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DataSynapse SEES THIRD YEAR OF TRIPLED REVENUE GROWTH

DataSynapse Inc, an on demand application infrastructure provider and the fastest-growing Grid computing software company for commercial applications, announced at the GlobusWORLD annual conference in San Francisco highlights of its year-to-date worldwide success, including prestigious customer wins, industry awards, new business partners and tripled revenue growth. The company also raised $6 million in growth capital and established new offices in San Jose, Calif., and Paris.

DataSynapse continued to dominate the financial services market in 2003. In the banking and securities sector, prominent new client wins include: Bank of America, Credit Agricole Indosuez, Credit Suisse First Boston, Canadian Imperial Bank of Commerce and UBS. In addition, the company's initial push into the insurance sub-sector resulted in a number of high-profile wins including Northwestern Mutual, Nationwide and GE Financial Assurance. DataSynapse's customer base now includes four of the six largest U.S. banks, two of the largest global securities firms and three of the top 10 U.S. insurance companies.

Reinforcing the growing demand for the broader use of Grid computing technology outside financial services, DataSynapse also achieved customer wins in the key vertical markets energy, industrial and government/public sector. New clients include: one of the world's largest integrated energy companies, Hewitt Associates, a global leader in business services; Bowne & Co Inc, a global leader in document management solutions; and one of the two largest U.S. government-sponsored agencies.

Based on the proven business value repeatedly captured by its customers, DataSynapse won "Business ROI Software Product of the Year" from the Financial Times Business Group. The company beat out a field of 1,000 competitors for this award and was also the only company to receive a second leadership award, "Risk Management Solution of the Year." In addition, DataSynapse was the only company to repeat winning the NY Software & Information Industry/NY New Media Association's "Top Technologies" award in 2003.

"With new wins in energy, industrial, financial services and the public sector, DataSynapse is meeting the growing demand for Grid technology and extending its reach beyond traditional, compute-intensive environments," said Peter Y. Lee, DataSynapse co-founder and CEO. "DataSynapse clients are Grid-enabling a broad cross-section of bottlenecked applications and are documenting success in generating new revenue opportunities, slashing operating costs and improving quality of service."

DataSynapse has continued to extend its application-centric approach by creating integrated, packaged solutions with leading application software providers across sectors. In addition to its partnership with Algorithmics, the global leader in enterprise risk management, DataSynapse has developed co-sell and OEM relationships with ten more independent software vendors (ISVs) including Calypso, HanoverTrade, Milliman USA, SS&C and SAS.

Among other business partner highlights, DataSynapse deepened its strategic relationship with IBM by creating joint Grid computing global market offerings, Customer Insight in Banking and Risk Management and Compliance in Capital Markets and Retail Banking, designed specifically to accelerate analytics for financial services clients.

To support DataSynapse's rapid market expansion in new sectors in the United States and internationally, Bain Capital Ventures and NeoCarta Ventures led DataSynapse's $6 million C round, joined by returning investors Intel Capital Corporation, the New York City Investment Fund, Silicon Alley Venture Partners and Wachovia Strategic Ventures.

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