OVP Venture Partners Announces Final Close of Sixth Fund.

Business Editors

KIRKLAND, Wash.--(BUSINESS WIRE)--July 19, 2002

$190 Million Fund to Focus on Seed and First-round Investments in Areas of Enterprise Software, Security, Business Process Outsourcing,

Wireless and Network Infrastructure

OVP Venture Partners, the venture capital market leader in the Pacific Northwest, today announced the final close of OVP VI, with committed capital exceeding $190 million.

Investors in OVP's sixth Fund include many of the most prestigious pension funds, endowments, universities, foundations and corporations in the nation.

"We are thrilled and gratified by our investors' vote of confidence in our investment model and team, particularly given this very challenging fund raising environment," said Gerry Langeler, OVP general partner. "The support of these premier partners allows us to continue our focused approach of being active investors. We sit on the boards of all the companies we fund and work side-by-side with entrepreneurs to add value in the management and growth of a company as it builds to become a major enterprise."

The overarching focus of OVP VI will be on software, specifically deals in the areas of enterprise software, security, business process outsourcing and wireless and network infrastructure. The new Fund has already made one investment in Intelligent Results, an enterprise software company, based in Bellevue, Wash. That company is working to transform text-based unstructured data communications into actionable business intelligence. Investments in additional companies are under active consideration.

"One of the things that impressed us most was the level of experience, success and maturity the OVP partners possess. They have built real companies. This was a key differentiator for us in determining what sets them apart from other venture firms," commented Clint Harris, of Grove Street Advisors in Wellesley, MA. "Their operating expertise and hands-on style to their portfolio companies is what entrepreneurs really need now. It's that kind of approach we want for our investment."

Experienced Team with Real Domain Expertise

OVP's history and heritage includes the backing of more than 70 companies -- 22 have had successful IPO's, and 11 others have been successfully acquired by large public companies. The firm's investment philosophy is rooted to making sound investments in areas in which its partners possess deep domain knowledge, operations technology expertise and connections within a deep network of industry experts.

Jay Fewel, senior equities investment officer at the Oregon State Treasury, feels the firm has thrived in good times and bad. "Market cycles come and go but one thing remains constant - entrepreneurs always drive innovation," Fewel said. "We believe this is the right time to continue investing. We are confident OVP can manage our money to the benefit of us all."

OVP partner Chad Waite has led 19 companies to successful IPO's in his career as a venture capitalist. Gerry Langeler is co-founder and former President of Mentor Graphics, the second largest software company in the Pacific Northwest. Bill Miller is a former Microsoft executive where he helped found MSN; Dave Chen is a successful entrepreneur, strategy consultant and marketing executive and Lucinda Stewart's background includes a breadth of experience in both investment banking and operations.

OVP only invests in early stage companies as a lead or co-lead. The initial investment in a company will range from $1 million to $5 million with up to $12 million going in over the life of a deal. Investments are primarily in the western third of North America, with a strong emphasis in the Pacific Northwest.

OVP VI also includes the OVP VI Entrepreneurs Fund. The Entrepreneurs Fund brings leading entrepreneurs -- many of whom pioneered venture-backed Pacific Northwest based companies -- into the OVP fold.

Returning investors in the new Fund include the Oregon Public Employees Retirement Fund, the Washington State Investment Board and Western Metal Industry Pension, a union pension plan based in Seattle. Other investors include the California Public Employees' Retirement Systems (through Grove Street Advisors), Dow Chemical Pension, Nationwide Insurance, Meyer Memorial Trust, Indiana University Foundation, Kenyon College, University of Richmond and investment management company Frank Russell (on behalf of one of its clients). A corporate pension fund in Connecticut is the Fund's fourth largest investor.

About OVP

OVP is the market leader in the Pacific Northwest with over $506 million in committed capital under management since its inception. The firm originates and leads its investments with a focus on firms in Business Infrastructure Technologies, Business Process Outsourced Services, and Communications Infrastructure. OVP partners become dedicated resources for their portfolio companies, joining the company's board of directors and taking an active role in assisting the management and growth of the company as it develops into a major enterprise. For more information about OVP Venture Partners, please go to: www.ovp.com.