1. Presented in partnership with Shaking the Money Tree May 18, 2000

2. “Hosting ‘Shaking the Money Tree’ has increased the visibility of GCATT in the venture capital community. We are becoming the premier place to do deals in Atlanta and we’re gaining valuable exposure for our incubator companies.” Dr. Michael Cummings, Director of GCATT

3. We’ve seen a visible difference in the program in the year since it started. The growth in numbers is remarkable. We’re proud to be cosponsors. It gives us “air time” before the entrepreneurs and investors. It’s a closed setting; you don’t feel like you’re going to get pitched. It gives us exposure to other entrepreneurs. It’s nice to see all the geographic specifics. It gives the presentation a real home-town feel. The best value is the networking time with investors. There’s a real start-up atmosphere…it’s a community event…a celebration for Georgia. We’re always comparing ourselves to Silicon Valley. I like the way you guys bring in the two venture capitalists; it gives entrepreneurs exposure to them. You keep getting marquee names too. We pitch “Shaking” to our entrepreneurs. We tell them, “Not only are you going to learn, you’ll see the trends and where the money is flowing.” We’ve seen business plans changed based on the information you present. They also figure out the VC profiles and what’s their way of thinking. Tony Antoniades, ATDC

4. Today’s Program The Money Tree report - Q4 1999 and 1999 Analysis Venture Capital Panel VC 1 VC 2 Question and Answer session

5. PwC Speaker VC 1 VC 2 Speaker Bios

6. Money Tree Survey One page questionnaire mailed to over 900 venture capitalists nationwide Website is available to complete the survey online Responses are analyzed and results are issued nationally and locally Report issued on trends in investing PwC Money Tree Survey is in its 5th year; PwC Israeli Money Tree is in its 3rd year Results available online (www. pwcmoneytree.com)

7. YearDeals Amount 19951,587$ 6,211,216,298 19962,019$ 8,005,600,408 19972,669$ 11,482,149,273 19982,849$ 14,233,292,157 19994,006$ 35,591,680,983 Money Tree National Figures

8. Southeast* Regional Totals YearDeals Amount 1995 127$ 720,757,000 1996 171$ 792,299,568 1997 251$ 1,082,626,000 1998 259$ 1,120,908,504 1999 323$ 2,461,562,399 Southeast region includes the following states: Alabama, Florida, Georgia, Mississippi, Tennessee, South Carolina and North Carolina

9. Georgia Totals YearDeals Amount 1995 32$ 176,785,000 1996 38$ 161,485,000 1997 79$ 290,157,000 1998 83$ 298,717,504 1999111$ 740,193,503

10. Georgia 1995 - 99 Fourth Quarter Performance PeriodDeals Amount Q4 - 1995 12$ 61,300,000 Q4 - 1996 10$ 23,262,000 Q4 - 1997 23$ 97,476,000 Q4 - 1998 20$ 49,493,000 Q4 - 1999 41$ 372,559,000

11. Q4 1999 Highlights Record investment for single quarter ($14.6 billion) nationally, as well as for GA ($372 million). Investments in Q4 ‘99 alone exceeded all of ‘98. Equals $160 million/day! 7 out of 10 of the largest deals in GA history were done in Q4, including largest deal EVER done in GA ($79.1 million). 1,271 companies received money nationally, up from 711 in Q4 ‘98 (302% increase); 41 companies in GA received money, up from 20 in Q4 ‘98.

12. Q4 1999 Highlights (cont’d.) Average deal in ‘99 was $8.9 million, up from $5.2 million in ‘98 (71% increase). 18 companies in the U.S. received over $50 million each. Over 90% in technology deals; of those, >50% internet- related. $19.9 billion in Internet deals, up from $3.3 billion in ‘98. $8.9 billion internet deals Q4 ‘99 vs. $963 million internet in Q4 ‘98.

13. Top 5 Geographic Markets ‘99 Region ‘99$ s % Growth from ‘98 Silicon Valley$ 13.4 billion195% New England$ 4.1 billion104% NY Metro$ 2.5 billion250% SE$ 2.46 billion120% LA/Orange City$ 2.36 billion200%

14. Q4 ‘99 Regional Rankings Q4 Comparison of Change in Investment Dollars Ranked by % of Change between 1995-1998 Grand% change% change Region19951996199719981999 Total95-99 98-99 COLORADO21.1147.7131.898.4606.41005.42772%517% SILICON VALLEY509.6573.3945.11209.75683.18920.91015%370% NORTHWEST68.3157.2142.4116.8622.41107.0811%433% LA/ORANGECO112.592.4171.6149.81022.11548.3808%583% NEW ENGLAND178.8299.4468.1561.21592.63100.2791%184% DC/METROPLEX82.361.377.6273.3639.61134.1677%134% NY METRO133.0167.9159.6221.6977.21659.4635%341% NORTH CENTRAL28.628.057.9131.8209.2455.5631%59% SOUTH CENTRAL10.048.126.337.371.2192.9610%91% SOUTH WEST24.944.063.354.3122.9309.5395%126% MIDWEST127.1143.9183.3266.2623.31343.6390%134% SOUTHEAST232.8155.8384.3216.61065.62055.0358%392% SAN DIEGO93.579.7111.874.1398.7757.7327%438% TEXAS159.972.9273.6124.7620.51251.6288%398% AK/HI/PR1.30.20.80.14.77.0276%3435% PHILADELPHIA METRO87.267.591.374.3318.4638.6265%329% UPSTATE NY18.83.97.241.654.9126.3193%32% SACRAMENTO/N.CAL34.25.010.07.558.0114.770%673%

15. Georgia Deals - Q4 ‘99 Cypress Communications$79,100,000 Global Medical Products$32,250,000 Viewlocity$28,000,000 OneCoast Network Corp.$27,500,000 Usgift.com$27,000,000 eTour Inc. (formerly Juxtanet)$25,000,000 Clear Communications Group$20,500,000 Interland$20,000,000 e-Solutions Software (tie)$10,000,000 Rapid Link, Inc. (tie)$10,000,000 Intline.com, Inc.$ 9,000,000 J3 Technology Services$ 8,000,000 Physician Health Corp. (tie)$ 7,500,000 Pure Packet Comm. (tie)$ 7,500,000 Technology Builders $ 6,100,000 Home Wireless Networks $ 6,000,000 Cammunications.com (tie)$ 5,000,000 hsupply.com (tie) $ 5,000,000 Activegrams Inc. (tie) $ 4,500,000 KnowledgeStorm.com (tie)$ 4,500,000 Utiliman Systems, Inc. $ 4,000,000 Proxima Therapeutics $ 3,500,000 3299 Lenox Rd. (tie) $ 2,250,000 Ockham Technologies (tie)$ 2,250,000 Incanta Inc. (tie) $ 2,100,000 SimplyHealth.com (tie) $ 2,100,000 CaraVita Sr. Care Mgmt. Services (tie) $ 2,000,000 e-Attorney, Inc. (tie) $ 2,000,000 KNOLOGY Holdings (tie)$ 2,000,000

16. Georgia Deals - Q4 ‘99 (cont’d.) VHX Company$1,700,000 Facility Pro $1,500,000 Fountainhead Water$1,200,000 MaxRate.com$ 750,000 Engineered Multimedia (tie)$ 500,000 Infrastream (tie)$ 500,000 Primis$ 465,000 2order.com$ 300,000 Medizeus$ 270,000 Unilink Group LLC$ 250,000 TransNexus$ 34,000 $372,559,000

17. Georgia Deals - Q4 ‘99 by Industry IndustryDeals Amount Business Services 9$ 96,250,000 Software 9$ 47,860,000 Telecommunications 5$ 119,100,000 New Media 4$ 20,600,000 Health Care 4$ 13,300,000 Financial Services 3$ 3,465,000 Medical Devices 2$ 35,750,000 Networking & Equipment 2$ 6,034,000 Consumer Services 1$ 25,000,000 Industrial 1$ 4,000,000 Retailing/Distribution 1$ 1,200,000 Total 41$ 372,559,000

18. Georgia Deals - Q4 ‘99 Stage of Development StageDeals Amount Early 5$ 48,600,000 Expansion 4$ 8,900,000 Late 5$ 59,000,000 Not Categorized 7$ 33,623,000 Start-up/Seed 3$ 9,500,000 Total 41$ 372,559,000

19. Georgia-Based VC Funds Q4 ‘99 Activity Fund*Deals Amount Imlay Investments 10 $ 1,338,000 Cordova Capital 9 $ 6,816,000 Noro-Moseley Partners 7 $ 10,083,000 LiveOak Equity Partners 5 $ 6,625,000 Monarch Capital 5 $ 5,250,000 Alliance Technology Ventures 2 $ 2,800,000 EGL Holdings 1 $ 1,750,000 Fuqua Ventures 1 $ 1,000,000 R-H Capital Partners 1 $ 1,000,000 Intelligent Systems 1 $ 360,000 *funds that reported investments to PwC Money Tree survey

20. Georgia - quarter by quarter 1995 - 1999 (6 Deals) (7 Deals) (12 Deals) (13 Deals) (9 Deals) (6 Deals) (10 Deals) (14 Deals) (18 Deals) (24 Deals) (23 Deals) (19 Deals) (21 Deals) (23 Deals) (20 Deals) (17 Deals) (23 Deals) (30 Deals) (41 Deals) $ in millions 19951996199719981999

21. The National Picture Historical Trends

22. MoneyTree Total Investments 1995 - 1999 (325 Deals) (456 Deals) (369 Deals) (437 Deals) (472 Deals) (551 Deals) (440 Deals) (556 Deals) (575 Deals) (681 Deals) (658 Deals) (755 Deals) (671 Deals) (760 Deals) (707 Deals) (711 Deals) (732 Deals) (998 Deals) (1005 Deals) (1271 Deals)

23. Investment in Software 1997 - 1999 (159 Deals) (193 Deals) (189 Deals) (184 Deals) (212 Deals) (183 Deals) (203 Deals) (197 Deals) (199 Deals) (270 Deals) (235 Deals) (247 Deals)

24. (42 Deals) (59 Deals) (62 Deals) (74 Deals) (51 Deals) Investment in Telecommunications 1997 - 1999 (64 Deals) (67 Deals) (75 Deals) (60 Deals) (85 Deals) (79 Deals) (122 Deals)

25. (49 Deals) (53 Deals) (63 Deals) (77 Deals) (69 Deals) (51 Deals) Investment in Healthcare 1997 - 1999 (57 Deals) (66 Deals) (71 Deals) (65 Deals) (60 Deals) (67 Deals)

26. Total 4,006 $35,591,680,983 1999 YTD Top States # of deals California1,525 Massachusetts 443 New York 211 Texas 228 Colorado 126 Washington 138 New Jersey 89 Illinois 99 Virginia 94 Georgia 111 Florida 76 North Carolina 85 Maryland 75 Pennsylvania 135 Connecticut 65 All Others 506

27. 1999 By Industry 951 346 508 287 298 284 120 250 133 208 170 86 137 69 71 59 29 # of Deals

28. Most Active ‘99 Venture Firms Venture FirmAmount Invested# of Companies Accel Partners$372,572,00091 Advent International Corp.$103,690,00052 Alta Partners/Burr Egan Deleage & Co$ 83,853,83042 ARCH Venture Partners$ 74,202,31464 Atlas Ventures$ 96,134,00040 Austin Ventures$172,534,69258 BancBoston Capital & Ventures$116,475,50150 Battery Ventures$188,684,83552 Bessemer Venture Partners$143,325,00079 Brentwood Venture Capital$190,975,73853 Canaan Partners$101,637,00042 Charles River Ventures$109,145,00046 Chase Capital Partners$407,433,00091 CMG @ Ventures$182,000,00044 Crescendo Venture Management$108,593,81363

29. Most Active ‘99 Venture Firms (cont’d.) Venture FirmAmount Invested# of Companies Draper Fisher Jurvetson$156,045,20066 Enterprise Partners$ 91,578,00045 Greylock$133,465,00051 Matrix Partners$112,750,00040 Mayfield Fund$235,473,43068 Morgenthaler Venture Partners$133,561,71746 New Enterprise Associates$412,034,000121 Norwest Venture Partners$247,449,40974 Oak Investment Partners$358,251,17283 Patricof & Co. Ventures$151,735,00042 Sequoia Capital$401,809,00076 Sprout Group$239,209,26162 St. Paul Venture Capital$ 99,430,00065 Technology Crossover Ventures$204,630,00044 TL Ventures$ 92,223,26949 US Venture Partners$182,800,00065

30. Entrepreneurs and Venture Capital On-Line Resource List

33. Please Contact Susan O’Dwyer, Marketing Manager PricewaterhouseCoopers (404) 870-1374