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FaceTime Communications Acquires New Investment to Accelerate Strategic Expansion

Company's Rapid Business Growth and Instant Messaging Market Leadership Result in Late Stage Investment from BA Venture Partners

FOSTER CITY, Calif., Nov. 11, 2002 -- Building on its leadership position and ongoing momentum in the instant messaging (IM) marketplace, FaceTime Communications, the premier provider of network-independent, enterprise solutions for the management and control of IM, today announced a late-stage, growth capital investment from new lead investor BA Venture Partners and existing FaceTime investors Sutter Hill Ventures and TH Lee Putnam Ventures.

BA Venture Partners' sole limited partner is Bank of America, one of FaceTime's largest customers and a world-leading financial services company. By making this strategic commitment to FaceTime, BA Venture Partners further demonstrates the confidence major corporations have in the growth of the instant messaging market and FaceTime's continued leadership in delivering business-critical solutions on a global scale. The terms of the capital were not disclosed, however, the investment was based upon a significantly increased valuation for the Company.

FaceTime Communications provides customers such as Bank of America and over 100 enterprises with best-of-breed, comprehensive IM server solutions that integrate business-critical workflow applications into the world's leading IM networks. The Company is the only vendor of its kind with strategic, authorized alliances with all of the industry-leading network and technology providers such as AOL, Microsoft, IBM Lotus, Reuters and Yahoo!. Last week, America Online, Inc. announced that it selected FaceTime to provide its award-winning IM Director development platform as embedded technology for the new AOL(R) Instant Messenger(TM) (AIM) Enterprise Gateway solution.

The Company will leverage its momentum and utilize this investment to accelerate its expansion of international and partner channels as well as to further develop its market-leading IM infrastructure and business applications.

"The proliferation of instant messaging in business today, with an annual growth rate of 200%, represents a significant market opportunity," said Sharon Wienbar, Director, BA Venture Partners. "This market shift has created a widespread need for enterprises such as Bank of America to leverage products and services that manage and control business-critical communications while enabling users to harness the power and competitive advantages of IM. With more than 100 major enterprise customers, strategic partnerships with the world's leading IM network providers, and network-independent technology, we believe FaceTime is the clear leader in this space."

"Our tremendous customer growth and increasing revenues have made FaceTime stand out as an attractive opportunity for investors," said Glen Vondrick, President and CEO FaceTime Communications. "During the past 15 months, despite market conditions, FaceTime has achieved record revenues with major customer wins and executed on key partnership agreements. By achieving these goals, FaceTime now has over 100 enterprise customers in production with our products. The results of our solid execution have garnered numerous competitive investment bids and an over-subscribed, late-stage, growth capital round with a company valuation that is multiples higher than our previous round. We chose to partner with BA Venture Partners as FaceTime is close to profitability and is poised to help accelerate our growth plans for expansion. We look forward to continuing to set the standard for IM and enabling customers to leverage the power of instant messaging in business."

In addition to its investment, BA Venture Partners Director Sharon Wienbar has been appointed to FaceTime's Board of Directors. Ms. Wienbar joins existing Board members: Tench Coxe, Managing Director of Sutter Hill Ventures; Jim Brown, Managing Director of TH Lee Putnam Ventures; and FaceTime CEO Glen Vondrick.

About FaceTime Communications
Founded in 1998, FaceTime Communications is the leading provider of security solutions for the management and control of greynet applications such as adware/spyware, instant messaging, webmail, P2P file sharing, web conferencing and instant voice. FaceTime delivers the industry's first IMPact Index, which assesses "point-in-time" risks posed by viruses, worms and other malware propagating through greynet applications. FaceTime's award-winning solutions are used by over 600 customers, among them seven of the eight largest U.S. financial institutions. FaceTime supports or has strategic partnerships with all leading public and private IM network providers, including AOL, Google, Microsoft, Yahoo!, IBM, Bloomberg, Jabber and Reuters.

FaceTime is headquartered in Foster City, California. For more information visit http://www.facetime.com or call 888-349-FACE.

About BA Venture Partners
BA Venture Partners, a venture capital partnership, leads start-up to expansion stage investments in networking, semiconductor, software, and biotechnology companies. The firm closed BA Venture Partners VI, a $500 million fund, in 2000. BA Venture Partners' sole limited partner is Bank of America. More information available at: http://www.baventurepartners.com.

Other product or service names mentioned herein are the trademarks of their respective owners.

PR Contact:

Emily Chamberlin
650-762-2945
echamberlin@ar-edelman.com


 
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