SquareTrade Secures $9 Million In Second Round of Venture Funding

Business Wire, April 17, 2000

Business Editors/Internet Writers

SAN FRANCISCO--(BUSINESS WIRE)--April 17, 2000

SquareTrade, the premier online dispute resolution service, today announced a $9 million round of funding. This venture capital funding, led by Weston Presidio Capital and Chase Capital Partners, will be used for product development, marketing and expansion of SquareTrade's dispute resolution service into a number of significant e-commerce business and consumer marketplaces.

In addition, this second round of funding for the company includes new investor Staenberg Private Equity as well as existing investors Draper Richards, Argus Capital, partners of Clayton Dubilier Rice, Thomas Layton (former President and co-founder of Citysearch) and European-based GIP Partners. SquareTrade also announced that Paul Roberts, principal of Chase Capital Partners, and Tom Patterson, general partner of Weston Presidio will join SquareTrade's board of directors.

"By combining its patent-pending technology and the expertise of its international network of mediators, SquareTrade is pioneering new ways for online buyers and sellers to feel more confident transacting online," says Tom Patterson, general partner of Weston Presidio. "Weston Presidio is pleased to be a lead investor in a company that has developed such a unique and critical e-commerce business."

SquareTrade recently announced its online dispute resolution offering via the successful launch of a pilot program to customers of eBay, the world's leading person-to-person online trading community. Through this pilot program, buyers and sellers have accessed SquareTrade's patent-pending technology and network of trained mediators to resolve a wide variety of disputes efficiently and effectively.

"SquareTrade's goal is to provide the support infrastructure for all transactions, business-to-business as well as business-to-consumer," says SquareTrade CEO Steve Abernethy. "This second round of venture funding will allow us to carry out key investments in business development and expand our product features and marketing efforts into multiple business-to-business marketplaces."

"SquareTrade is firmly positioned as a leader in driving one of the key pieces of infrastructure necessary for the continued growth of e-commerce," says Paul Roberts, principal of Chase Capital Partners. "We are proud to be an investor in SquareTrade as it helps to build trust in transactions and creates a unique way to resolve disputes online."

About SquareTrade

SquareTrade provides the premier online dispute resolution service. Fair, accessible and Web-based, SquareTrade's critical internet infrastructure gives buyers and sellers the confidence they need prior to a transaction when conducting consumer-to-consumer, business-to-consumer and business-to-business e-commerce transactions. SquareTrade offers a structured and unbiased multi-step process to guide disputing parties to resolution, which is conducted completely online.

Founded in 1999, SquareTrade has an expanding network today comprised of more than 150 trained mediators and arbitrators. SquareTrade's advisory board of leading experts in cyberlaw and alternative dispute resolution include Roger Fisher, Professor Emeritus at Harvard Law School, Founder/Director of the Harvard Negotiation Project and author of "Getting to Yes"; David Johnson, Partner, Wilmer Cutler & Pickering, Washington, D.C. and ex-Chairman, Electronic Frontier Foundation; Ken McEldowney, Executive Director, Consumer Action; Jonathan Zittrain, Executive Director, Berkman Center for Internet and Society, Harvard Law School; and Ethan Katsh, Co-Director, Center for Dispute Resolution and Information Technology, University of Massachusetts, Amherst. Its offices are based in San Francisco, CA. For more information, employment opportunities or to contact SquareTrade representatives, visit the Website at www.squaretrade.com.

About Chase Capital Partners

Chase Capital Partners (CCP) is a global private equity partnership with over $16 billion under management. CCP has been a leading provider of private equity capital since its inception in 1984 and is a diversified investor in most major industries. To date, CCP has closed more than 950 individual transactions in North America, Europe, Asia and Latin America including over 100 investments in technology and communications companies. Recent investments include Digital Island, Stamps.com, Telecorp PCS, Narus, Triton PCS, eYada.com, Norigen, Viatel, SBAsoft, FusionOne, Driveway, How2TV and Starmedia. CCP's primary limited partner is The Chase Manhattan Corporation, one of the largest bank holding companies in the United States.

About Weston Presidio Capital

Weston Presidio Capital is an investment partnership with over $900 million in committed capital. Weston Presidio operates from offices in San Francisco and Boston and their professionals collectively have more 130 years of private experience, having worked with over 200 companies to achieve their business objectives. Companies in Weston Presidio's portfolio include Mapquest, Vitria, Quidnunc, Virage, Red Envelope, JetBlue Airways and Wild Oats Markets. More information can be found at www.westonpresidio.com.