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Redleaf's Unique Internet Strategy Attracts Investments From E-Commerce Heavyweights Investments signal support for Redleaf's NetHub Strategy to develop the next generation of Internet firms SARATOGA, Calif. — Dec. 20, 1999 — Redleaf Group LLC, a new Internet operating company with a unique model for developing seed stage business-to-business e-commerce firms, today announced it is securing initial capitalization of $150 million from several leading e-commerce companies and institutional investors to fund Redleaf's launch in five strategic locations. Redleaf will use the investment to establish its operations in key "NetHub" locations to guide seed stage business-to-business e-commerce companies into category leaders. The largest equity holders include Safeguard Scientifics, $60 million (NYSE: SFE) and Novell, Inc., $20 million (NASDAQ: NOVL). Others include The John D. and Catherine T. MacArthur Foundation; affiliates of The Hillman Company; Residentie Investments, the Netherlands; Venture Bank@PNC (NYSE:PNC); Mellon Ventures, Inc. (NYSE: MEL); Wilson Sonsini Goodrich& Rosati; and private investors, including Bill Melton, chairman of CyberCash (NASDAQ: CYCH) and Milan Mandaric. "This support from some of the most notable companies and investors in e-commerce will fuel Redleaf's growth and expansion in areas rich with the resources that incubate the next generation of Internet companies," said John Kohler, Redleaf founder, co-CEO and director of Pacific Operations. The company has established operations in Saratoga, Pittsburgh, Los Angeles, Seattle and Reston, Va., and will branch out over the next several months to Boston, New York, Atlanta and London. "Redleaf has developed an acceleration model that very quickly evolves e-commerce concepts from ideas on the backs of envelopes to companies with lasting value," said Warren V. "Pete" Musser, chairman and CEO of Safeguard. "Redleaf understands how to fuse the best of blue-chip companies with the innovation of the Internet. Safeguard has great confidence in Redleaf's experience and ability to develop category winners." "We're bringing the excellence of Internet marketing, business development and digital incubation resources that exist in Silicon Valley to the communities most likely to spawn the next generation of Internet business-to- business companies," said C. Lloyd Mahaffey, Redleaf co-CEO and director of Atlantic operations. "In addition to capital, Redleaf will offer a range of services including operational support and a 'digital incubator' systems integration capability to help seed-stage Internet firms mature into category winners." "Redleaf's superior operating model and e-commerce focus are complementary with Novell's strategy to accelerate the deployment of our directory-based networking technology in e-business solutions, " said Dennis Raney, Novell senior vice president and chief financial officer. "This strategic investment enables us to participate in the development of companies that will work with us over time in shaping the e-business future." Chief among the resources that Redleaf brings to these locations is the combined experience of its two senior executives. Kohler, a founding executive of Netscape Communications, has more than 20 years of technology experience, including stints with Hewlett Packard, Convergent Technologies and Silicon Graphics. Mahaffey, a former executive with Apple Computer, engineered the billion dollar buyout of VeriFone, the leading Internet payment systems provider, by Hewlett-Packard, while he was a senior VeriFone executive. Since 1996, the Redleaf team has established a successful record of building Internet businesses including NetGravity, which conducted a successful IPO in 1998 and then was acquired by DoubleClick, AdRelevance, a firm recently acquired by Media Metrix, and Moai Technologies, the leading provider of customized online auctions and trading exchanges. Redleaf (www.redleaf.com), with offices in Saratoga, Pittsburgh, Seattle, Los Angeles, and Reston, Va., is an Internet operating company actively engaged in business to business e-commerce through a network of partner companies.
Press Contacts:
Safeguard Scientifics
Novell, Inc.
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