Santa Clara, Calif. � January 10, 2000 � Perfecto Technologies, a leading developer of innovative eBusiness security software, today announced completion of its third round of financing in which it raised more than $16 million. Led by The Sprout Group, the venture capital affiliate of Donaldson, Lufkin & Jenrette (DLJ), the round also includes affiliates of The Goldman Sachs Group, Inc. and previous investors Sequoia Capital, Intel and Walden Israel. Including this round, Perfecto has raised a total of $24 million.

�With the eBusiness revolution creating new problems of privacy and security for Internet users, Sprout�s investment in Perfecto represents an ideal opportunity for us to participate in the large and growing market of eBusiness security,� said Farrokh Billimoria, General Partner at the Sprout Group and newly appointed member of Perfecto�s Board of Directors. �The combination of its strong management team and proven ability to develop innovative eBusiness security software positions Perfecto as a market leader with the potential to revolutionize security technologies in this marketplace.�

Robin Neustein, Managing Director at Goldman Sachs, said, �Perfecto has identified a significantly under-served area of the Internet security market. The company�s extensive background in information security and growing list of customers puts them in a strong position to be a potent force in the industry.�

Proceeds from the financing will be used to support further development of Perfecto�s flagship product, AppShield, the industry�s first software capable of providing extreme security for customer-facing applications in dynamic eBusiness environments.  The funding will also be used to promote further growth of the company�s sales infrastructure.

�Funding from such top tier investors further validates our business model,� commented Peggy Weigle, CEO of Perfecto. �Our goal is to assist eBusinesses who are concerned about providing the highest level of security possible, but don�t want their development costs or time-to-market compromised. This round of financing will allow us to keep pace with our rapid growth and help us continue to meet the security needs of eBusinesses. �

�We are delighted that The Sprout Group and Goldman Sachs are joining us as investors,� said Eyal Kaplan, General Partner at Walden Israel, which provided the company�s first financing. �It is gratifying to see that Perfecto has already begun to deliver on the promise which led to our initial investment.�

Concurrent with this financing, Farrokh Billimoria of The Sprout Group and John Dillon, President and CEO of salesforce.com, join Perfecto�s Board of Directors. Other Board members include Peggy Weigle, Gil Raanan and Eran Reshef of Perfecto Technologies, Pierre Lamond of Sequoia Capital, Frank Marshall of Timark LP and Eyal Kaplan of Walden Israel.

For Immediate Release
Contact:

Kevin Pedraja
Sterling Communications
(408) 441-4100
[email protected]