Scali Secures $7.5 million in Series C Financing

Scali Secures $ 7.5 million in Series C Financing

Oslo, Norway - July 12, 2004 - Scali AS, a leader in high performance clustering solutions, announced today that it has secured an additional $ 7.5 million in venture capital funding. New investor Atlas Venture led the round with participation from existing investor Four Seasons Venture. The new round of funding will be used to extend the company's presence in the US market, fund product development and continue to build relationships with key strategic partners such as Dell, HP and IBM. As part of the investment, Atlas Venture Senior Partner Alexander Bruehl will join the Scali board of directors.

"The funds raised will be used to continue the execution on our aggressive expansion strategy and fuel the development of our products and services," says Bjorn Skare, president and chief executive officer at Scali. "In 2003, Scali successfully focused on commercializing our organization and products and building our international presence by adding three European and two North American offices. In order to continue to leverage our existing partnerships with Dell, HP and IBM, Scali will now intensify our investment and presence in the US."

"Atlas Venture made the investment in Scali based on its strong position in the clustering marketplace," says Alexander Bruehl, senior partner at Atlas Venture and member of the Scali board of directors. "Scali has demonstrated the ability to deliver value to customers and partners and execute on its business model. We believe Scali is uniquely positioned to capitalize on the rapid adoption of clustering and grid based technology. We are excited to be joining the Scali team."

"The addition of Atlas Venture as an investor in the company is a strong vote of confidence in the Scali team and their ability to be a successful supplier of leading software to the high-growth cluster and grid market," says Bjarne Lie, Partner at Four Seasons Venture and member of the Scali Board of Directors. "The funding enables Scali to pursue attractive opportunities and expand from the high performance computing niche market into mainstream enterprise data centers and further strengthen its global market presence."

Scali continues to demonstrate traction in the Linux clustering market. In the first six calendar months of 2004, Scali sold the same number of licenses as the company sold in all of calendar 2003. In addition, the company proved their business model by securing a number of partner agreements. One of these agreements was the opening of the Dell Cluster Expert Center which resides at Scali's European headquarters and serves Dell's EMEA (Europe, Middle East and Africa) customer base for high performance clusters. Scali also continues to close important client engagements in North America and Europe, adding to the existing customer base which is located in 24 countries.

About Atlas Venture - Atlas Venture is a leading international early-stage venture capital firm, investing in communications, information technology and life sciences companies. With offices in Boston, London, Munich and Paris, Atlas Venture divides its investments between the United States and Europe. Founded in 1980, Atlas Venture currently manages $2.1 billion in committed capital. The Atlas Venture investment team is comprised of seasoned operating executives and career venture capitalists who have been deeply involved in the formation and development of more than 300 companies worldwide. For more information about Atlas Venture, go to www.atlasventure.com.

About Four Seasons Venture - Four Seasons Venture is a leading Nordic venture capital fund based in Norway. Four Seasons Venture is focusing on investments within ICT, BioTec and Energy. The latest fund, Four Seasons Venture IV - established in October 2003 with NOK 590 million, brought total capital under management up to NOK 1,4 billion. The partners at Four Seasons Venture offer a balance of strong operational start-up and venture capital expertise, along with clear judgment, dedication and integrity. This combination has made the firm an effective partner of entrepreneurial teams since its inception in 1985. With a philosophy of active ownership, the ten partners aim to deliver results through strategic insight, operating guidance, and business development activities. (www.fsv.no)

About Scali - Scali is a leader in delivering scalable, high-performance cluster software and solutions. Companies and institutions are able to leverage high performance and reliable parallel processing platforms while substantially reducing their technology investment and improving their price performance ratio. Scali has strategic relationships with industry leaders such as Dell, HP, IBM and Intel. Customers include companies such as DaimlerChrysler, Lockheed Martin and Rolls-Royce. Founded in 1997, Scali has received venture funding from Atlas Venture, Four Seasons Private Equity AS, Four Seasons Venture IV AS, Intel Capital and Kongsberg Gruppen. The company is headquartered in Oslo, Norway with sales and support presence in France, Germany, Great Britain and the United States. (www.scali.com).

Investor Contacts Atlas Venture Sarah Helm, Director of Market Development +1 781-622-1721 This email address is being protected from spam bots, you need Javascript enabled to view it

Four Seasons Venture Bjarne Lie, Partner +47 918 15 508

Scali Contact Katharina Salbu, Director of Marketing +47 22 62 89 84 This email address is being protected from spam bots, you need Javascript enabled to view it