-Existing Investors Support Company`s Open Source Direction through Participation in Second Tranche-
SAN MATEO, Calif. (April 12, 2005) - Laszlo Systems, developer of the OpenLaszlo open source platform and provider of rich Internet applications (RIAs) and services, today announced it has closed the final of two tranches of its Series B funding. The first tranche was announced in October 2004. All existing investors participated in the Series B, which totaled $6.25 million.
Laszlo Systems` President and CEO, Steve Ciesinski, commented, "Laszlo Systems just concluded an outstanding first quarter with record bookings. We welcomed 12 new customers and received repeat business from 7 existing customers."
He continued, "Since our open source announcement last October, downloads from openlaszlo.org have increased to tens of thousands as online businesses, corporations, and independent software vendors (ISVs) have turned to Laszlo for application development and support. The demand for rich Internet applications continues to grow significantly as companies view an improved Internet user experience as critical to their top-line revenue targets. Our investors` confidence in our strategy and team is endorsed by their participation in this final tranche of our Series B."
MCVP`s Mark Kawahara, who joined Laszlo`s board with the initial Mitsui investment, observed, "There`s no doubt that Laszlo Systems is a key player in redefining the end user experience on the Web. We`re pleased to see their progress, especially the demand for their Laszlo Studios` services and upcoming release of their communications application and other software modules."
Laszlo Systems` business model includes the development of commercial software applications. Laszlo Studios - the Company`s professional services team of expert web engineers and designers - delivers custom development services on the OpenLaszlo platform. The Studios team has been instrumental in helping companies and ISVs bring Laszlo-powered rich client applications to market quickly and cost-effectively. Additionally, Laszlo`s open source initiative generates training, support and development consulting service revenues.
Eric Buatois, Managing Director, Sofinnova Ventures, commented, "Laszlo has rapidly proven its ability to execute on its open source vision, garnering the respect of industry analysts and market leaders, as well as adoption by the developer community. Laszlo`s bold move to open source has enabled it to secure a firm position as a forerunner in the Web 2.0 movement."
With the close of its Series B, the Company has raised $18.25 million since inception. Laszlo`s initial funding of $12 million was announced in September 2002. The Company has earmarked the most recent investment to continue to grow its sales and marketing functions and develop application modules to complement its Laszlo Studios and open source support business.
About Mitsui & Co. Venture Partners
Mitsui & Co. Venture Partners (MCVP) is a provider of early stage venture capital for various types of U.S. technology firms with a special expertise in helping to build their businesses globally. Over the years, they have invested in breakthrough technologies in the communication, software, information series, life science, and medical device industries and accelerated their growth. Located in New York, Silicon Valley and Tokyo, MCVP currently manages over $280 million in capital. For more information about MCVP, visit www.mitsuivp.com.
About General Catalyst Partners
General Catalyst Partners is a private equity firm that invests in exceptional entrepreneurs and technical founders who are building the software solution and technology platform companies that will lead innovation and transform industries. Founded in 2000, General Catalyst Partners leverages its principals` extensive operational, business development and technological expertise to provide portfolio companies with a catalyst for success through business building and partnership development assistance. For more information about General Catalyst Partners, visit www.generalcatalyst.com.
About Sofinnova Ventures
San Francisco-based Sofinnova Ventures, founded in 1974, has $600 million under management. The firm emphasizes a diversified investment strategy through financing seed and early-stage companies in the life science and information technology sectors. Historically, Sofinnova has been associated with leading companies such as Biogen, Collagen, Genentech, Printronix, Tandem Computers and Tandon. More recently, Sofinnova invested in Actelion, Aviron, Element-14 (Broadcom), InterMune, Millennium Pharmaceuticals, Phone.com, Premisys, Seattle Genetics and Tumbleweed Communications. For more information, visit www.sofinnova.com.
About Laszlo Systems
Laszlo Systems is the original developer of the OpenLaszlo open source platform and provider of rich client applications and services that advance the Web experience. The OpenLaszlo open source Platform is an XML-native foundation for building next generation Web applications that increase customer conversion rates and brand loyalty. Laszlo provides comprehensive support services, education, and commercial application modules so that any company can easily make the move to rich client applications. For more information about Laszlo Systems, visit www.laszlosystems.com.
Note to editors: Laszlo is a registered trademark of Laszlo Systems, Inc. Other trademarks and registered trademarks referenced herein remain the property of their respective owners.
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