Press Release - Motive Corporation Company Profile Motive Communications Secures $10 Million in New Equity Capital to Fund Continued Market Momentum Accel Partners and Attractor Lead All-Star Funding Syndicate Austin, TX, August 3, 1998 -- Motive Communications, Inc. (www.motive.com), the leader in the emerging support chain automation software market, today announced it has secured $10 million in additional equity capital from current and new investors. Motive formally launched its products two months ago after a year spent developing and securing blue-chip early customers. The company has already received broad market acceptance, including customer relationships with CompuCom, Disney, JD Edwards, MCI, Netscape, and partnerships with Clarify, Remedy, Scopus, Tivoli Systems and Vantive. Motive will use the new capital to fund expanded sales and marketing activities for rapid market penetration. In this second financing round, first-round investor Accel Partners played a lead role together with a new investor, Attractor. With its new Accel Internet Fund II, which includes Microsoft, Compaq, Lucent, and Nortel as investors, Accel brings considerable strategic partnering leverage opportunities to Motive. Attractor Investment Management brings significant late-stage and public company equity experience as well as an impressive set of active advisors, including Andy Bechtolsheim, Mark Adreessen, Halsey Minor, John Sidgmore, and Mike Stonebraker. First-round investors Austin Ventures and SSM Venture Partners made up the balance of the new equity infusion. Motive's total investment capital is now $14.8 million. Motive's product, the Motive System, unifies all post-sales customer support delivery in a single, Internet-based system, to reduce the time and cost of delivering technical support while improving end-user satisfaction. Leading IT businesses are using the Motive System to provide technical support services to both internal and external customers. "Our founding mission was to relieve the pressure being put on technical support organizations by spiraling costs and increasing user expectations. Early market acceptance confirms that we were right on target," said Scott Harmon, CEO and president of Motive Communications. "We seemed to have grabbed 'first mover' advantage in the support chain automation market, which in turn has allowed us to expand our all-star investor team and add the financial resources required for aggressive market share growth. We're delighted that Accel Partners has increased its investment in our company and that Attractor has selected us as one of its limited number of private investments." "Over the past year, the Motive team has exceeded our expectations in delivering a first-class product and securing an impressive list of customers and partners," said Jim Breyer, managing general partner of Accel Partners. "They are a perfect example of a new breed of Internet software company that is solving large and painful IT business problems by applying new extended enterprise technologies. We are more convinced than ever that the company will become an industry powerhouse that revolutionizes the technical support industry." "Motive's distinct value proposition, early market momentum, and seasoned management team made the company a 'must' investment for us," said Gigi Brisson, general partner of Attractor. "Motive is positioned at the nexus of two major IT trends: Internet delivery and IT outsourcing. With dollars and qualified staff in short supply, traditional technical support models are stretched to the limit, and companies are scrambling for new ways to deliver high-quality services through their own staffs or outside sources. Motive's solution uses the Internet to let internal staffs, outsourcers or a combination of the two deliver efficient, effective support services." Motive plans to use the equity capital to fund a rapid expansion of operations at both its Austin, Texas headquarters as well as a number of field operations throughout the United States. The company will also expand into both Europe and the Far East in the coming 6-12 months with a direct sales and support presence. About Accel Partners Founded in 1984, Accel Partners has a history of excellence and innovation in the venture capital business. With over $800 million under management, Accel has a long legacy of helping entrepreneurs build highly successful companies in three areas: communications, Internet and intranet software, and services in technology and health care. In May, Accel Partners announced the investment by major technology partners in its Internet Technology Fund II, which provides unique strategic advantages for emerging companies in the Internet market. Investors in the fund include Microsoft Corporation, Compaq Computer Corporation, Lucent Technologies, Nortel, and Isao Okawa, chairman of both CSK Corporation and Sega Enterprises, Ltd. This represents the first time that Lucent, Microsoft and Nortel have invested in an U.S. venture fund. For more information, visit the Accel Partners Web site at www.accel.com About Attractor Gigi Brisson and Harvey Allison founded Attractor in November 1996. Its several partnerships invest exclusively in technology, with a primary focus in the enterprise software, Internet, and telecom sectors. The firm currently manages about $150 million and invests in both public and private companies. Previous private investments include VeriSign and USWeb, which are now public; Net Dynamics, which has announced its sale to Sun Microsystems; and Vignette, Marimba, Simplex, Intraware, and Imgis. Attractor can be found on the web at www.attractor.com. About Motive Communications, Inc. Motive's mission is to help its customers leverage support chain automation solutions to cut $25 billion in waste out of high-technology support services by the year 2005. The leader in support chain automation, Motive offers solutions that enable its customers to create automated support chains, resulting in dramatically reduced costs, improved customer satisfaction and increased customer loyalty. Motive's customers, some of the world's most successful companies, are trendsetters committed to using electronic support services to drive competitive advantage. They include leaders from across the high-technology industry, including vendors supporting their own products, outsourcing providers that support other companies' products, and information technology departments supporting large internal user communities. Based in Austin, Texas, and founded in May 1997 by senior technical and management personnel from Tivoli Systems, NeXT Software and other leading software companies, Motive is backed by $14.8 million in funding from Accel Partners, Austin Ventures, SSM Venture Partners and Attractor. Motive Communications may be reached at 512-339-8335, or on the Web at www.motive.com. For more news on Motive Communications, go to http://www.motive.com/News/news.html See how Motive System(tm) Reduces Pain ### The Motive logo, Motive Communications, Motive System, Motive Assistant, Motive Server, Motive Support Desktop and Motive Adapter are trademarks or registered trademarks of Motive Communications, Inc. All other products or services mentioned herein are trademarks of their respective companies. Contact: Claire Campbell Motive Communications, Inc. 512/339-8335, ext. 300 claire@motive.com Tim Turpin Blanc + Otus 415/512-0500 tturpin@bando.com Search the News Archives Home | Daily Report | Resource Center | Company | Affiliations | Research | Contact Us © 1998 Real Market Research Corporation.          Real Market is a registered trademark of Real Market, Inc.