FOR IMMEDIATE RELEASE

Microsoft Executive and Silicon Valley Entrepreneur Karl Jacob
Returns to Invent the Next Big Thing

Karl Jacob Joins Benchmark Capital's Entrepreneur Residency
to Create Another Successful Startup

Internet Summit '99, Laguna Niguel, California, July 19, 1999 - Coming full circle, Microsoft executive and Internet pioneer Karl Jacob today joined Benchmark Capital as entrepreneur-in-residence (EIR). Jacob returns to his entrepreneurial roots in Silicon Valley where he founded Dimension X, an Internet software and consulting firm which was the first Java startup.

"Karl has played an instrumental role in developing today's Internet landscape," said Danny Rimer, managing director of Internet research for Hambrecht & Quist. "I'm convinced that his next venture will be one to monitor very closely."

Benchmark's residency serves as an incubator for new business ideas and technology startups. Jacob is one of the few people with management, technology and marketing success at both startups and established companies. He was a manager at Sun Microsystems, founder and CEO of Dimension X and an executive at Microsoft.

"In our business, talent like Karl's is rare," said Kevin Harvey, general partner of Benchmark. "We recruited him because he's the kind of CEO we love to see at the helm of our startups. The EIR program will give him access to the partners and the time to cultivate a business that will storm out of the gates and realize long-term growth."

Microsoft acquired Dimension X in May 1997. Jacob ran the business and technology teams that shipped two new Microsoft applications and integrated Dimension X's technology into Internet Explorer 4 and 5. He then proposed a new business opportunity to senior management. The result was a new unit within Microsoft's Office organization that under Jacob's direction developed Vizact 2000; the first application to enable Office users to create documents that leverage the dynamic nature of the Web. The product is slated to appear in retail stores this fall.

"Microsoft was good to me, but it's great to be back," said Jacob. "Learning the techniques that made Microsoft successful is an education you can't get anywhere else. But the chance to work with a VC that has helped build some of the leaders in the Internet space is an opportunity I can't pass up."

Founded in 1994, Dimension X was the first startup to develop software products and Web sites based on Java programming language. With its award-winning applications Liquid Motion and Liquid Reality, the company created sites for Fox Broadcasting, Intel, MCA, Sega and other entertainment and business leaders.

Eric Greenberg, an alumnus of the Benchmark program and chairman and founder of Scient, noted: "Karl is a rare breed among CEO's. Most CEO's favor business or technology. Karl excels at both. He has the vision to see what's coming next and the business acumen to capitalize on it. You couldn't ask for a better track record at Sun Microsystems, Microsoft and two Internet startups. Karl's next venture is sure to be another winner."

In 1996, Dimension X attracted the attention of Microsoft, which licensed the company's software to use in future versions of Internet Explorer. Both Microsoft and Sun Microsystems made bids to acquire the company. Microsoft's expertise in marketing software to consumers and success in the consumer software space made it the right choice for Dimension X.

Jacob is known for being ahead of the curve. In 1993, he was one of the founders of On Ramp, now Think New Ideas. An early e-business solutions firm, On Ramp created some of the first corporate Web sites on the Internet for AT&T, Sprint and Reebok, among others. Jacob served as On Ramp's chief technology officer and worked with Fortune 500 clients and Hollywood studios to develop their Internet business strategy.

Jacob began his career as a programmer at Sun Microsystems, working in the Advanced Technology group, several of whom would go on to create Java. He took a different path at Sun when he invented and led the team to create Roam. Roam is now known as Solstice Mail, Sun's corporate mail solution with over 10 million users.

Benchmark's entrepreneur residency program has spawned many of today's most successful technology companies. Other past entrepreneurs-in-residence include Anthony Alles, founder of Shasta Networks; Mike Farmwald, founder of Rambus; Jeff Hawkins, founder of Palm Computing; Keith Krach, founder of Ariba; and Danny Shader, cofounder of Accept.com.

Company Background

Benchmark Capital was founded in 1995 with the mission of helping talented entrepreneurs build major technology enterprises focused on long-term growth. Benchmark takes a labor-intensive, team-oriented approach to venture investing in order to deliver a superior level of service to its portfolio companies. Benchmark’s portfolio includes franchise companies such as Ariba (NASDAQ: ARBA), Critical Path (NASDAQ: CPTH), E-Loan (NASDAQ: EELN), eBay (NASDAQ: EBAY), Genesys Telecommunications Labs (NASDAQ: GCTI), Northpoint Communications (NASDAQ: NPNT) and Scient (NASDAQ: SCNT). Managing more than $400 million in committed venture capital, Benchmark focuses on early-stage investing in markets where the partners have directly relevant experience. These markets include consumer devices, e-commerce, application services, networking equipment, semiconductor, software, and telecommunications services. For more information on Benchmark, visit their Web site at www.benchmark.com.

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EDITORIAL CONTACTS:

Michelle Goguen Hurley
Goguen & Associates, Inc.
(541) 387-8800
michellegh@goguen-pr.com