Venrock and Goldman Sachs Lead $14 Million Investment in IMlogic; World-class Investors Back Leader in Rapidly Growing Enterprise Instant Messaging Market

Business Wire, Jan 13, 2003

Business Editors/High-Tech Writers

BOSTON--(BUSINESS WIRE)--Jan. 13, 2003

IMlogic Inc., a leading provider of infrastructure solutions for the rapidly growing enterprise Instant Messaging (IM) market, today announced the completion of a $14 million investment led by Venrock Associates, with participation from the Goldman Sachs Private Equity Group and original investors General Catalyst Partners and Kodiak Venture Partners. Mike Tyrrell, general partner with Venrock Associates, will join IMlogic's board of directors.

"Attracting additional top-tier investors Venrock and Goldman Sachs is a testament to IMlogic's market leadership, vision, and growth opportunity," said Francis deSouza, CEO of IMlogic. "Our investor group gives us the strategic guidance, resources, and capital to define the enterprise IM infrastructure market over the long term."

"CIO's are recognizing that instant messaging is becoming mission critical and that enterprise IM infrastructure software is a 'must-have' to capitalize on its potential," said Lou Volpe, general partner, Kodiak Venture Partners, and chairman of IMlogic's board of directors. "IMlogic's vision and technology position it as one of the industry's most influential companies."

This round of financing follows a year of significant milestones for IMlogic including:

-- Selling more than 100,000 seats of its flagship product, IM Manager, to marquee customers such as Merrill Lynch and Bear Stearns.

-- Licensing its technology to Microsoft Corporation, which will embed it with Microsoft's next generation enterprise real-time communication solutions.

-- Partnering with key IM networks including Microsoft, IBM, Yahoo! and Reuters.

In addition, Venture Reporter recently selected IMlogic as one of the "Top 100 Venture-Backed Companies of 2002" for its "decisive first mover advantage for its complete IM infrastructure in a growing market without peers."

"Instant messaging is quietly becoming the next big thing in business communications, soon to generate more traffic than e-mail," said Mike Tyrrell, general partner at Venrock Associates. "We invested in IMlogic because the market opportunity is huge, and the company has an exceptional management team, vision, and strategic partnerships. Most importantly, its products are available today, allowing enterprises to cost effectively manage, secure, and better leverage their exploding instant messaging usage."

"We have been consistently impressed with IMlogic's stellar performance and ability to execute," said David Orfao, managing director, General Catalyst Partners. "Strong endorsements from customers, established partners, and industry analysts are indicative of IMlogic's promising future."

Proceeds from the financing will expand IMlogic's sales, business development, marketing, and client services functions, enabling the company to further expand on its leadership position in IM management and infrastructure solutions.

About IMlogic Inc.

IMlogic, Inc., headquartered in Boston, Mass., is a pioneer in delivering enterprise-class infrastructure software that helps companies control and leverage the use of Instant Messaging (IM), the world's fastest growing communications medium. IMlogic's strategic vision provides organizations a comprehensive approach for incorporating IM capabilities in business-critical communications and applications. The company's first offering, IMlogic IM Manager, lets enterprises secure, control and report on IM usage, while satisfying regulatory and compliance requirements set by HR and government agencies (SEC, HIPAA). IMlogic is backed by leading venture capital firms Venrock Associates, General Catalyst Partners, Kodiak Venture Partners, and Goldman Sachs. For more information on IMlogic visit www.imlogic.com.

About Venrock Associates, www.venrock.com

Venrock Associates was founded as the venture capital arm of the Rockefeller Family and continues a tradition of funding entrepreneurs that now spans more than six decades. As one of the oldest venture firms in the United States, Venrock maintains a tradition of collaboration with talented entrepreneurs to establish successful, enduring companies. Venrock activities have focused on early stage companies in Information Technology and Healthcare with investments in Intel, Apple, Stratacom, Spyglass, Check Point Software, Visual Networks, DoubleClick, Genetics Institute, and Millennium Pharmaceuticals, The firm, with offices in New York, Cambridge, and Menlo Park, is currently investing an $800 million fund that closed in July 2000. For more information, please visit the Web site at www.venrock.com.

About Goldman Sachs

Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. The Goldman Sachs Private Equity Group, based in New York and London, manages approximately $11 billion of capital devoted to equity fund-of-fund strategies comprising primary fund commitments, secondary purchases of limited partnership interests, direct co-investments and supporting investment teams in the acquisition of direct private equity investment portfolios.