Oct 23, 2001
FatWire Software Raises $10 Million in Second Funding Round
Financing to Enable Premier Provider of Dynamic Content Management and Web-Application Assembly System to Aggressively Capture Further Market Share

MINEOLA, N.Y.--FatWire Software, a leading provider of enterprise-level dynamic content management software and developer of the powerful Web-application assembly system UpdateEngine5, today announced that the company has completed a second round of funding at $10 million.

FatWire tripled revenues in 2000 and has enjoyed consistent organic growth since it was founded in 1996. The company raised $9.25 million in an earlier financing round completed in February of 2000, led by Wheatley Partners.

TopSpin Partners, L.P. leads the financing round. TopSpin is the successor fund to the Long Island Venture Fund, L.P. that was founded in 1995. Previous investments include Tularik, Inc., Network Peripherals, Visual Insights, Inc. and Moltech Corp. In addition, EuclidSR Partners, founded in 1970, headquartered in NYC and specializing in the information technology and eHealth industries, Wheatley Partners and Newlight Associates, both based in NYC, also participated. The additional funding will be directed towards increased sales and marketing initiatives to support the company's dynamic content management software, UpdateEngine.

"Over the past year, FatWire moved into new headquarters, doubled staff and hired an experienced management team. Most importantly, we introduced UpdateEngine5, our best-of-breed CMS that provides our clients with unmatched flexibility, scalability and speed-to-market. This new funding will provide additional resources to speed the adoption of UE in the marketplace," said Mark Fasciano, Ph.D., President and CEO of FatWire. "Given the current economy and the tight venture capital market, we believe the financing endorses both FatWire's focus on solid business fundamentals and our approach to dynamic content management."

"FatWire is a strong company which creates visionary software; with an emphasis on ease of deployment and usability," said Paul Lowell, Managing Director at TopSpin Partners. "The company's founders have avoided many of the land mines that have taken down other technology businesses in recent times; they have combined a very bright, experienced management team with superior technology. We see FatWire as a solid investment."

"Despite the recent weakness in IT spending, we continue to look forward to strong growth in the content management software market in both the near and long term. We feel that FatWire has superior technology and a strategy that will continue to establish the Company as a formidable player," said Graham Anderson for EuclidSR Partners.

ABOUT UPDATEENGINE

FatWire's best-in-class software, UpdateEngine5 allows companies to reduce the time, cost and complexity of creating, managing, and deploying content and applications to the Web and other channels. FatWire's unique approach maximizes the value, integrity, and reusability of corporate data. There is no faster way to build scalable, database-driven Web sites. Furthermore, UpdateEngine is 100% Java based, offering scalability, flexibility, and ease of integration.

ABOUT FATWIRE SOFTWARE

FatWire is a software solutions partner that enables companies to execute their business strategies faster than any other solution through the powerful e-business software, UpdateEngine. FatWire's UpdateEngine reduces the time, cost and complexity of creating, managing and deploying content to Web sites and other channels, as well as providing the fastest Web application development available.

Founded in 1996, FatWire Corporation is headquartered in New York and operates regional facilities in London, San Francisco, Philadelphia, Chicago, Washington DC, Atlanta, Denver and Boston. For specific information about FatWire visit www.fatwire.com, or call 516-328-9473 x424.

ABOUT TOPSPIN PARTNERS

Topspin Partners, L.P. is a New York Limited Partnership, founded in 2000, that invests in private equity. The Fund will invest $215,000,000 in start-up and later stage technology-based companies. Topspin is the successor fund to the Long Island Venture Fund, L.P. that was founded in 1995 and has generated a 35% net annual return to its investors since inception. Public companies that were funded by the Long Island Venture Fund include: Tularik, Inc., Network Peripherals, Inc., Infonautics Corp. and MyPoints.com, Inc. Topspin Partners, L.P. has completed investments in Visual Insights, Inc., Moltech Corp., CosmoCom, Inc. and FatWire Software. These companies, amongst others, are involved in advanced lithium-sulfur polymer rechargeable batteries, IP-based Automatic Call Directors, IP-based network area storage technologies and JAVA and XML based e-business software.

ABOUT EuclidSR PARTNERS

Euclid SR Partners, L.P., is a $250 million venture capital partnership with offices in New York City and Philadelphia. It invests in three of the most exciting and dynamic sectors of the economy: lifesciences, information technology (IT), and the convergence of healthcare and IT. The Partnership's goal is to assemble a diversified portfolio of high-growth companies in these sectors where the General Partners have extensive networks and first-hand scientific and market knowledge. Established in January 2000, the Partnership combined the considerable resources and expertise of Euclid Partners, founded in 1970, and S. R. One, Limited, the leading corporate life sciences venture fund which was founded in 1985.

ABOUT WHEATLEY PARTNERS

Wheatley Partners is a New York-based venture capital firm focused on technology-related investments. Wheatley's principals have been investing in the future for over twenty years. Our founders advised and funded such notable technology startups as Novell and Cheyenne Software, and have more recently been involved with market leaders such as CommerceOne, Corvis, VerticalNet, KeyNote and FalconStor.

Wheatley Partners has invested in more than 150 private companies. In addition to its private equity experience, the Principals of Wheatley Partners have an extensive background in public market investing, primarily through their involvement in GeoCapital LLC, which has made equity investments in technology companies since 1979.

ABOUT NEWLIGHT ASSOCIATES

The Newlight Associates family of funds is a group of venture capital partnerships that invests equity capital in early-stage information technology companies. Founded in 1997, Newlight manages over $100 million in assets from its offices in New York City and Long Island. Newlight investment professionals have over 70 years of venture capital investment experience and over 30 years of technology company operating experience, and are active investors and leverage our network of technology, industrial and financial relationships to promote the growth and success of our portfolio companies.