CUPERTINO, CA -- (MARKET WIRE) -- 03/21/2005

OuterBay, a leader in information lifecycle management (ILM) solutions for applications and databases, today announced it has received $12 million in Series C financing. Focus Ventures led the round with a $4.2 million investment, bringing OuterBay's total funding to $40 million. The round was completed at an increased valuation over the prior round, which occurred in June of 2003.

Previous investors BA Venture Partners, LeapFrog Ventures, Mayfield, and Redpoint Ventures also participated. The financing will be used to expand field and product operations for OuterBay's ILM products which lower IT infrastructure costs, increase application performance and help companies comply with data retention regulations. With this round, OuterBay is positioned to bring the company to profitability.

"OuterBay has a great reputation with its customers, including several Fortune 1000 companies with whom we spoke," said Steve Bird, Focus Ventures'

general partner. "In our conversations, we found that many of chief technology officers are looking for better ways to reduce the cost of high-end storage without compromising application performance. OuterBay is in a unique position to become the principal market leader in the information lifecycle management space and we are pleased to support the company's products and their outstanding team."

OuterBay's Application Data Management (ADM) Suite lowers the total cost of ownership on server and storage investments and improves application performance by assigning data to storage infrastructure tiers based on its value to an organization. Real-time user access to archived data allows users to set aggressive data retention policies, and keep months, not years of data in the production environment, while meeting increasingly stringent data retention regulations and guidelines. OuterBay solutions allow customers to place the right data in the right place at the right time for structured data in enterprise applications and databases. Some of the world's leading companies rely on OuterBay's ILM solutions to keep their systems running smoothly, including Arvin Meritor, Motorola, POSCO and Sun Microsystems.

"We are entering 2005 with a strong vote of confidence from our investors after a landmark year, during which we achieved record revenues and cemented strategic partnerships with EMC, Sybase, Nihon Unisys and NEC," said Michael Howard, chief executive officer of OuterBay. "Focus Ventures, with their Fortune 500 corporate partners and extensive network in Asia, is a valued addition to our group of investors."