Xythos Secures $4 Million in Series C Funding; New Product Releases Also Improve Integration and Security

Business Wire, Sept 29, 2003

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 29, 2003

Xythos Software, the leading Internet file management software provider, today announced that it closed a $4 million Series C funding round led by IDG Ventures and Mobius Venture Capital. The San Francisco-based software company also announced updated versions of its WebFile Server and WebFile Client products designed to improve enterprise content security and collaboration.

"Our investment in Xythos is a reflection of the exceptional impact the company has had in the market over the last year, as well as the sizeable opportunities ahead," said Susan Cheng, general partner, IDG Ventures. Technology investors are optimistic about the growing use of Internet standards, such as WebDAV to reduce software TCO (Total Cost of Ownership).

"WebDAV applications like Xythos' deliver the core document management features users need while omitting the unnecessary cost and complexity that they don't require. Customers are quickly recognizing the benefits of this approach," added Ryan McIntyre, principal at Mobius Venture Capital.

Xythos' simple content management solutions are already supporting diverse business processes around the globe. Insurance giant Chubb has expanded its use of Xythos products to support more than 5,000 commercial underwriters operating in several different countries. Xythos products are also being used to address growing compliance requirements such as HIPAA. The Surgical Planning Lab at Brigham and Women's Hospital is using the Xythos WebFile Server to improve how researchers and technicians safely share scanned patient image files while improving HIPAA security compliance. As a result of the growing support of the WebDAV protocol and the company's leadership in WebDAV application development, Xythos has quickly grown its licensed user base to over 350,000 at over 80 different organizations.

The new versions of its WebFile Server and WebFile Client software are a result of its focus to provide enhanced tools to automate and simplify the integration of simple content management and collaboration with customers' existing authentication and security standards. "Xythos customers are being challenged to respond to growing compliance requirements to better protect and manage their business information," said Ed Miller, CEO of Xythos. "We've worked closely together with them to ensure that Xythos products leverage the investments they're making in user authentication and security technology to ensure that improved content security doesn't reduce information access or utility," he added. The new WebFile Server's user model wizards will automate integration with LDAP and Microsoft's Active Directory helping organizations centrally manage access to enterprise content and improving their ability to track information usage and provide compliance reports.

Key new features included in the Xythos product upgrades include:

WebFile Server:

-- A new Web user interface -- simplifying user collaboration

-- SMB/CIFS server support -- for non-WebDAV enabled application

requests

-- Enhanced administrative management -- automates user and group

management; improves directory management and search control

-- Automated Zip download -- minimized data transfer requirements

WebFile Client:

-- Improved WebFile server and email client integration --

improves performance and security

-- Enhanced Intellittach performance -- quicker link performance

helps eliminate email file attachments

Industry heavyweights are also taking notice of Xythos. Business intelligence leader, SAS Institute has recently released the latest version of its drug development application, now integrated with the Xythos WebFile Server to help improve information security and compliance during the drug discovery and research process. The company has also recently announced its WebFile Client for OracleAS Portal to simplify content publishing for users of all Windows desktop applications. Though their applications differ widely, Xythos' partners have each sought the company's technologies for the same reason -- simple and easy integration of content management functionality provided by its 100% J2EE architecture and its market leading WebDAV client support.

About Xythos Software, Inc.

Xythos Software is the leading developer of Internet file management software for secure file access and sharing. Xythos' WebDAV compliant WebFile Server(TM) and WebFile Client(TM) products help enterprise customers easily find and share information from any Internet location while improving file system security and reducing the load on email systems. Founded in 1999, Xythos is a privately held San Francisco company with primary funding from IDG Ventures and Mobius Venture Capital (not affiliated with Mobius Management Systems, Inc.)