Network Inference Announces $8.1 Million in New Funding

Carlsbad, Calif., October 21, 2004 - Network Inference, the leading provider of standards-based adaptive software infrastructure, today announced the first quarter 2004 close of $8.1 million dollars as part of its Series B venture capital funding round.

The first half of 2004 saw Network Inference relocate its headquarters to the US, build out a new management team, and generate significant customer traction. The latest funding round will be used to further strengthen the sales, marketing, and customer support teams within the company in support of accelerating market and customer demand. The funding round was co-led by top venture capital firms Palomar Ventures and Nokia Venture Partners.

“Network Inference is in an exciting position.” said John Kelly, CEO of Network Inference, “We are seeing significant demand for next generation technologies that solve enterprise IT problems in new ways, with more payback, and less overall maintenance.” Network Inference leverages industry standard specifications and technologies to enable machines to utilize the meaning of corporate data without brittle and time-consuming custom coding.

“We see a lot of businesses on a daily basis.” said Jim Gauer of Palomar Ventures, “Network Inference stood out by having a compelling combination of management experience, marquee-name customer traction, engineering expertise, and groundbreaking technology. Palomar Ventures is pleased to be a part of Network Inference moving forward, I look forward to working with the Network Inference team to build a company that is a market leader and a world-class enterprise.”

“Network Inference is in the right position to capitalize on the growing demand for software that can make sense of the vast amounts of new data being created every year. Nokia Venture Partners is delighted to support Network Inference team as the company continues its expansion bringing innovative enterprise software to Global 2000 companies,” said John Gardner from Nokia Venture Partners, “we look forward to Network Inference’s continued leadership of the industry and ongoing customer success stories.”

About Network Inference
Network Inference is the leading provider of standards-based, enterprise-ready, semantic technologies. Network Inference enterprise solutions offer Global 2000 organizations short-term payback through lower maintenance costs and project risk, and new integration and application capabilities, while providing a standards-driven pragmatic roadmap towards the model-driven Adaptive Enterprise. Network Inference’s flagship Cerebra Server™ and Construct™ visual modeler provide an enterprise-strength integration and business application environment on an SOA ready platform based on the W3C's OWL, RDF, XML, SOAP, and WSDL standards. Network Inference’s corporate offices include Carlsbad CA, Menlo Park CA, Boston MA, and Manchester UK. For more information, see http://www.networkinference.com.

About Nokia Venture Partners
Nokia Venture Partners is a leading global venture capital firm headquartered in Menlo Park, California. Backed by a number of value-add limited partners, the fund leads investments in early stage mobile technology companies around the world. Launched in 1998, Nokia Venture Partners has a strong track record of leveraging its combined resources, experience and contacts to help build successful mobile businesses. The firm also has offices in Washington DC, London, Helsinki, Hertzelia, Seoul, Hong Kong, New Delhi and Tokyo. For more information, visit http://www.nokiaventurepartners.com.

About Palomar Ventures
Palomar Ventures was launched in 1999 by veteran venture capitalists to focus on early stage information technology companies that demonstrate the potential for exceptional growth and market leadership. The partners at Palomar have contributed their energy, strategic insight, network of corporate relationships and recruiting skills to assist in building nearly 50 public companies. Palomar Ventures is currently investing Palomar II, a $220 million fund. Selected investments include Continuous Computing, Composite Software, Dorado, Efficient Networks, Gluecode, Inovys, KnowNow, Network Inference, Syntricity, Virtela, and Voxify.