Xcelerate Secures Additional $6 Million Funding, Announces Focused Business Model.

Business Editors/High-Tech Writers

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--April 2, 2001

Xcelerate Corporation, a leading provider of technology and e-business services that interconnect businesses with their customers, has received $6 million in Series D funding from three existing investors: The Carlyle Group, idealab Capital Partners and First Union Capital Partners.

"We are extremely pleased that our investors continue to support the direction of our company," said Xcelerate Chief Executive Officer Shannon Denton. "We have a confident group of investors, a talented and focused team, and a business model that addresses a very definite need: technology solutions that create and enhance customer relationships. Moving forward, we will continue to build a solid reputation of responding to a wide variety of customer needs with speed, efficiency and flexibility."

It is anticipated that the funding will exceed Xcelerate's current year working capital needs and is more than sufficient to fund the company until it achieves a cash-flow break-even status, which is estimated to occur in the upcoming quarter.

"We believe Xcelerate is well-positioned in the industry, with a tremendous market opportunity in technology and strategy services related to electronic customer relationship management," said Joseph Lipscomb, Principal of The Carlyle Group. "In addition, the company has fine tuned its cost structure, which should enable Xcelerate to achieve profitability at an accelerated pace."

Adds Denton, "We added several seasoned professionals to the management team during the first quarter and rolled out a new, very focused go-to-market strategy. We are convinced that multi-channel business to customer connectivity is the best place to be during the current economic conditions. And our unique, integrated approach and depth of expertise in this area is on target with what existing businesses are demanding."

The Carlyle Group is a private global investment firm based in Washington, D.C. with over $10 billion of capital under management. Carlyle is a leading investor in several sectors of the global economy including internet-driven businesses, information technology services and telecommunications.

First Union Capital Partners is the equity investing group of First Union Corporation, the nation's sixth-largest bank holding company. Since its inception in 1988, First Union Capital Partners has committed over $2.6 billion and have realized consistently high returns on invested capital.

idealab Capital Partners (ICP) is a venture capital firm affiliated with idealab!, a leading creator and operator of Internet businesses. Founded in 1998, ICP's funds have invested in promising technology companies.

Xcelerate is a professional services firm, providing e-business solutions that enable businesses to interconnect with their customers. The company's integrated approach combines customer relationship strategy, open architecture technology, and customer experience design to maximize customer focus while leveraging existing technology assets. Xcelerate is based in Fort Lauderdale, Florida, with additional offices located in Atlanta and New York. Founded in 1997, Xcelerate helps established businesses create e-business based customer channels through a unique integrated approach. For more information, visit www.xcelerate.com or call 1-888-799-2770.

This press release may contain certain forward-looking statements relating to the future performance of Xcelerate Corporation. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially from expectations.