Mainspring Raises $32.5 Million in Mezzanine Financing Round

Top Investors Include Crosslink Capital, GE Equity, Lucent Venture Partners, and Others

Cambridge, MA - November 30, 1999 - Mainspring, the leader in helping companies rapidly develop and execute profitable e-commerce strategies, today announced that it has raised $32.5 million in a mezzanine financing round. Lead investor, Crosslink Capital was joined by investors Essex Investment Management, GE Equity, J. & W. Seligman & Co., Lucent Venture Partners, and Sandler Capital Management. Previous investors, Chase Capital Partners, Flatiron Partners, Greylock, Highland Capital Partners, and Softbank Ventures also participated. In connection with this investment, Anthony Brenner, managing director for Crosslink, has joined Mainspring's Board of Directors. Morgan Stanley Dean Witter acted as the placement agent in this transaction. As a result of this financing, Mainspring now has an investment capital base exceeding $50 million.

"The overwhelming success of this financing - which was substantially oversubscribed - validates the differentiated, strategy first approach that Mainspring uses to help clients develop and execute profitable e-commerce initiatives," said John Connolly, president and CEO of Mainspring. "As opposed to I-builders, Mainspring delivers best-of-breed Internet business strategies that go beyond strategies for implementation. We fuse a client's business objectives with the customer experience and bring to the table deep vertical knowledge that is unmatched, and frankly, unavailable in the industry. This approach uniquely positions us to deliver expertise and innovation to clients resulting in Internet strategies that deliver compelling value."

Management noted that proceeds from this financing would be used to continue building on the Company's core competencies as well as for strategic expansion in terms of both geographic presence and new service offerings. Specifically, the Company plans to launch offices in New York, San Francisco, and Chicago. In addition, Mainspring intends to recruit across all levels to ensure the steady augmentation of its foundation of cutting-edge e-business talent. To support continued dramatic growth, Mainspring also intends to increase the sophistication and size of its infrastructure.

"Having established a strong presence in financial services and retail markets, we are also planning to pursue new vertical market segments this year - specifically technology and manufacturing - where we believe there are significant opportunities. In addition, we also look forward to introducing an innovative virtual consulting initiative to expand the consulting services we are currently providing to our clients," Mr. Connolly added.

"We have the advantage of evaluating scores of .com companies as Internet investment opportunities," said Anthony Brenner, managing director of Crosslink Capital. "Mainspring is the only company we have seen focused purely on strategy development fusing business and technology planning. We see hundreds of Fortune 1000 companies' valuations driven by the correct business strategy, not by the sophistication of their web sites. What Mainspring delivers is a strategy first approach that achieves the clients' overall business goals. Mainspring isn't in the game of building better web sites, they are building better businesses."

"Mainspring has been a great partner to our business in helping us develop and strengthen our e-commerce capabilities," said David Shea, SVP of e-Business at GE Capital Real Estate and client of Mainspring.

About Mainspring

Mainspring is the premier eStrategySM consulting firm, helping industry leaders rapidly develop and execute profitable e-commerce strategies. Mainspring accelerates its clients' ability to identify, define, and implement a portfolio of Internet initiatives using a "strategy first" approach that fuses a client's strategic business objectives with the total customer experience. Mainspring applies deep vertical knowledge to provide tangible competitive advantages to clients eager to enhance or launch e-commerce initiatives. Offering a continuum of strategic services that span e-business plan development through commercialization, Mainspring currently works with more than 75 clients.