MENLO PARK, Calif., May 7, 2001 - Foundation Capitala venture capital firm committed to supporting entrepreneurs and their companies, today announced it has closed a $595 million fund, Foundation Capital Fund IV. Participating in the fund are new limited partners Harvard, Yale and University of Texas, as well as all existing limited partners.

Foundation Capital will continue to focus on Internet infrastructure, enterprise applications, telecommunications and networking opportunities. The firm's mission with Fund IV is to build on the success of existing investments in innovative young companies such as AirFiber and Vivace Networks, as well as established industry leaders, such as Commerce One and Interwoven.

"Foundation Capital has established itself as an outstanding venture capital firm, and embodies the entrepreneurial spirit. This fourth fund is a testament to its success and we are pleased to be part of it," said Peter Dolan, Director of Private Equity at Harvard Management Company.

Composed of former operational executives with entrepreneurial experience, Foundation Capital's partners come from Cadence, Clarify, Excite@Home, Netscape, Network Appliance, Oracle, and SGI. Foundation Capital's general partners include Bill Elmore, Kathryn Gould, Paul Koontz, Mark Saul, Mike Schuh, Adam Grosser and partner emeritus, Jim Anderson.

Foundation Capital's Fund IV welcomed new limited partners Harvard, Yale, University of Texas, VenCap International, CSFB Investment Management, Champion Ventures, Tucker Anthony, and Pilot House. All of Foundation Capital's existing limited partners participated in Fund IV, including Ameritech/SBC, Bank of America Capital, California Institute of Technology, Co-operative Insurance Society, Commonfund, Dartmouth College, FLAG Venture Partners, Kauffman Foundation, GM Investment Management, HarbourVest/Mohawk River Fund, Horsley Bridge, HP/Agilent Retirement Plans, Hewlett Foundation, James Irvine Foundation, Henry J. Kaiser Foundation, JP Morgan, Knightsbridge, Legacy Venture, MacArthur Foundation, MONY Group, Northwestern University, Phoenix Home Life Mutual Insurance Company, Searle Family Trusts, University of Chicago, UNC Chapel Hill, The Wellcome Trust, and Westpool/LMS.

About Foundation Capital
Founded in 1995, Foundation Capital is a venture capital firm committed to supporting entrepreneurs and their companies, targeting innovative opportunities in telecommunications and networking, Internet infrastructure, and enterprise software.