NEXX Systems Announces Completion of Series B Financing; Top Tier US Venture Capital Firm Leads Key Transaction

Business Wire, July 13, 2004

BILLERICA, Mass. -- NEXX Systems, Inc., a leading provider of processing equipment for advanced wafer level packaging applications located in Billerica, MA, announced today the closing of its approximately $10.15 million Series B preferred stock financing.

The transaction was led by Enterprise Partners Venture Capital, one of the premier venture capital organizations in the United States with over $1 billion under active management. Enterprise Partners V, LP and Enterprise Partners VI, LP funds each purchased $4 million of the preferred stock. As part of this investment, Robert Conn of Enterprise joins the NEXX Systems' Board of Directors. In conjunction with the financing, certain NEXX shareholders converted debt totaling approximately $1.8 million into the preferred stock and a further almost $0.35 million of the preferred shares were offered and sold to other existing shareholders.

"We are delighted to have Enterprise Partners on our team," said Richard Post, CEO of NEXX Systems. "Their commitment to the future of NEXX products in the advanced packaging arena will enable us to rapidly bring to market innovative systems technology targeting higher throughput, lower cost of ownership, and exceptional process results."

"Flip chip packaging is growing rapidly and will continue to do so given the never-ending and accelerating appetite for smaller footprint and higher performance," said Robert Conn of Enterprise. "NEXX's total solution approach will result in significant advantages for both integrated device manufacturers and assembly and packaging manufacturers, including lower cost and faster time to market and profitable business models."

Subsequent to the investments, NEXX Systems secured a $6 million line of credit from Comerica Bank through their Technology and Life Sciences division. The line is comprised of several different elements designed to meet NEXX Systems' financial needs.

NEXX Systems brings exceptional technical expertise to flip chip and advanced packaging. Our product lines provide the most efficient, yet affordable, systems of their kind: Nimbus for multi-layer sputter deposition of metals, and Stratus for high throughput electro-deposition of metals. Additional information can be found at: www.nexxsystems.com.

Founded in 1985, Enterprise Partners is a venture capital firm investing in privately held early stage and emerging companies. Enterprise Partners is one of the top-performing venture capital firms in the United States with over $1 billion of capital under active management. Additional information can be found at: www.epvc.com.

"Safe Harbor" statement: This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events or the future performance of NEXX Systems. These statements are only predictions. Actual events or results may differ materially from those in other forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in other forward-looking statements are potential fluctuations in quarterly results, dependence on new product development, rapid technological and market change, acquisition strategy, manufacturing and sourcing risks, volatility of stock price, international operations, financial risk management, and future growth subject to risks. NEXX Systems is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.