KnowNow Raises $15Million in B-Round Financing

Sally Khudairi
Mon, 1 Oct 2001 11:59:10 -0700


KnowNow Inc.
Stephen Jones +1.650.641.8571
Sally Khudairi +1.650.641.8570

KnowNow Raises $15Million in B-Round Financing

TPG Ventures, Morgan Stanley, Kleiner Perkins Caufield & Byers and RSA
Ventures Top List of Investors for Application Internetworking Pioneer

MOUNTAIN VIEW, CA - 1 October, 2001 - KnowNow today announced the close
of $15 million in B-round financing led by venture capital firm TPG
Ventures, an affiliate of Texas Pacific Group. The round includes
strategic investments from Kleiner Perkins Caufield & Byers (KPCB),
Morgan Stanley (NYSE: MWD) Technology Ventures, Palomar Ventures and RSA
Ventures. This new funding brings the company's total private equity
funding to more than $23 million, and will help KnowNow grow its
position as a leading provider of application internetworking software
for real-time information exchange among applications over the Internet.

"We have looked at many software companies in the last year and found
KnowNow to have a unique and very strong value proposition" said Manfred
Krikke, partner at TPG Ventures. "The concept of Application
Internetworking, using a single platform to create real time,
interactive Web applications as well as connect existing enterprise
applications using an Internet standards approach, will prove to be very
powerful for customers."

"This funding reflects the growing interest in our application
internetworking solutions; it will allow us to expand our sales efforts
across multiple markets and bolster our technology development,"
explained Bill Barhydt, President and CEO of KnowNow. "More and more
companies are realizing that in order to interconnect disparate
applications and infrastructure, the development process must be both
flexible and streamlined. With KnowNow, developers can start building
desktop and wide area integration solutions today."

KnowNow technology enables companies to interchange up-to-date content
directly to and from end-user applications such as Excel spreadsheets,
Java-based programs or Web-enabled enterprise applications. KnowNow
delivers client/server richness through constant communication between a
Web page and application servers - both inside and outside the corporate
firewall. The company is the first to promote dramatically shorter
development cycles than current approaches: KnowNow's simple,
standards-based integration software is easy to deploy - without
requiring the use of a particular technology or programming environment.

Ashley Fieglein and Steve Foster Join Board of Directors

"Both Ashley and Steve have contributed to the growth and market
prominence of some of the industry's best known companies, including
Ariba, Hewlett-Packard and 3Com, and share our vision of leveraging the
Internet to pervasively exchange real-time information across
applications and firewalls," added Barhydt. "We are honored to have them
join our board and look forward to their help with positioning KnowNow
for long-term success."

Ms. Fieglein focuses on the enterprise software and Internet
infrastructure sectors for Morgan Stanley Technology Ventures.  Prior to
joining Morgan Stanley Technology Ventures in February 2001, Ms.
Fieglein was Director of International Strategy and Business Development
for Ariba, a global provider of B2B e-commerce solutions.  Ashley was
previously a member of Morgan Stanley's technology investment banking
franchise in Menlo Park, California and has also worked as an investment
analyst for hedge funds focused on technology investments.  She holds a
B.A. in International Relations and an M.A. in International Policy from
Stanford University.

Mr. Foster is a General Partner at TPG Ventures. Prior to joining TPG
Ventures in 2000, Steve was a Partner at Crosspoint Venture Partners.
>From 1995 to 1998, Steve was the Director of Business Development for
3Com Corporation. Prior to joining 3Com, he spent six years at
Hewlett-Packard where he held a variety of finance, marketing and
business development roles. From 1984 to 1988, he was an Audit Manager
at Ernst & Young. Steve earned his M.B.A. with honors from Northwestern
University in 1989. He received his B.S. degree in 1984 as a Phi Beta
Kappa graduate of Santa Clara University.

The company's first round of funding was led by Kleiner Perkins Caufield
& Byers in December 2000 and totaled $8 million. "KnowNow is a leader
among our Keiretsu of companies that are spearheading solutions for the
real-time enterprise," said Kevin Compton, partner at Kleiner Perkins
Caufield & Byers. "The caliber of investors that have joined us is
further validation of KnowNow's promising future."

About Kleiner Perkins Caufield & Byers
Founded in 1972, Kleiner Perkins Caufield & Byers began offering
entrepreneurs a broader philosophy of value-added investing, not merely
access to capital, but access to people as well. KPCB partners
cumulatively have over 100 years of industry experience in successful
high growth companies. Each partner has been a line manager with
accountability for profits and losses, and hands-on responsibility for
bringing products to market. This experience has resulted in the
creation of over 100 publicly traded companies with another 80 on their
way to similar success. KPCB has raised over $1.2 billion in capital and
has invested in companies whose total market value exceeds $80 billion.

About Morgan Stanley Technology Ventures
Morgan Stanley Technology Ventures is a dedicated venture capital arm of
Morgan Stanley, focused on serving as active investors in
next-generation technology leaders. Technology Ventures works closely
with Morgan Stanley's global Investment Banking, Equity Research and IT
organizations to leverage the firm's resources, relationships and
insights from around the world.  Morgan Stanley Technology Ventures
invests in early through expansion stage opportunities across all
sectors of technology, with current portfolio companies including
Corrent, KnowNow and Mobilian.

About Palomar Ventures
Palomar Ventures, a Southern California venture capital firm with $300
million under management, invests in early-stage information technology
companies.  Palomar Ventures is currently focused in the strategic areas
of infrastructure software, networking communications, next-gen storage
and core solutions to make the enterprise more competitive.  Investments
to date include Again Technologies, Continuous Computing, Dorado,
Efficient Networks, Innovics, StoneFly Networks, Syntricity, Telecore
(ViaSource), uMachines, Virtella, and YellowShirt.  Founded in 1999,
Palomar has offices in both Santa Monica, CA and Irvine, CA.

About RSA Ventures
RSA Ventures is a venture capital fund sponsored by RSA Security Inc.,
the most trusted name in e-securityTM.  The fund is an ROI-driven
investment vehicle that combines the strategic value of a corporate
investor with the structure of a venture fund to add value to its
portfolio companies.  RSA Ventures invests in companies that have a
compelling vision and the opportunity to be a market leader in the areas
of enterprise software and services, Internet infrastructure, and
wireless communications.  In addition to capital, RSA Ventures'
portfolio companies benefit from the skills, experience, trusted brand
name, and global presence of RSA Security.  More information is
available on

About TPG Ventures
TPG Ventures is an affiliate of Texas Pacific Group, and has raised over
$450 M in its 2001 fund, focused on investments in leading technology
companies. Texas Pacific Group is a private equity investment firm
founded by David Bonderman, James G. Coulter and William S. Price, III
in 1993 with offices in San Francisco, Palo Alto, Fort Worth, and
London. Texas Pacific Group and its affiliated partnerships have
aggregate committed capital of more than $7.0 billion, with more than
$2.5 billion invested in technology and telecommunications worldwide.=20

About KnowNow
KnowNow's application internetworking software enables the exchange of
up-to-date content  - both inside and outside the corporate firewall -
dynamically and persistently over the Internet. With KnowNow, myriad
end-user applications, including Java-based programs, Excel spreadsheets
and Web-enabled enterprise solutions, evolve into real-time applications
with client/server interactivity. Headquartered in Mountain View,
California, KnowNow is a privately held company with backing from
premier venture capital firms, including Kleiner Perkins Caufield &
Byers and Palomar Ventures. Developers can download products, sample
applications and documentation from the KnowNow Developer Center at ; further information about KnowNow is
available at .