Continuous Computing Receives Over $21 Million in Venture Funding

Business Wire, March 28, 2001

Business Editors

SAN DIEGO--(BUSINESS WIRE)--March 28, 2001

Continuous Computing Corp. (CCPU), the leading provider of Voice-over-Packet platform solutions for telecom equipment manufacturers, today announced it has received over $21 million in equity funding from several venture capital organizations.

The round was led by Technology Crossover Ventures, with additional participation from Palomar Ventures, Smart Technology Ventures and senior partners of W R Hambrecht Co, including Bill Hambrecht, chief executive officer and chairman.

Continuous Computing Chairman and CEO Ken Kalb said, "This round of financing ensures upSuite(TM), CCPU's award-winning high-availability middleware, will become ubiquitous as the industry standard for enabling fault-tolerant voice-over-packet applications. From the company's founding in 1998, we have attracted world-class investors as well as world-class customers. We are delighted to have our investors participate in our continued success."

As a result of the funding, Will Griffith of Technology Crossover Ventures will join the board of directors of Continuous Computing. Griffith said, "I am looking forward to being a part of CCPU's team, as they continue to forge ahead and empower top tier telecom customers with platinum VoIP applications."

Randy Lunn, general partner with Palomar Ventures said, "I am extremely pleased with the progress that the Continuous Computing management team has made over the last year. I am enthused by the support given by our new investors in helping drive the company's successful business model forward."

About Continuous Computing Corp.

Continuous Computing is the leading provider of voice-over-packet platform solutions for telecom equipment manufacturers and application developers. CCPU's High-Availability, Hi-5(TM) architecture is the industry standard for the rapid development and deployment of VoIP applications. CCPU designs and builds complete media gateways, media gateway controllers, signaling gateways, billing and OAM&P servers, as well as enhanced IP media servers. CCPU customers include Alcatel, Cisco, Ericsson and Lucent, among many others. Corporate offices are located at 9380 Carroll Park Drive, San Diego, CA 92121. TEL: 858/882-8800, FAX: 858/777-3388. CCPU can be found on the World Wide Web at www.ccpu.com.

About Technology Crossover Ventures

TCV was founded in 1995 to capitalize on the emergence of the Internet and to create a new model for Internet investing by combining the best of venture capital and public market investing. It is one of the largest venture firms in the country focused exclusively on the Internet, having raised over $2.5 billion since 1995. TCV has twelve partners and headquarters in Palo Alto, Calif. The company provides multi-stage venture funding -- from $3 million to $75 million per company -- and leverages its venture activity into the public market. Over the past five years, TCV has invested in over 125 portfolio companies. For more information about TCV, visit the Web site at www.tcv.com.

About Palomar Ventures

Palomar Ventures currently has $300 million under management with premier investors including J.P. Morgan, Bank of America, SunAmerica and Lehman Brothers. Typical investments involve $3 to $10 million in capital, and the company prefers to act as a lead or co-lead investor early in the process of value formation. Palomar Venture's core areas of expertise and strategic focus are:

-- Datacom/Telecom/Broadband Communications

-- Infrastructure software for e-business

-- Business to business IT infrastructure

About Smart Technology Ventures

Smart Technology Ventures (STV) has been funding and helping build wireless, fiber optic, Internet infrastructure and other telecommunications and information technology companies since 1997. Its first two funds, Smart Technology Ventures I and II, invested in 34 innovative companies, including Innovent Systems (formerly MicroLink Corp.), Sequoia Software Corp. (Nasdaq:SQSW), Centillium Communications Inc. (Nasdaq:CTLM), Vertical Net (Nasdaq:VERT) and Continuous Computing. Smart Technology Ventures III is a $175 million SBIC venture fund providing predominantly Series A and B financing, but with some later stage as well as pre-IPO investments. It follows the success of STV's two earlier funds. The current fund invests in wireless technologies, next generation telecommunications and networking infrastructure, primarily in Southern California.

About W R Hambrecht Co

Founded in 1998 by William R. Hambrecht, WR Hambrecht Co is a financial services firm committed to using the Internet and auction process to level the playing field for investors and issuers. The firm's impartial Internet-based auctions, which allow the market to determine pricing and allocation, are dramatically changing the financial services landscape. WR Hambrecht Co provides underwriting and advisory services for technology and emerging growth companies, as well as equity research, sales and trading, corporate and venture services, online brokerage and private equity offerings. WR Hambrecht Co offers all investors real-time, in-depth research on Network Infrastructure, Wireless, Open Source and other emerging growth sectors.