IXATA Group Closes Funding Agreement With NextGen Capital for $1,000,000; Additional $750,000 Funding Linked to Company Milestones

Business Wire, Dec 8, 2000

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Dec. 8, 2000

The IXATA Group Inc. (OTCBB:IXTA), announced today closing a funding agreement with NextGen Capital L.L.C., a northern Virginia-based venture capital firm specializing in high technology and Internet-related investments.

NextGen purchased $1,000,000 of the company's convertible preferred stock today. Upon successful completion of performance milestones in the next nine months, NextGen will invest up to an additional $750,000 in the company in that period.

Under terms of the agreement, NextGen will appoint a majority of the Board of Directors. Other management changes are being implemented and will be announced shortly.

"NextGen's investment today enables us to further enhance and expand our RFP Express service to meet our expanding base of worldwide corporate users and hotel properties," said Paul B. Silverman, chief executive officer of The IXATA Group Inc. and IXATA.COM. "NextGen's ability to further enhance our management team will also play a key role in improving the Company's future growth prospects."

IXATA.COM, a wholly-owned subsidiary of The IXATA Group Inc. (OTCBB:IXTA), is an Internet-based, business to business, e-commerce company providing solutions for a broad spectrum of clients in the hotel, hospitality and corporate travel industries.

About NextGen Capital

NextGen Capital L.L.C. (www.nextgencapital.com) manages two venture capital funds, which invest in early stage technology-based companies in the mid-Atlantic region. Investors backing NextGen Capital are primarily executives from the technology and financial sectors who provide their expertise to companies in the Fund's portfolios. Other investments include Wall Street Sports, now known as Sandbox.com (www.sandbox.com), SynXis Corp. (www.synxis.com), AtYourBusiness.com (www.atyourbusiness.com) and Brainbench (www.brainbench.com). NextGen Capital is based in Fairfax, Va.

About IXATA.COM

IXATA.COM has pioneered development of RFP Express, an Internet-based system and service that automates labor-intensive processes in the travel industry through the integration of innovative Internet and software applications, and database technology. RFP Express provides corporate travel managers with a simple "point and click" approach to create, manage and process thousands of RFPs and eliminate costly, labor-intensive paper, faxes and telephone calls. IXATA.COM is developing a portfolio of specialized data mining products and services for corporate users, hotels and strategic partners within the travel and hospitality marketplace. IXATA.COM is positioned to address the needs of the $575 billion corporate travel market. IXATA.COM now serves more than 70 companies, 3,000 hotel properties and five of the largest travel agencies and travel management companies. For more information on IXATA.COM, visit the company's Web site (http://www.ixata.com).

Statements made in this news release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based on management's belief as well as assumptions made by, and information currently available to, management pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. Additional information concerning these factors can be found in press releases as well as in the company's public periodic filings with the Securities and Exchange Commission. The company undertakes no obligation to update the statements contained in this press release after the date hereof.