Orchestria Secures $21 Million in Funding to Extend Market Leadership; VC Community Eager to Invest in Growth Positioned APM Technology

Business Wire, May 3, 2005

NEW YORK -- Orchestria, the global leader in the active policy management (APM) software market, announced today that it has closed its Series D funding with $21 million from both new and existing investors. Leading firms Paladin Capital Group, Goldman Sachs & Co., RRE Ventures and New York City Investment Fund (NYCIF) will join repeat investors Benchmark Capital, Constellation Ventures, and Doughty Hanson Technology Ventures in supporting Orchestria's growth objectives.

"The overwhelming response we received from the VC community allowed us to seek 'strategic money' and select the optimal set of investors to support our aggressive growth strategy," said Bo Manning, CEO of Orchestria. "With this round of funding, Orchestria will extend its established product, brand and customer satisfaction leadership."

The Paladin Capital Group seeks companies that focus on preventing threats to the nation's critical infrastructure and offer solutions that are capable of having an immediate impact. "As the lead investor in this round of financing, we believe Orchestria to be an excellent addition to our Homeland Security Fund," said Ken Pentimonti, Vice President of Paladin Capital Group. "Orchestria's APM software addresses a significant need in the highly regulated government sector."

Goldman Sachs, which is also an Orchestria customer, recognizes the value of the Orchestria solution. "Orchestria provides a solution that can protect customers in highly regulated industries, such as financial services, from the potential risks of non-compliant communications. The technology is likely to continue to be in high demand," said Rohit Malhotra, a Vice President at Goldman Sachs.

RRE Ventures provides software and information technology companies with access to its extensive network of industry contacts. "Orchestria is precisely the type of company in which RRE seeks to invest. We are confident that we can help grow the company in financial services and beyond," said Jim Robinson IV, General Partner of RRE Ventures.

"Orchestria's software is an important compliance tool that is widely used and trusted," said Janice Roberts, Co-President and Co-CEO of the New York City Investment Fund, which was launched in 1996 by Henry R. Kravis and the Partnership for New York City to invest in businesses that generate jobs and promote entrepreneurial activity in New York City. "Orchestria is an excellent addition to the Investment Fund's portfolio because it supports the financial services sector, a primary driver of the New York City economy."

About Orchestria

Orchestria helps organizations dramatically reduce the amount of non-compliant electronic communication. Used by many of the world's largest financial institutions, asset managers, and mutual fund companies, Orchestria Corporation is the global leader in the active policy management (APM) software market. Orchestria's software provides comprehensive compliance capabilities, addressing the unacceptable business risks related to electronic communications sent via E-mail and Instant Messenger, BlackBerry(R) type devices, and Web browsers. Additionally, Orchestria's technology is embedded in offerings from Bloomberg(R) and other service providers.

Orchestria supports both fundamental approaches to APM: Policy Enforcement and Intelligent Surveillance. In Policy Enforcement, Orchestria recognizes policy violations in electronic communications and web activity before the communication is sent or web transaction is completed, stopping the violation before it occurs. In Intelligence Surveillance, Orchestria enables compliance personnel to effectively target their compliance efforts on electronic communications and web activity that have a high probability of violation as opposed to simply reviewing a small set of random events.

About Paladin Capital Group

Headquartered in Washington D.C., The Paladin Capital Group is a premier private equity firm that provides expansion capital for growing companies. Paladin's Homeland Security Fund invests in enterprises whose principal business centers on products and services that address homeland security issues and needs. Importantly, the fund's leadership is comprised of individuals with a proven track record of financial expertise, national security experience and specialized competence. www.paladincapgroup.com.

About Goldman Sachs

GS PIA Technology Investing Group is the technology investing arm of the Principal Investment Area of Goldman Sachs (NYSE:GS), a leading global investment banking, securities and investment management firm. Since 1988, Goldman Sachs and its affiliates have invested over $2 billion in more than 250 companies across a broad range of sectors within the information technology, semiconductor and communications industries. Goldman Sachs invests across the stage spectrum, from early stage venture opportunities to later-stage companies and large mature private equity situations. For more information, please visit www.gs.com/piatech.> About RRE Ventures