- System 1 Software, Inc., today announced it has closed an $18 million round of venture equity financing co-led by Spectrum Equity Investors and Polaris Venture Partners, with investments from Merrill Lynch KECALP, as well as existing investors The Benaroya Company and Voyager Capital. The company has also changed its name to Capital Stream, Inc., effective immediately, to better reflect its commitment to create the most powerful and fully integrated e-commerce marketplace solutions for the global business finance market. The company will do business as CapitalStream.

The investment will support growth of CapitalStream's global service, CapitalStream.com (formerly e-FinanceChannel.com), the industry's first web-based real-time business credit solution. CapitalStream.com provides the e-commerce infrastructure and tools for financing firms, B2B portal companies, and their customers to transform their business. CapitalStream is executing on its vision of enabling sources of capital to electronically service their customer's credit origination needs over the Internet. The company is creating an industry-wide network linking financing partners in both the origination and secondary markets. The company's successful rollout of CapitalStream.com to early adopters has attracted interest and early participation from over 25 leading funding sources and their customers representing $2.8 billion in annual commercial financings.

"The dramatic interest we have seen in our integrated suite of e-commerce and business automation solutions is one reason we've attracted this caliber of venture partners," said Stephen Campbell, president and CEO of CapitalStream. "This round of financing, our new name change, and our forthcoming product announcements, will allow us to aggressively execute our strategy of becoming the leading provider of online business credit solutions fueling the global business finance industry."

"We were immediately impressed with the solutions CapitalStream offers the industry today and doubly impressed with the direction they are going in the future," said Vic Parker of Spectrum Equity Investors. "With their substantial market penetration and knowledge of e-commerce and the financial industry, we feel they are ahead of the competition and are well positioned for continued success."

Seattle-based CapitalStream is a privately held company that is the leader in fully integrated e-commerce marketplace solutions for the global business finance market. With over 570 customers, CapitalStream products facilitated an estimated $8.5 billion in asset-based financings in 1999. The company helps its customers streamline credit operations, improve competitiveness through e-commerce services, and grow revenue and profitability. Its integrated suite of products and services are used by many of the world's leading financial and manufacturing companies to improve credit transaction processing, customer marketing and services, and credit decision making. CapitalStream is a registered Microsoft Solutions Provider and member of the Oracle Partner Program.

Jennifer Fox
Capital Stream, Inc.
206-548-1651
jenniferf@capitalstream.com

Scott Battishill
DDB Seattle
206-464-0197
scott.battishill@sea.ddb.com