Battelle Ventures Leads $3.5-million Series A Financing of Sypherlink, a Data-management Software Company

Marks the fund's first investment in information technology 

Princeton, N.J. June 22, 2005 -- Battelle Ventures, L.P., an independent $150-million venture fund, has led the $3.5-million Series A financing of Sypherlink, Inc., a data-management software company based in Dublin, Ohio.

This marks the first investment in the information-technology sector made by the firm, which was joined in leading the financing by Reservoir Venture Partners, a $32-million venture fund based in Columbus, Ohio. A number of angel investors were also involved in the financing.

"The Sypherlink HarvesterTM suite of data-management software products, which the company licenses, significantly reduces the time, effort and cost associated with data sharing and data-integration initiatives. Sypherlink's technology enables companies to quickly understand what data are available and where important relationships exist among multiple data sources," explains Battelle Ventures General Partner Mort Collins.

"This process, often referred to as 'mapping,' is typically manual and one of the largest overall consumers of time and money when rolling out a database initiative," he continues. "Companies can reduce this mapping process from months to just days or hours using Sypherlink's automated mapping and technology solutions."

James Paat, Sypherlink's president and CEO explains: "Several successful benchmark implementations of Sypherlink Harvester's automated mapping technology have shown a 50- to 85-percent reduction in the time, cost and resources associated with data management and data-integration projects. For example, the U.S. Department of Education had conducted a manual data-mapping effort across 17 disparate databases that took five IT consultants some 4,800 hours to complete. With Sypherlink's software, the same project took only 50 unattended hours of running the software and just two hours of human effort."

Paat, who founded the company in October 2001, notes that Sypherlink's sales targets are Global 1000 companies, as well as organizations involved in major data-sharing initiatives that cross multiple industries, such as homeland security and integrated initiatives across local, state and federal justice systems.

"With this infusion of capital, Sypherlink will be able to step up its marketing and sales efforts," adds Collins, who joins the Sypherlink Board of Directors. He notes that Sypherlink is generating revenue and has already established strategic relationships with more than 20 leading national and niche technology product and professional services organizations, including IBM, Allen Systems Group, Teradata and Unisys.

About Battelle Ventures

Battelle Ventures, L.P., is an independent $150-million venture fund that invests in technology companies at many early stages of development, from companies looking for seed or start-up capital through pre-revenue companies raising later rounds of financing. The fund, which is based in Princeton, N.J., is actively seeking to invest in companies in the following five key areas: life sciences; information technology; homeland security; energy; and advanced materials and nanotechnology. Battelle Ventures enhances and adds value to its portfolio companies by leveraging the technologies and expertise of Battelle Memorial Institute and the National Laboratories it manages or comanages for the U.S. Department of Energy. Since it was established in August 2003, Battelle Ventures has invested in the life-sciences sector (Genospectra and Ventaira Pharmaceuticals), the energy sector (PowerZyme), and the homeland security sector (SafeView). With the Sypherlink deal, the firm now has invested in four of its five target areas.

For more information about Battelle Ventures and its previous deals, see www.battelleventures.com.

For more information about Sypherlink, see www.sypherlink.com.

For more information, please contact:
Kristy Campbell
Director of Marketing
Sypherlink
Phone: 614-652-6100 x6113
kcampbell@sypherlink.com