MENLO PARK, Calif., September 10, 2001 - Foundation Capital, a venture capital firm committed to supporting entrepreneurs and their companies, today announced that Paul Holland has joined as venture partner. Holland brings significant operational experience to Foundation Capital; most recently he was senior vice president of worldwide sales for Kana Communications (Nasdaq: KANA). Previously, Holland served as vice president and general manager at Pure-Atria (RATL).

"Over the years, I have been fortunate to work with many exceptional venture capitalists in Silicon Valley and beyond," said Holland. "When it became time for me to consider joining a VC firm, I elected to join Foundation because I was overwhelmingly impressed with how committed they are to the success of their portfolio companies. Foundation thrives on becoming involved very early in the formation of extremely high quality start-ups, which is a perfect match for my experience. I look forward to contributing to Foundation's future success."

"At Foundation Capital, our goal is to deliver superior returns in the form of successful new company creation. Our team's track record includes CommerceOne, Interwoven, Onyx, Adaptec, Auspex, Documentum, Netzero, WindRiver, NCD, and numerous companies acquired by Cisco and Nortel," said Bill Elmore, general partner, Foundation Capital. "Paul brings the right combination of technology and operating experience that our team demands. With Paul on our team, we will continue proving out our commitment to supporting entrepreneurs, and our passion for building great companies."

Holland's experience has been focused on building and growing enterprise software companies. While senior vice president of worldwide sales for Kana Communications, Holland's team acquired more than 900 customers in over ten countries with sales rising over 5,000 percent over a period of three years. Prior to Kana Communications, Holland worked for Pure Software where he served in several key North American and international management roles. Over the five years he was with Pure Software, later Pure Atria, he helped grow revenues from $2 million to more than $100 million. Holland began his professional career at SRI International (formerly the Stanford Research Institute).

Paul Holland will join the seven partners that comprise the Foundation Capital team.

Each partner brings unique technology, operational and investment experience to the team.

Foundation Capital Team
Jim Anderson (cofounder)
Founded Merrill, Pickard, Anderson & Eyre
Holds MBA from Stanford, BSEE and MSEE from Purdue
Previous boards: Auspex Systems, 3Com, Bridge Communications, NCD, NET and others

Bill Elmore (cofounder)
Former CEO of Visual Engineering
Holds MBA from Stanford, BSEE and MSEE from Purdue
Boards: CommerceOne, Onyx Software, Wind River Systems, Atheros Communications and others

Kathryn Gould (cofounder)
Former original vice president of marketing at Oracle
Holds MBA from University of Chicago and BS in Physics from University of Toronto
Boards: Chordiant, Vivace Networks, AirFiber, Interwoven, and others

Adam Grosser
Former president of @Home
Former founder/CEO of Catapult
Additional management experience: LucasArts Entertainment, Sony Pictures and Apple Computer
Holds MBA, BAS & MS degrees from Stanford
Boards: OptIC and Peribit Networks and others

Paul Koontz
Former original vice president of marketing at Netscape
Holds a Masters in Engineering Management from Stanford, BS in Mechanical Engineering from Princeton
Boards: Financial Engines, Pacific Edge, Onyx Software, the Stanford University Daper Fund and others

Mark Saul
Former CEO of Acuity
Former vice president of marketing at Network Appliance
Former vice president of sales at Pure Software
Holds MBA from Harvard, BS in Engineering & AB in History from Stanford
Boards: Agile Storage, Solar Flare Communications and others

Mike Schuh
Former founder/CEO of Intrinsa Corp.
Former vice president of sales at Clarify, and at Cadence Design Systems
Boards: Netflix and Responsys.com

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. In May of 2001, Foundation announced the close of Foundation Capital Fund IV, a $595 million fund. Fund IV participants included new limited partners Harvard, Yale and University of Texas, as well as all existing limited partners.