Venture capital firms Target Partners and Earlybird announce the investment of five million Euro in interNetwork AG, a software company specializing in the development of load-testing systems for network-based hardware and software components.

Munich, April 8, 2002. Lead investor Target Partners headquartered in Munich, and Earlybird, with offices in Hamburg, Munich and Palo Alto invested a total of five million Euro in Wiesbaden-based interNetwork AG.

Founded in February 1999, interNetwork AG develops load-testing software that provides valuable insights into the optimization and monitoring of network-based hardware and software components. Sm@rtTEST, interNetwork’s flagship product, enables telecommunications carriers and operators, as well as hardware and software manufacturers to test the true performance and availability characteristics of network-engaged components, helping to ensure quality standards. The newly acquired capital will be used to finance the further development of interNetwork’s products and to enable international growth.

Target Partners and Earlybird anticipate the tremendous potential of interNetwork AG
Dr. Berthold von Freyberg, a partner with Target Partners, is convinced of the strengths of interNetwork AG. “Growing competition in the communications and network arena, together with ever-increasing quality-of-service demands by end-users is forcing infrastructure providers, operators and hardware and software manufacturers to re-evaluate the quality of their products. Via sm@rtTEST, InterNetwork is enabling these companies to perform comprehensive qualitative and quantitative load-testing analyses, yielding accurate insights into the expected end-user experiences.”

Dr. Hendrik Brandis, a partner with Earlybird, expands on the reasons for this investment: “Given the quality and experience of interNetwork’s management team, it should come as no surprise that they have been able to develop such an innovative and relevant product technology. 15 years of diligent cooperation has enabled interNetwork to create a team that is as mature and respectable as their product offerings. The establishment of key account customers such as Deutsche Telekom, Nortel, Bell Canada, Arcor, Net.Com and Kabel Deutschland certainly attests to the overall quality of interNetwork AG.”

Karl Kipry, CEO and co-founder of interNetwork AG emphasizes the importance of having joined forces with the right venture capital partners: “With Target Partners and Earlybird as investors, we have taken an important and noteworthy step towards the creation of an internationally successful company. Both investors have extremely valuable operational experience, a network of exceptional industry contacts within our target markets and the willingness to actively accompany us on our way to becoming one of the leading providers of load-testing solutions.”

PricewaterhouseCoopers assisted Target Partners with the financial due diligence for this investment, while legal counsel was provided by S.J. Berwin for Target Partners, Pöllath + Partner for Earlybird, and by Baker & McKenzie for interNetwork AG.


Additional information can be found at:
www.internetwork-ag.de
www.targetpartners.de
www.earlybird.com


For further information regarding interNetwork AG, please contact:
Ernst von Voigt
Bierstadter Straße 7
65189 Wiesbaden
Tel.: +49-611-16657-515
Fax: +49-611-16657-57
ernst.von.voigt@internetwork-ag.de


For further information regarding Target Partners, please contact:
fischerAppelt Kommunikation München GmbH
Michael Brauns
Tassiloplatz 7
81541 München
Tel.: +49-89-747466-22
Fax: 49-89-747466-66
michael.brauns@fischerAppelt.de


For further information regarding Earlybird, please contact:
Daniela von Wedel
Van-der-Smissen-Str. 3
22767 Hamburg
Tel.: +49-40-4329 41-0
Fax: +49-40-4329 41-29
vonwedel@earlybird.com


About interNetwork AG:
Founded in February 1999, interNetwork AG develops load-testing software that provides valuable insights into the optimization and monitoring of network-based hardware and software components. Sm@rtTEST, interNetwork’s flagship product, enables telecommunications carriers and operators, as well as hardware and software manufacturers to test the true performance and availability characteristics of network-engaged components, helping to ensure quality standards. Customers of interNetwork AG include Deutsche Telekom, Nortel, Bell Canada, Arcor, Net.com and Kabel Deutschland.

Further information regarding interNework AG can be found at: http://www.internetwork-ag.de.


About Target Partners:
Target Partners is an established venture capital firm with headquarters in Munich, Germany, that focuses on strategic investments in the IT industry. The company’s close-knit management team draws on significant IT management, venture capital and entrepreneurial experience, enabling them to advise their clients in a broad spectrum of areas. The Target Partners staff has expertise in the development and marketing of products and services, the structuring and growth of organizations, the implementation of rounds of financing, as well as the planning and implementation of corporate IPOs in Germany and in the United States.

The fund’s available assets of 112 million Euro are to be invested in young companies, generally in the first or second round of financing. Investors include DZ Bank and a number of additional European and American institutional investors. Target Partners enjoys an extensive network of contacts in the IT and venture capital industries in both Europe and the United States. For more information, please visit the company’s website at http://www.targetpartners.de.


About Earlybird:
Earlybird is an international venture capital fund with approximately $300 million under management and an investment focus on information technology, telecommunications and healthcare. With offices in Europe (Hamburg, Munich) and the US (Palo Alto), Earlybird is well positioned to take advantage of international opportunities and to assist its portfolio companies in gaining access to the international market place and financial resources. Earlybird's investment professionals have extensive finance and start-up operating experience, providing pro-active support to their portfolio companies. In addition, an experienced network of industry specialists serve on the Earlybird advisory board, assisting Earlybird and its portfolio companies by providing strategic advice and operational support. Additional information regarding Earlybird can be found at http://www.earlybird.com.


  www.internetwork-ag.de