Private Equity Week Wire for Tuesday 6/12


ANDOVER, MA — CMGI Inc. (Nasdaq: CMGI) today reported net revenue of $301.0 million for the third quarter ended April 30,
2001, a 29% increase compared with the third quarter of fiscal 2000 and a 12% sequential decrease in quarterly revenue. Excluding the effects of charges related to depreciation, amortization of intangible assets and stock-based compensation (“amortization charges”), intangible asset impairment and
restructuring, CMGI’s third quarter fiscal 2001 operating expenses were $432.7 million, reflecting a decrease of $101.6 million, or 19%, from the previous quarter. Excluding the
effects of these charges, CMGI reported an operating loss (“recurring operating loss”) of $131.7 million or ($0.38) per share for the quarter ended April 30, 2001 versus a recurring
operating loss of $191.5 million or ($0.59) per share in the previous quarter ended January 31, 2001. Including the effects of these charges, CMGI reported an operating loss of
$996.0 million for the quarter ended April 30, 2001, compared to an operating loss of $2.889 billion for the quarter ended January 31, 2001.
CMGI’s net loss was $963.3 million or ($2.80) loss per share for the quarter, compared to a net loss of $2.562 billion or ($7.86) loss per share for the previous quarter ended
January 31, 2001. Included in the third quarter results were charges related to impairment of intangible assets of $609.5 million, depreciation and amortization charges of $236.2
million and restructuring charges of $18.5 million. Second quarter fiscal 2001 results included intangible asset impairment charges of $2.023 billion, depreciation and amortization
charges of $574.2 million and restructuring charges of $100.0 million. As for its @Ventures investment arm, CMGI’s portion of @Ventures investments made during the quarter totaled $2.9 million, consisting of follow-on investments in Idapta, MyFamily and CarParts. @Ventures sold its investment in SpeechMachines during the quarter.

EAST NORRITON — ActiveStrategy Inc.
announced today that it has received $2 million in
equity financing from two venture capital firms and several individual
investors. The venture capital firms include Shea Ventures of Walnut,
California, and Kendryx Enterprises of Breckenridge, Colorado and
Blairstown, New Jersey. The individual investors include William R. Timken,
a co-founder and retired Vice Chairman of the Board of Hambrecht & Quist
(H&Q) of San Francisco, California and Roy L. Rogers, General Partner of
Rogers Investment Corp. of Menlo Park, California.

CLIFTON, NJ — Collegiate Presswire, the leading electronic distributor of press materials and marketing information to the nation’s college media, announced today it has completed a second round
of funding from The Palladin Group and other investors.
The company is embarking on the next phase of its growth plan to further build the leading college media distribution company. Financial details were not disclosed.
Participants in the second round include Palladin Opportunity Fund, managed by The Palladin Group, an investment management firm managing a diverse group of funds, as well
as new individual investors and repeat investors from the seed round. As part of the financing, the company also announced that Richard Biebel, of Tanager Capital, representing the
interests of the Palladin Group will join the company’s board of directors.

NEW YORK — Houlihan Lokey Howard & Zukin, an international
investment banking firm, today announced the addition of Jon C. Melzer as a
Managing Director in its New York office.

With more than 20 years of financial services experience, including the
successful completion of more than 100 merger, acquisition and financing
transactions, Mr. Melzer will serve as head of the firm’s mergers and
acquisitions (M&A) practice for its Eastern Region, comprised of offices in
New York, Washington, D.C., Atlanta and Toronto.

LONDON — Accel Partners, a leading venture capital firm dedicated to helping outstanding entrepreneurs build world-class technology
companies today
announced that the firm is in the final stages of closing its Accel Europe Fund with commitments of $500 million. The Accel Europe Fund will be dedicated to investment in and
development of successful European and Israeli start-ups in the communications and software/Internet markets.
Accel also announced today the deepening of its strong talent base in London with the addition of two new partners, Joe Golden, formerly the Managing Director of Business
Development and Strategic Alliances with Cisco Systems for Europe, Middle East and Africa, and Kaj-Erik Relander, formerly the President and CEO of Sonera.

CONCORD, MA — Kodiak Venture Partners, a seed and early stage venture capital firm, today announced
that Bruce Gregory, former president and CEO of Extreme Packet Devices, Inc., has joined
the firm as Venture Partner. In this role, Mr. Gregory will be responsible for supporting
current investments in the Ottawa region and help to identify semiconductor, software and
communications investments. He will also lend his expertise to portfolio companies, as
well as work with Kodiak partners on their investments.

NEW YORK — Switzerland-based ETF Group, named European Venture Capitalist of the Year in 2000, continued its U.S. expansion with
the hirings of Robert Logan and Robert W. Vanech, announced today from the company’s New York offices. Logan will serve as vice president of ETF Group Inc., while Vanech
was named director of business development. The appointments are effective immediately.
Robert Logan comes to ETF Group from J.H. Whitney & Co., where he served as vice president, Internet and software and saw more than a $400 million capital appreciation in
the portfolio he managed. Robert W. Vanech joins the company from Eureka Broadband Corporation, part of ETF Group’s portfolio, which he founded and grew from startup to over 250 employees with
$30 million in annual sales. Vanech was responsible for managing the Company’s corporate and branch sales, marketing and customer care organizations, and for product strategy
and development.

INDIANAPOLIS & MENLO PARK, CA & FORT LAUDERDALEE, FL –Privately held Bioheart Inc. has received, from the Guidant
Corporation, its largest equity investment to date. Guidant Corporation (NYSE:GDT)(PCX:GDT) is a world leader in the treatment of cardiac and vascular disease. Bioheart is
focused on developing cellular-based therapies to regenerate heart muscle tissue.

NEW YORK & PALO ALTO, CA — Wasserstein Ventures today announced the closing of $160 million for Wasserstein Ventures II (WV
II), the firm’s second venture capital fund.
Wasserstein Ventures is the venture capital affiliate of Wasserstein & Co., LP, a leading international merchant bank. WV II brings the total venture capital under management by
Wasserstein Ventures to almost $300 million.
WV II intends to concentrate its capital on early-stage networking and communications companies, specifically in the areas of optics, wireless, semiconductors, digital media and
Internet infrastructure technologies.

LARCHMONT, NY — Bessemer Venture Partners, the nation’s original venture capital practice, today announced that Dev Ittycheria has
joined the firm as Entrepreneur-in-Residence (EIR) in the firm’s Larchmont, New York office.
Ittycheria comes to Bessemer from Breakaway Solutions, a next-generation services firm focused on offering an integrated set of strategy, systems integration, and outsourcing
services.
At Breakaway, Ittycheria was senior vice-president responsible for building and managing the company’s application service provider (ASP) and managed hosting business.

FOSTER CITY, CA — Yaga announced it has completed a $15.2 million series B round of funding. Investors include InfoSpace; Andojo I, LP; MeVC Draper Fisher Jurvetson Fund I; The Individuals Venture Fund (Seed) Q.LP; Altotech II, LP; and the two founders, Chris Kitze and Vijay Vaidyanathan. Yaga’s flagship product, Yaga Publish, is an end-to-end solution for distributing digital files securely, reliably and cost-effectively.

PORTLAND, OR — 800.com Inc., a leading national retailer of
electronics, today announced the closing of a $20 million round of venture funding and a
$15 million line of credit. The funding follows 800.com’s May 2001 asset acquisition of Roxy.com and
EverythingWireless, a top-ten online electronics retailer and a leading direct marketer of
cellular phones — a deal enriching 800.com with 50% more database names, two URLs, a
stronger satellite TV presence, and immediate entry into the cellular phone business.

This round of financing — 800.com’s fifth — brings its total equity funding to $121 million.
Leading the Series E round, comprised largely of returning investors, was OVP Venture
Partners, joined by Vulcan Ventures, Trinity Ventures, APV Venture Partners, Leverick, Ltd.,
Portage Ventures and SAAD Investments Geneva. The $15 million line of credit introduces
a new financial partner to 800.com: Fleet Retail Finance, a FleetBoston Financial (NYSE:
FBF; Boston) Company specializing in retail.

DURHAM, NC — BlueBolt Networks, a software
company serving the $190 billion interiors industry, announced receiving an additional $5.9
million from new and existing investors, to place the second and final closing of its first
round at $8.4 million.

Led by Wakefield Group, new and existing investors in the round include The Atlantis
Group, Charlotte Angel Partners, Gray Ventures, and truePilot, as well as several individual
and strategic investors. BlueBolt Networks announced the first closing of the first round at
$2.5 million in April 2000.


AUSTIN, TX — Venture Watch (http://venturewatchonline.com),
the technology series independently produced by The Capital Network, announced today a
new partnership with Time Warner Cable (TWC) in Austin, an AOL/Time Warner (NYSE:
AOL) Company.

MARLBOROUGH, MA — Proficiency, an innovator in engineering
supply chain collaboration, today announced it has received $27.4 million in its second
major round of financing. The new funding will support Proficiency’s product development,
marketing and sales initiatives. New investors in Proficiency’s Series C round was led by
Carmel Ventures, and joined by Genesis Partners, Lehman Brothers, Koor Corporate
Venture Capital, and Polaris Venture Capital. Also participating are previous Proficiency
investors Charles River Ventures and Eucalyptus Ventures, an affiliate of J.P. Morgan
Partners. Concord Ventures has also previously invested in the company.

NEW YORK/ — DataSynapse, a
leading provider of peer-to-peer distributed computing software platforms for the financial
services and energy sectors, announced today that it has completed a $15 million round of
financing led by Bain Capital Ventures. New investors include First Union eVentures and
Intel Capital.

DataSynapse, a privately held company, is one of the world’s leading providers of
distributed computing platforms. DataSynapse’s flexible peer-to-peer architecture can
harness idle PCs or dedicated servers to increase application turnaround by 100x or more,
at 10% or less than the cost of other computing alternatives. DataSynapse recently
announced First Union as its first customer, and it is currently testing its application with a
dozen other financial services and energy firms. The company will use proceeds from this
round of financing to expand its sales and technology efforts.

SALT LAKE CITY — vSpring Capital, one of Utah’s largest venture capital firms, and Mindwire Inc., Tuesday unveiled an improved vSpring
Website..
The redesigned site will better serve the needs and interests of vSpring’s key constituents while presenting a consistent online and offline image for the fund.

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