360Commerce Raises $12M to Accelerate Expansion Investment will fund product and geographic expansion of leading software providers flexible, store optimization solutions

360Commerce, a leader in Java-based software solutions for multi-channel retailers, today announced it has received $12 million in venture funding. The lead investor is Sierra Ventures, with participation from prior investors SSM Ventures, Lovett Miller, Jefferson Capital Partners and Hill Partners.

360Commerce, a leader in Java-based software solutions for multi-channel retailers, today announced it has received $12 million in venture funding. The lead investor is Sierra Ventures, with participation from prior investors SSM Ventures, Lovett Miller, Jefferson Capital Partners and Hill Partners. 360Commerce will use the capital infusion to expand the product footprint and geographic market reach of their store and enterprise solutions designed to provide retailers with competitive advantage through a combination of industry best practices and adaptive technology.

360Commerces component-based, web-enabled solutions empower excellent customer service through point-of-sale cross-channel options such as buy on the web, pick up in the store; enable operational excellence through a real-time centralized view of store data and operations; and facilitate rapid innovation through their platform-independent, standards-based solutions that are easier and quicker to customize and upgrade," said David Schwab, General Partner at Sierra Ventures. 360Commerces vision, compelling technology and proven ability to execute were the key factors that led us to choose them from the hundreds of business plans we see."

The timing of this expansion is crucial because all key industry analysts have reported pent-up demand for store systems. A recent technology survey conducted by RIS News and Gartner revealed that by the end of 2003, 55% of the respondents will have begun the replacement process for their software to bring next-generation technology to bear on the most important link in the retail process; where the customer and the store meet. And according to the AMR Research Report, New Options for POS Upgrades, November 2001, "70% of the retailers they spoke with cited flexibility as the single largest determining factor in POS selection." The report recommended "the best way to unlock POS is through Java-based, component-based software."

With the right technology and a high-profile customer base that includes 4 of the top 25 U.S. retailers and 2 of the top 10 global retailers, 360Commerce is uniquely positioned to significantly increase market share," said Charles Boyd, president and CEO of 360Commerce. Sierra Ventures has an outstanding track record of investing in enterprise software winners and we are delighted to partner with them. All of our existing investors participated in the funding, underscoring their ongoing confidence in our vision and position in the industry. The Sierra team along with SSM Ventures, Lovett Miller and Jefferson Capital adds a tremendous depth of operating experience that will help 360Commerce catapult to the next level."

About 360Commerce
From the point-of-service to the back office and across the enterprise, 360Commerce's J2EE solutions capture and leverage operational intelligence in real time to help maximize store profitability. Leading multi-channel retailers on 360Commerces customer list include Apple, Burlington Coat Factory, Circuit City, Cole National, The Home Depot, Gap Inc., KB Toys, and Kinkos. 360Commerce products include 360Store Point-of-Sale, Unleashed POS, Back Office, Inventory Management, and 360Enterprise Central Office. The vendor with more Java store systems customers than any other in the retail market, 360Commerce enables retailers to minimize risk and cost of ownership with extremely flexible, open solutions that can be quickly integrated and customized and that maximize both existing and future investments.

About Sierra Ventures
Sierra Ventures, founded in 1982, is a privately held venture capital firm focused on investments across all areas of the Information Technology sector from semiconductors to enterprise software. Sierra Ventures has managed eight venture capital partnerships and currently has more than $1 billion of capital under management. Some of the firm's investments include Combinet (acquired by Cisco), StrataCom (acquired by Cisco), ConvergeNet (acquired by Dell), Quinta (acquired by Seagate), Intuit (INTU), OnLink (acquired by Siebel), Healtheon (merged with WebMD), AmeriGroup (AGP), Micromuse (MUSE), Active Software (acquired by WebMethods), Centex (acquired by WorldCom), and Interact Commerce (acquired by Sage).

On the Net:
360Commerce site: http://www.360Commerce.com
Sierra Ventures site: http://www.sierraventures.com
SSM Ventures site: http://www.ssmventures.com
Jefferson Capital Partners, LTD. site: http://www.jeffersoncapital.com
Lovett Miller & Co. Incorporated site: http://www.lovettmiller.com
Hill Partners site: http://www.hillpartners.com

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Trademarks: 360Commerce, 360Store, 360Enterprise and Unleashed are trademarks of 360Commerce, Inc.