XML APPLIANCE LEADER SARVEGA ATTRACTS $10 MILLION IN SERIES B FUNDING
InterWest Partners Joins First Round Investors Bessemer Venture Partners, KB Partners, and ComVentures

Chicago, IL – June 11, 2003 – SarvegaTM, Inc., the leading provider of intelligent XML appliances, today announced that it has attracted $10 million of Series B funding to help the company expand its sales and marketing activities and further its market leadership. The Series B financing brings the total capital raised to date to over $20 million and introduces new investor InterWest Partners to existing investors Bessemer Venture Partners, ComVentures, and KB Partners, who also participated in this round.

The company also announced the appointment of Steve Bowsher, general partner with InterWest Partners, and David Cowan, general partner with Bessemer Venture Partners, to the Sarvega board of directors.

Sarvega will use the additional funds to continue its sales and marketing thrust to strengthen the market leadership position of its intelligent XML appliances. Sarvega’s XPE™ appliances have saved millions of dollars while delivering order-of-magnitude performance improvements at such Global 1000 organizations as 3Com and Fujitsu as well as healthcare organizations such as Chicago’s Mt. Sinai Hospital Systems.

XPE appliances deliver these impressive financial and architectural benefits due to the industry-first approach of transparently decoupling complex XML processing tasks from the application infrastructure and offloading them to the network infrastructure. The XPE family of XML processing appliances is built on Sarvega’s patent-pending core technology, XML EventStream™ Operating System (XESOS™). XESOS, which addresses all facets of XML processing from XSL transformation to XML/Web services security, is the most flexible and comprehensive core technology platform in the market.

"Since pioneering this market, Sarvega has maintained a leadership position through continuous technology developments as well as securing an impressive list of Global 1000 customers. InterWest’s investment conveys our strong belief that Sarvega’s products solve problems that deliver an immediate return on investment for customers," said Steve Bowsher, general partner at InterWest Partners.

"XML enables web services and application integration – and Sarvega enables XML," said David Cowan, general partner of Bessemer Venture Partners. "Sarvega has the team and technology to lead the market for XML network infrastructure."

"We are very pleased that Sarvega’s strong market growth and customer traction are being validated by prestigious venture firms with histories of investing in highly successful companies," said Sunil Gaitonde, co-founder, president and CEO of Sarvega. "We will use this funding to strengthen our momentum in the marketplace, expanding our sales and marketing activities as well as research and development."

About InterWest Partners
InterWest Partners (www.interwest.com), founded in 1979, is a leading diversified venture capital firm focused on building long-term relationships with entrepreneurs and portfolio companies. With $1.6B capital under management, and a current investment fund of $750 million, InterWest’s experienced partners bring together deep domain knowledge in Information Technology and Life Sciences. InterWest takes a long term, collaborative approach to venture funding, providing early stage and ongoing enlightened capital, management coaching and access to a broad network of resources. InterWest Partners has consistently helped grow the most influential companies in Information Technology and Life Sciences. Examples of the firm's investments in Information Technology include: CIENA, Copper Mountain Networks, Lightera (acquired by CIENA), SiTera (acquired by Vitesse), Silicon Graphics, Stratacom (acquired by Cisco) and Xilinx. InterWest Partners has offices in Menlo Park, California and Dallas, Texas.

About Bessemer Venture Partners
Bessemer Venture Partners operates the nation's oldest continuing venture capital portfolio, which contains the companies whose innovations change the world. BVP's partners are industry leaders with, in total, more than a century's experience in building technology companies, within a tradition of hands-on, active venture investing that has continued since 1911. Many leading innovators, including Staples, Parametric, James River Paper, Ciena, Isis, Sirocco, Sports Authority, and Verisign, selected BVP as their early-stage venture partner. BVP has offices near the nation's top technology markets- California, Massachusetts and New York-and can be reached at www.bvp.com.

About KB Partners
KB Partners (www.kbpartners.com) is a Chicago-based venture capital firm established in 1996 to make investments in early-stage technology companies in the Midwestern U.S. KB’s objective is to help build dominant new enterprises by partnering with talented entrepreneurs and experienced managers. KB Partners manages two venture funds totaling more than $95 million. The firm’s investors include high net-worth individuals, investment companies, and institutions with which KB has established relationships.

About ComVentures
ComVentures, based in Palo Alto, California, is a venture capital firm managing over $1.2 billion in capital. ComVentures invests exclusively in early-stage communications and Internet companies focusing on three specific communications sectors: network infrastructure, software and services. For more information, please visit www.comventures.com.

About Sarvega
Sarvega, Inc. (www.sarvega.com) is the leader in intelligent XML appliances, information-aware products that provide Global 1000 enterprises with the smart, fast, and secure infrastructures that are required for XML-based applications such as Web services. Sarvega has been widely recognized by the technology and business community for its innovative technology and strong management team: They were the only Midwest recipients of CMP Media‘s COMET Award, a national award that recognizes top communications companies, and a finalist for PC Magazine’s Tech Excellence Awards and four categories for XML Journal’s Reader’s Choice Awards. Sarvega was also named 2002 Startup of the Year by siliconindia magazine. The company was one of i-Street Magazine’s Top 50 Emerging Tech Companies in Chicago for 2001 and 2002, and co-founder, president and CEO Sunil Gaitonde, was named one of i-Street’s Top 100 people of Chicago's high tech economy. In addition, Sarvega received the Illinois Annual Technology Conference’s STRIVE award.

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Sarvega, Sarvega XPE, XML EventStream , XESOS and XESOS Studio are trademarks of Sarvega, Inc. All other names are trademarks of their respective companies.