seven million dollars in its first round, including an unusual two million dollar seed investment from its founders.

Trinity Ventures general partner, Lawrence K. Orr, stated, "Given the successful history of the engineering team and the substantial technological advancements they have made, I am confident Network Alchemy will succeed in more than one market sector. Once they have established themselves in the VPN space, I expect the company will target broader market applications for this technology."

"Due to the strong track record of our founders, Network Alchemy attracted early interest from VCs, as well as from within the company itself. The founders' personal investment of two million dollars demonstrates tremendous confidence in our products," said Kenny Frerichs, president and CEO, Network Alchemy. "We are fortunate to have partnered with such a well-established firm as Trinity, that adds years of business expertise and affiliations to the fold."

Network Alchemy's patent-pending technology is the first to enable corporations to support hundreds of thousands of concurrent users over a VPN. Its solution provides the only viable alternative to expensive leased lines for business-to-business commerce and communications. According to Forrester Research, business-to-business e-commerce will reach $65 billion in transactions by the year 2000. The scalability and 99.999% reliability of Network Alchemy's products are key to the delivery of VPNs to this space, making Network Alchemy a leader in this previously untapped market.

Trinity Ventures is a privately held, professionally managed venture capital firm with over $300 million in committed capital. Founded in 1986, Trinity has invested in over 75 technology companies.

Founded in Santa Cruz, California in 1997, Network Alchemy was formed by a team of established engineers to provide premier Virtual Private Networking solutions for the enterprise. Please visit Alchemy's Web site at www.network-alchemy.com.