Terracotta Closes $13.5M Funding Round with Goldman Sachs; Financial Services/Telecom Sectors Targeted for Breakthrough in Java Scalability.

SAN FRANCISCO -- Terracotta Inc, developer of groundbreaking solutions for Java scalability, today announced completion of its second round of post-seed funding. Led by Goldman Sachs, the $13.5 million up round included investments from Presidio STX, LLC (a subsidiary of Sumitomo Corporation of Japan) as well as first-round investors Benchmark Capital and Accel Partners. E[acute accent]The new financing accelerates the launch of the company's caching and clustering solutions that radically simplify the scale out of enterprise Java applications, requiring no changes to application code. As a result, these solutions are implemented quickly and deliver more efficient use and reliable performance of hardware and software resources. See related news release, "Terracotta Takes the Stage at Web Services/SOA on Wall Street; Joined by Goldman Sachs, Presentation on 'Leading-edge Java Scale-out Strategies on Wall Street' Touts Advantages of Moving Clustering Services to Java Runtime" (http://www.terracottatech.com/company/WSWS.html) dated February 21, 2006. E[acute accent]In advance of the company's Wall Street debut, set for the 2006 Web Services/SOA on Wall Street Show and Conference on February 27 in New York City, Terracotta has already attracted interest in the financial services and telecom sectors. E[acute accent]"There is no industry realm in which the challenge of Java scalability is felt more sharply than in financial services, where Java is intrinsic to mission-critical trading systems, risk management applications and sophisticated Web services architectures. For that reason, we are particularly honored that a Wall Street leader such as Goldman Sachs has expressed its confidence in our future," said Ari Zilka, founder and CEO of Terracotta. E[acute accent]David Campbell, vice president, Principal Investments at Goldman Sachs, joins the Board of Directors. E[acute accent]Campbell added, "Goldman Sachs identified a strong need for these solutions for our own applications and in the broader marketplace. The performance of Terracotta's products, coupled with the quality and experience of the founding team, drove our investment in the company. We believe Terracotta adds significant value to enterprise Java."

E[acute accent]About Terracotta, Inc.

E[acute accent]Terracotta, Inc. radically simplifies the scale out of enterprise Java applications by delivering enterprise-class clustering and caching services transparently at runtime with no application code changes. By bringing the simplicity of pure, single-JVM Java to multi-node enterprise Java applications, Terracotta gives application developers and operators tremendous development, deployment, and management advantages that translate directly to faster times to market, increased ROI, and lower TCO. Terracotta customers include industry leaders in the financial services and telecom sectors. Founded in 2003, Terracotta is a private firm headquartered in San Francisco. More information on Terracotta can be found at www.terracottatech.com.

E[acute accent]Terracotta, Inc., Terracotta, and the Terracotta stylized "T" logo are trademarks of Terracotta, Inc. Java and all Java-based trademarks and logos are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. Other marks are the property of their respective owners and are used here only for identification purposes.