IE-Engine Closes $6.4 Million in Second Round Funding

Business Wire, Jan 13, 2003

Business Editors/High-Tech Writers

WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 13, 2003

Round led by Adams, Harkness & Hill Technology Ventures

and Includes Kodiak Ventures and RBC Capital Partners;

Company Appoints Former GeoTel Executive Tim Allen to CFO

IE-Engine (www.IE-Engine.com) a leading developer of Human Resource Cost Management (HRCM) solutions for the Global 1000, today announced that it has closed $6.4 million in a second round of venture funding, bringing its total capital raised to more than $18m. New investor Adams, Harkness & Hill Technology Ventures (www.ahhtv.com) led the round, with previous investors participating including Kodiak Ventures (www.kodiakvp.com) and RBC Capital Partners (www.rbcap.com). IE-Engine will use the funds to continue the development of its HRCM solutions and to expand its sales and marketing efforts. The company also announced today the appointment of Tim Allen to the position of vice president and chief financial officer.

"Closing our second round with such blue chip investors is the latest milestone for IE-Engine, as we continue to lead the industry in deploying HRCM solutions within Global 1000 companies," said John McMahon, president and CEO of IE-Engine. "This funding validates that we have the people and technology to execute our vision of enabling large companies to strategically manage the data and costs associated with HR benefits and services. We expect this funding to carry us to profitability."

IE-Engine's scalable database and Web-based software applications enable HR decision makers to have greater control over the data, processes and costs associated with HR services and benefits such as healthcare. This gives HR professionals the power to make strategic decisions resulting in:

-- Lower employee benefit costs

-- Higher quality employee benefits & services

-- Lower internal administrative costs

-- Lower recurring benefits consulting fees

"We seek investments in companies that are the best positioned in their industry and offer customers a significant value proposition," said Jay Corscadden, partner at Adams, Harkness & Hill Technology Ventures and the latest addition to the IE-Engine board. "Our investment in IE-Engine reflects the company's market opportunity, strong product offering, customer base, management team and vision."

Allen Named IE-Engine CFO

As CFO, Allen will be responsible for all financial operations, accounting, reporting and planning, investor relations, and other associated areas. Most recently, Allen was VP and CFO of GeoTel, where as a key member of the senior management team he was responsible for guiding GeoTel from an early stage company, through an IPO in November 1996, and its merger with Cisco Systems in June of 1999. . A 27-year high tech veteran, Allen remained at Cisco after the merger as a Director of Finance.

About IE-Engine

IE-Engine Inc. (www.IE-Engine.com) is the leading developer of Human Resource Cost Management (HRCM) software. The Company's Web-based applications enable HR decision makers at Global 1000 organizations to make better strategic decisions, reduce costs and increase the quality of employee benefits, particularly healthcare. With a growing network of more than 240 healthcare and HR service providers, IE-Engine helps large organizations such as Ford, Dow Chemical, Lucent, Staples and ABB automate the entire benefits lifecycle through plan management, automated sourcing, negotiation, carrier performance tracking, cost analysis and employee surveys.

Founded in 1999 and headquartered in Waltham, Mass., IE-Engine is a privately-held company backed by Kodiak Venture Partners, Adams, Harkness & Hill, and Toronto-based RBC Capital Partners, the venture capital unit of Royal Bank of Canada.