DataPower Raises $10 Million in Additional Financing

["Kevin Anderson" <kevina@datapower.com>]

DataPower Raises $10 Million in Additional Financing

Atlas Venture Joins Mobius, Venrock, and Seed Capital Investors in
Application-aware Networking Pioneer and Leader; Additional Funding to
Fuel Aggressive Expansion

CAMBRIDGE, MASS -- February 14, 2005 -- DataPower(r), the leading
provider of XML-aware network devices for securing, optimizing and
routing XML messages, announced today that it has secured $10 million in
additional funding, led by Atlas Venture, a leading international
early-stage venture capital firm, bringing DataPower's total venture
capital investment to over $25 million. Atlas Venture joins Mobius
Venture Capital, Seed Capital Partners and Venrock Associates as
investors.

"As a former partner at Seed Capital, an early participant in
DataPower's previous funding, I've had the unique and fortunate
opportunity to watch DataPower not only pioneer XML-aware networking,
but also see the company consistently prove time and again that it is
the market leader," said Jeff Fagnan of Atlas Venture, who is also
rejoining DataPower's board of directors. "DataPower's forward thinking
in management, product development and market execution is a clear
indication that it is the unmistakable leader in this fast growing
application-aware networking space."

DataPower will use this funding to accelerate and expand its global
marketing and sales, in addition to seeking opportunities for strategic
acquisitions that could help meet DataPower's accelerated growth,
customer demand and its overall market opportunity for
application-oriented networking. Founded in 1999, DataPower invented its
now patented XG3 technology that powers the first intelligent, wirespeed
XML-aware networking products in the DataPower XA35 XML Accelerator; the
DataPower XS40 XML Security Gateway; and the DataPower XI50 Integration
Appliance. DataPower's true network devices are the most widely deployed
XML appliances with Global 1000 firms and leading organizations that
include ADP, BAE, Bell Canada, Booz Allen Hamilton, Cendant, CIBC, the
Commonwealth of Massachusetts, Department of Defense, GFKL, The
Hartford, Hemscott, JPMorgan Chase Bank, Leader Technologies, Navio,
Northrop Grumman, Pfizer, Principal Financial, Royal Bank of Canada,
RouteOne, UBS, U.S. VA, and Wachovia.

In addition to this great end-user traction, in 2004 DataPower was the
first to break the Gigabit Barrier for XML processing with the
introduction of its fourth generation ASIC-based XML chipset, XG4.
DataPower's XG4 subsystems offer OEMs DataPower's field-proven XML
processing technology in a broad range of form factors, speed ratings
and features. The XG4 product family allows OEMs, such as network
vendors or blade server manufacturers, to embed XML Web Services
security in traditional firewalls or security switches, SOAP load
balancing in server load balancers, XML acceleration in routers, or XML
virtualization capabilities in blade servers.

"DataPower's products help organizations move to next-generation IT
architectures by reducing operational complexity, improving performance
and enabling security for XML, Web services and integration in the
network, which continues to be a top priority for enterprises," said Jim
Ricotta, president and CEO at DataPower, and formerly general manager of
Cisco Systems' (NASDAQ: CSCO) Content Networking Business Unit, "This
additional round of funding enables us to accelerate our rapid expansion
worldwide in order to capitalize on the tremendous opportunity and
potentially further our growth through strategic acquisitions."

"The Internet is evolving rapidly toward a service-oriented framework
where applications are implemented as services, communicating over the
Internet via XML," said Cheng Wu, Chairman of Acopia Networks, formerly
founder & CEO of ArrowPoint Communications, and DataPower board member
since early 2002. "As a pioneer and market leader of wire-speed XML
networking, DataPower is uniquely positioned to provide enabling
building blocks that allow the Internet to be transformed from today's
packet networks to tomorrow's application-aware message networks at the
Internet scale."

About Atlas Venture
Atlas Venture is the leading international early-stage venture capital
firm, investing in information technology, communications and life
sciences companies. Founded in 1980, Atlas Venture has organized six
international funds, and currently manages $2.1 billion in committed
capital. The Atlas Venture investment team comprises seasoned operating
executives and career venture capitalists who have been deeply involved
in the formation and development of more than 300 companies worldwide.
For more information about Atlas Venture, go to www.atlasventure.com.

About DataPower
DataPower provides enterprises with intelligent XML-Aware network
infrastructure to ensure unparalleled performance, security and
manageability of next-generation applications and XML Web Services.
DataPower's patented XML Generation Three (XG3(tm)) technology powers
the industry's first wire-speed XML-aware networking devices that
provide immediate return on technology investments while streamlining
application deployments. Founded in 1999, DataPower is privately held
and based in Cambridge, MA. For more information about DataPower
Technology, please contact 617-864-0455 or visit www.datapower.com