TestMartâ„¢ Raises $26 Million in Third Round Financing

SAN BRUNO, Calif. - August 14, 2000 -
TestMartTM, the leading information and commerce marketplace for the $100 billion precision instrument industry, today announced that it has secured $26 million in third round financing.

Technology Crossover Ventures (TCV), a new investor in TestMart, is leading the round. TCV is joined by Crosspoint Venture Partners and New Enterprise Associates (NEA), who have participated as previous investors in TestMart. Net Market Partners is also a third round investor in the company.

"In today's difficult market for raising capital, investors are targeting businesses with real customers, real revenue growth, and a real plan for achieving significant profitability by leveraging the Internet," said Peter M. Ostrow, President and CEO of TestMart. "The size of this investment from such blue chip investment firms is strong recognition of TestMart's achievement of rapidly building a sound operation. This new funding will make possible strategic internal and external investments that will help us build on this foundation and scale the operation even more quickly," Ostrow continued.

"TestMart is creating a powerful and focused B2B business," noted Brooke Seawell, partner, Technology Crossover Ventures. "It is an excellent example of how an Internet marketplace can better serve a fragmented market such as precision test."

"Our ongoing investment in TestMart is clear affirmation that the company is indeed reinventing commerce in an industry segment that desperately wanted a new way to research, select, and purchase products that are so critical to today's economy," said John Mumford, general partner, Crosspoint Venture Partners.

"TestMart's recipe, marrying deep content with robust commerce and solid customer support, is resonating with the worldwide engineering community," stated Mark Perry, partner, New Enterprise Associates. "We are pleased to expand our partnership with the company."

About TestMart

TestMart is the most comprehensive precision test equipment marketplace on the Internet. The site features massive databases of unbiased, proprietary, and hard-to-find information and a safe secure online store where users can locate, compare, and select from an extensive offering of new and refurbished products. Headquarters is located at 851 Traeger Avenue, San Bruno, California 94066; Telephone 650-624-0525, Fax 650-624-0535. For more information on TestMart, address e-mail to jharrington@testmart.com. The TestMart Web site can be found at https://www.testmart.com.

TCV was founded in 1995 to capitalize on the emergence of the Internet and to create a new model for Internet investing by combining the best of venture capital and public market investing. It is one of the largest venture firms in the country focused exclusively on the Internet, having raised over $2.5 billion since 1995. TCV has twelve partners and is located in Palo Alto, California. The company provides multi-stage venture funding from $3 million to $75 million per company - and leverages its venture activity into the public market. TCV's focus on high growth sectors of the Internet includes e-business applications, Internet infrastructure, Internet services, business-to-consumer, and business-to-business. www.tcv.com.

Crosspoint Venture Partners is a leading Silicon Valley-based venture capital firm focused on helping talented entrepreneurs build great companies. Ranked #1 by Forbes Magazine on the three-year performance of IPOs in its portfolio, Crosspoint invests in companies that have the vision and potential to achieve market leadership, build long-term sustainable value, and remain differentiated over time. www.cpvp.com.

New Enterprise Associates (NEA) is one of the industry's premier venture capital firms. For 21 years, NEA has practiced classic venture capital by investing in early stage companies and working with management to nurture and build companies of real and lasting value. NEA is the leading start-up venture investor in America. www.nea.com.

Net Market Partners (NMP) is the leading accelerator for B2B e-commerce companies. NMP speeds the growth of B2B net-marketplace companies by supplying capital, guidance, and contacts. As one of the first accelerators to focus on B2B opportunities, their clients include emerging exchanges and online marketplaces in a range of vertical business markets. www.netmarketpartners.com

EDITORIAL CONTACT:
Martin Wolf
650.794.3705
mwolf@testmart.com