IPOs/Recent Issues: WITNESS SYSTEMS –

Alpharetta, GA

Went public 2/10/2000 at $20 apiece

Filing Range: 3.8 mil. shares @ $15 to $17

Shares Outstanding: 21.24 mil. shares

Underwriters: Chase H&Q

U.S. Bancorp Piper Jaffray/Wit SoundView

FINANCIALS

(Data except per-share in $ thousands)

Y/E Y/E 9 MOS 9 MOS

12/97 12/98 9/98 9/99

Total Revenue $6,184 $13,297 $9,133 $15,136

Net Loss -2,297 -5,271 -4,025 -7,450

Net Loss Per Share -.32 -.76 -.56 -1.15

The Company:

Witness Systems provides multimedia recording and analysis software enabling enables companies to enhance their customer interactions. The company’s eQuality software enables customer contact centers within a company to record and evaluate complete customer interactions through multiple communications media, such as telephone, Web chat and e-mail. By capturing both voice and computer desktop activity and synchronizing them during replay, a company can observe and analyze complete customer interactions as they occur.

Proceeds:

Repay debt ($2.8 mil.); fund sales and marketing in 2000 ($18.0 mil.); fund research and development in ($10 mil.)

Venture Backers:

Battery Ventures, Noro-Moseley Partners, Hambrect & Quist California

Board Members:

Thomas Crotty, Battery Ventures April 1997