Danger, Inc. Announces $37 Million Financing Round; Round to Be Used to Scale Customer and Partnership Base

Business Wire, July 23, 2004

PALO ALTO, Calif. -- Danger, Inc., provider of the hiptop(R) Wireless Solution, today announced it has secured an additional $37 million in its Series D Prime financing. The financing round was led by Mobius Venture Capital, Redpoint Ventures, and SOFTBANK Capital Partners, and also brought in two prominent new investors: Institutional Venture Partners (IVP) and Adams Street Partners. Nearly all of Danger's existing institutional investors participated at pro-rata or greater levels, including: Mobius Venture Capital, Redpoint Ventures, Meritech Capital Partners, SOFTBANK Capital Partners, Venture Strategy Partners and Diamondhead Ventures. The financing round was oversubscribed, so Danger's Board of Directors approved an expansion of the round to $37 million to meet the demand for investment.

In the last year, Danger launched its wireless service with an additional seven carrier partners in five additional countries around the world. In addition to T-Mobile in the United States, Danger sells its hiptop product through EPlus in Germany, ONE in Austria, Microcell in Canada, TritonPCS in the southeastern US, Edge Wireless in the northwestern US, Cable & Wireless in the Cayman Islands and Starhub in Singapore. Danger is also developing key partnerships with Original Equipment Manufacturers (OEMs) and content partners to expand the company's hardware and software offerings. Danger expects to utilize its additional funding to further develop these partnerships and expand its sales on a global basis.

"As specialists in expansion-stage financing, we are delighted to be working with Danger," said Norm Fogelsong, Managing Director of IVP. "The company has a proven technology offering and a rapidly-growing subscriber base. With this substantial financing round, Danger is well-positioned to dramatically scale its business as a mass-market wireless software and services provider."

"With exciting new partnerships and opportunities in place, we are fortunate to have investors that wholeheartedly support our efforts to grow our business rapidly," said Hank Nothhaft, Danger's Chairman and Chief Executive Officer. "This oversubscribed round affirms Danger's business model, position in the marketplace, and prospects for significant success within the mobile internet market."

Danger provides an end-to-end solution to wireless carriers, consisting of back-end infrastructure software, a platform for third-party application development, hardware device designs and a device operating system. Danger's wireless products have been embraced by consumers, Hollywood celebrities, musicians and athletes -- all who value the ability to stay connected while on the go. The hiptop device has received numerous awards and industry accolades, including "Best of CES" in the Wireless Communications category (CES, Las Vegas, 2004) and "Favorite Wireless Widget" at the CTIA tradeshow (Atlanta, 2004).

For more information about Danger's investors, please visit their websites:

Mobius Venture Capital: www.mobiusvc.com

Redpoint Ventures: www.redpoint.com

SOFTBANK Capital Partners: www.sbcap.com

IVP: www.ivp.com

Adams Street Partners: www.adamsstreetpartners.com

Meritech Capital Partners: www.meritechcapital.com

Venture Strategy Partners: www.venturestrategy.com

Diamondhead Ventures: www.dhven.com

About Danger, Inc.

Danger provides a complete solution that enables wireless carriers to offer innovative and affordable voice and data products to consumers over next-generation wireless networks. Today, this solution includes: the hiptop Data Services Framework -- a back-end service delivery infrastructure; the hiptop Development Platform -- a platform for the development of mobile applications using industry standard development tools; and the hiptop Device Design -- a hardware design for a wireless all-in-one device that may be customized and branded by wireless operators. Founded in January 2000, Danger is a privately held company backed by leading venture capital firms and corporate investors. Danger is based in Palo Alto, Calif. Additional information about the company is available at www.danger.com.

Danger and hiptop are trademarks and/or service marks of Danger, Inc. in the United States and in other countries. All other trademarks, service marks, and product names are the property of their respective owners.