XAware Receives $2.1 Million in Series-A Funding Led by ITU Ventures Colorado

Business Wire, Oct 3, 2002

Business Editors/High-Tech Writers

COLORADO SPRINGS, Colo.--(BUSINESS WIRE)--Oct. 3, 2002

Capital Infusion Will Bolster XML Information Exchange Leader's

Sales, Marketing and Product-Development Efforts

XAware, Inc., a leader in XML-based information exchange and data integration, has secured a funding package of $2.1 million. The capital infusion is a Series-A round of funding led by ITU Ventures and including Gefinor Ventures, new XAware Chief Executive Officer Bill Miller and former Sun Microsystems executive Janpieter Scheerder.

The funding package will enable XAware to expand sales and marketing efforts, while continuing to develop leading-edge XML-based integration products. In conjunction with this expansion, XAware will concentrate on the needs of systems integrators and software vendors with its XML-based integration components.

Colorado Springs-based XAware develops lightweight embeddable data integration software components that reduce the complexities of accessing, transforming and integrating disparate data and application resources.

"This investment is an affirmation of the strength of our core product, our technology and the abilities of our team," said Bill Miller, newly appointed chief executive officer of XAware. "ITU Ventures and Gefinor Ventures are ideal partners to help XAware realize its full potential as an information exchange company by funding the expansion of our sales, marketing and development activities."

With the broad acceptance of XML as the common language for information exchange within and between companies, there is a growing need for specialized software components that dynamically exchange and integrate data from disparate sources using XML as the exchange language.

XAware is focusing its marketing, sales and development strategy to serve the needs of systems integrators and independent software vendors within the government and financial services sectors. Software tools and components from XAware enable companies to update existing applications or write new ones that are XML, Web Services and integration ready.

ITU Ventures Managing Partner Jonah Schnel said XAware is poised to take advantage of huge opportunities in XML-based information exchange.

"XAware is uniquely positioned to help application providers solve complex integration problems with XML-ready integration components," Schnel said. "We view XAware to be a company with a unique market position and high-growth potential."

Gefinor Ventures' principals chose to back XAware because of its strength in the integration space and its foresight in creating a business model that focuses strategically on software components.

"We have been impressed from the beginning by XAware's products, technology and management team," said Greg Carlisle, managing director of Gefinor Ventures. "Feedback from XAware's customers has reinforced our view that the company is poised to be the leader in XML data integration software. Among a number of companies we looked at, XAware provides a unique solution, built on XML and is ready for deployment."

About XAware, Inc.

XAware, Inc. is a worldwide leader in XML information exchange supporting both J2EE and Microsoft .Net technologies. XAware's lightweight embeddable data integration components dramatically reduce time to market, while increasing interoperability for application vendors in the financial services and government sectors. Focused on serving the needs of systems integrators and software vendors, XAware software components reduce the complexities of accessing, transforming and integrating disparate data and application resources. Founded in 1999, XAware is based in Colorado Springs, Colo., and is venture backed. For more information on XAware, visit www.xaware.com or call 719/262-3724.

About ITU Ventures

ITU Ventures Colorado is an $11 million partnership between ITU Ventures and Colorado Public Employees' Retirement Association (COPERA). This partnership focuses on making investments in technology companies affiliated with research universities and laboratories located within Colorado. ITU Ventures Colorado is managed by ITU Ventures, a firm with more than $45 million in assets serving the unique needs of technology businesses that are emerging from the nation's leading research universities and institutions. For more information, visit www.itu.com.

About Gefinor Ventures

Gefinor Ventures is a venture capital firm providing capital, guidance and strategic support to early stage companies with innovative products and services. With offices in Colorado Springs, Austin and New York, Gefinor Ventures provides the presence and reach of a large organization with a focused entrepreneurial approach. For more information, visit www.gefinorventures.com.

XAware is a trademark of XAware Inc. All other brands or product names are trademarks of their respective owners.