CenterBeam's new strategic investors include: Apax Partners and its U.S. member firm, Patricof & Co. Ventures, which comprise one of the world's leading private equity groups, managing more than $7 billion on behalf of major institutional investors in the U.S., Europe, Asia and Israel; Equity Office Properties Trust (NYSE: EOP), the nation's largest publicly-held owner and manager of office properties with a national portfolio comprising 99 million square feet; Merrill Lynch, one of the world's leading financial management and advisory companies; Charter Growth Capital, an established expansion-stage venture capital firm focused on investing in emerging market leaders; EDS Ventures, EDS' venture capital group, invests in digital economy companies with leading edge technologies that are aligned with EDS' corporate strategy and operations; and Comdisco, a investment partner with a wide variety of financing products with more than $2.1 billion committed to more than 750 venture capital-backed companies.

"Despite the current volatility in the capital markets, new investors are still willing to invest in companies with a solid business model and long-term growth potential," said Sheldon Laube, Chairman and CEO of CenterBeam. "The combination of CenterBeam's proven ability to deliver an enterprise-class technology infrastructure and the strength of our execution team were key factors in securing this strategic round of funding. We are now well positioned to meet the growing demands of our customers as well as continue our leadership role in the IT outsourcing market."

Returning investors in this funding round include: Accel Partners, CrossPoint Venture Partners, Dell Ventures, Intel Capital, Impact Venture Partners, New Enterprise Associates and Tangent Fund Management.

According to Ron Weissman, Venture Partner, Patricof & Co. Ventures, "Despite two decades of investment in 'ease of use', information technology infrastructures are still harder to maintain than they should be. Businesses spend too much money and waste too much time and staff trying to keep their computing environments operational. CenterBeam is leading the way in developing an innovative approach to overcoming the IT management and support burden. Together with our partners throughout the Apax Partners network in Europe and the U.S., we look forward to extending CenterBeam's service domestically and internationally in 2001."

The CenterBeam Value Proposition
Businesses today are faced with many complex issues, not the least of which is implementing, managing, and supporting their IT infrastructure. According to IDC, IT spending by U.S. small businesses alone will approach $114 billion by 2002. In 2003, U.S. companies overall are expected to spend $545 billion on information technology.

The key components of the CenterBeam's enterprise-class technology service are a wireless LAN solution, Dell PCs and servers, Microsoft Windows/Office 2000, HP printers, high-speed Internet connectivity, daily data backup and recovery, comprehensive security, hardware/software upgrades, and dedicated customer support. All of these services are engineered into a completely managed IT solution for a monthly, per user fee.

The predictable monthly pricing model is a dramatic shift in how IT services are offered and how companies, manage, deploy and build their IT infrastructures. Instead of having to make large up-front capital investments in hardware, software, and staff, the CenterBeam customer has a predictable cost model that covers all their IT costs. The fixed fee alleviates customers' concern about unexpected downtime, repair costs, changes in personnel and upgrades.

"In today's business environment, technology and talent are critical," said Equity Office's Michael Sheinkop, senior vice president, Business Development Access. "Our alliance with CenterBeam enables us to offer a complete IT solution to small and mid-sized businesses, which comprise a significant portion of our customer base. We believe the CenterBeam service can help these businesses become more competitive, which is why we've taken our strategic partnership with CenterBeam to the next level through this capital investment." CenterBeam is currently a preferred IT infrastructure provider for EOP's customers across the country.

The CenterBeam service is currently available nationwide.

About CenterBeam
CenterBeam provides a total managed IT infrastructure that includes superior technology and services. By removing the burden of managing and supporting information technology, CenterBeam enables its customers to focus on growing their businesses. CenterBeam has been selected as one of the "Hot 100" companies by Upside Magazine, and a company "Most Likely to Succeed" by Technologic Partners' Enterprise Outlook conference attendees. The privately held company's investors include Accel Partners, Apax Partners and its U.S. member firm Patricof & Co. Ventures, Bluevector, marchFIRST's exclusive investment partner, Charter Growth Capital, Comdisco, CrossPoint Venture Partners, Dell, Equity Office Properties Trust, EDS Ventures, Impact Venture Partners, Intel, Merrill Lynch, Microsoft, New Enterprise Associates, and Tangent Fund Management. Headquartered in Santa Clara, Calif., CenterBeam can be reached at (408) 844-0900. For information on the company visit www.CenterBeam.com.