Network Intelligence Completes $12 Million Round of Financing; Oversubscribed Round Led By Bain Capital Ventures and Castile Ventures to Meet Strong Customer Demand

Business Wire, Feb 28, 2005

WESTWOOD, Mass. -- Network Intelligence(TM) Corp., the market leader in managing compliance and security data across the enterprise, announced today that it has closed on its third round of venture financing for $12 million. Bain Capital Ventures and Castile Ventures join existing investors Ascent Venture Partners, Egan-Managed Capital, JMI Equity Fund and Network Intelligence Chairman and Founder Lynn Mormann. Benjamin Nye, a venture partner with Bain Capital Ventures has joined the Company's Board of Directors. Network Intelligence will use the funds to expand its reach into the enterprise market, where organizations are confronted with increasingly complex compliance and security requirements. To date, Network Intelligence has raised $25 million in venture financing.

With more than 400 enterprise customers worldwide, Network Intelligence takes the cost and complexity out of compliance and security. With regulations such as Sarbanes-Oxley, GLBA and HIPPA requiring that companies monitor and report on network events, the Network Intelligence Engine(TM) offers the only architecture proven to efficiently collect and protect all the data that drives customers' businesses.

Jack Sweeney, chief executive officer of Network Intelligence, said: "Our existing investors continued to provide strong backing to Network Intelligence and we are extremely pleased that Bain Capital Ventures and Castile Ventures have joined this oversubscribed round. This is an exciting time for the company because we are experiencing very strong customer demand for our solutions, both domestically and abroad. With this new investment capital, we will continue our rapid growth as we further penetrate the enterprise by expanding both our direct sales and channel sales capabilities."

Bain Capital Ventures and Castile Ventures, represented by Benjamin Nye and Nina Saberi respectively bring extensive industry and management expertise to help guide the company as it expands its market presence. Nye, who was part of the senior management teams of both VERITAS Software and Precise Software Solutions, said: "We spoke with many of Network Intelligence's largest customers who are tasked with incredibly stringent regulatory compliance and infrastructure security demands - a real pain point in the market. Customers repeatedly told us that Network Intelligence's enterprise solutions were quick to deploy and were the only products they found that could scale to collect and protect all network event data helping keep them both safe from attack and sound for compliance. Customers literally rely on this product every day."

Nina Saberi, founder and partner at Castile Ventures, said: "We have long respected the vision of the company's founders who have understood the real needs of large enterprises in this area, and have created a compelling and differentiated compliance solution. The recent addition of Jack Sweeney as CEO brings the drive and execution excellence that will enable Network Intelligence to secure clear leadership within this new and strategically vital segment of the security market."

About Network Intelligence Corporation

Network Intelligence is the market-proven leader in consolidating enterprise-wide data at the core of compliance and security. Its core product line, the Network Intelligence Engine(TM), provides the only architecture proven to efficiently collect and protect all the data that drives customers' businesses. Network Intelligence takes the cost and complexity out of compliance and security for hundreds of customers worldwide. For more information, please visit the Company's web site at www.network-intelligence.com or phone 781-375-9300.

About Bain Capital Ventures

Bain Capital Ventures, the venture capital arm of Bain Capital, leverages the institutional advantages and consulting-based approach of Bain Capital to build industry-leading businesses. Focusing on industries such as technology, healthcare, business services, and consumer, Boston-based Bain Capital Ventures benefits from the broader resources of Bain Capital, which includes over 160 investment professionals, a network of over 225 portfolio companies, over $23 billion of assets under management, and the knowledge from 20 years of successful venture investing. For more information, visit www.baincapitalventures.com.

About Castile Ventures

Castile Ventures is an early-stage venture capital firm investing in innovative enterprises developing future generations of communications, software and IT infrastructure. Based in Waltham, Mass., Castile is distinguished by the deep sector expertise and business-building experience of its partners. The firm's signature is a high degree of value-added support delivered through lasting partnerships with entrepreneurs. For more information, visit www.castileventures.com.