Unitrends Software Corporation Secures $8.1 Million in B-Round

Unitrends Software Corporation Secures $8.1 Million in B-Round; Money to be
Used to Fund Expansion
January 18, 2005
COLUMBIA, SC, January 18, 2005 —
Unitrends Software Corporation (www.unitrends.com), a pioneer in the
development of enterprise-wide data protection products and services, today
announced it has closed an $8.1 million "B" round of funding. The capital will
be used to enhance the company's leading position in helping small- and
mid-sized businesses (SMBs) secure, protect and recover the rapidly-growing
amount of critical corporate data that keeps them in business.

Unitrends will expand its sales and marketing organizations throughout North
America, and will continue to invest in the development of integrated software
and hardware business recovery solutions, including its complete line of Data
Protection Unit (DPU™) products and services.

The Aurora Funds, based in Durham, North Carolina, served as the lead investor,
joined by Harbert Venture Partners and ECentury Capital. The Trelys Funds,
based in Columbia, South Carolina, was the lead investor in Unitrends' "A"
round of funding and also led the bridge financings to this "B" round. All four
investment firms will hold positions on Unitrends' Board of Directors.

"Unitrends impresses us with its focus on delivering solid value and benefits
to a clearly defined target market, which is demonstrated by the Company's
strong revenue growth in 2004," said Rich Brown, General Partner at The Aurora
Funds. "In our study of the industry, we found that the medium and small
business market is underserved; most storage vendors market to these customers
solely by selling products with reduced functionality. Unitrends breaks that
trend by delivering full-featured solutions that help its customers solve their
challenges today, and which are designed to scale with them as their needs
grow."

Unitrends markets and sells business recovery solutions that protect SMB data
and operations at the file, system, site and business level. The solutions are
based on Unitrends' DPU integrated storage appliances which incorporate its
data protection software suite, including BarӪeMetal Plus™. Unitrends has
demonstrated its value to SMBs by providing business recovery solutions that
ensure system and data availability, and incorporate full-powered,
simple-to-operate performance at a fraction of the cost of products from
competing vendors. The solutions save users significant time and money by
allowing restoration of a crashed system (including passwords and permissions)
in as little as 30 minutes. Unitrends sells through a base of more than 200
resellers nationwide, including Northrop Grumman, MPC Computers and Software
Plus. Its list of clients includes companies such as GE Health, Siemens, Furman
University, Motorola Employees Credit Union, the U.S. Department of Agriculture
and FileNet Inc.

"Our research shows that the needs of SMBs in terms of data recovery are no
less than those of their larger brethren except that they generally do not have
specialized IT personnel," said Arun Taneja, principal analyst at the Taneja
Group, an analyst and consulting group focused on storage and storage-centric
server technologies. "As a result, they prefer a well-integrated, complete
solution from a company that understands their needs microscopically. Unitrends
both understands and meets these unique needs. I believe SMBs will drive
storage growth for the foreseeable future and this positions Unitrends squarely
in the fast lane."

"Our ability to raise this capital serves as an industry confirmation of both
Unitrends' product line and our go-to-market strategy," said Jacques McCormack,
president of Unitrends. "This new investment will enable us to accelerate our
growth, and further penetrate the markets that are key to our continued
success."

About Unitrends Software Corp.
Founded in 1989, Unitrends Software Corp. is a pioneer in the protection of
corporate-critical data and a leader in business recovery solutions. Unitrends
provides powerful backup, recovery and complete data-protection products and
services that are cross-platform, scalable and simple to use. More information
on Unitrends is available from the company's website, www.unitrends.com, or by
calling 803.454.0300.

About The Aurora Funds
Founded in 1994, The Aurora Funds is a venture capital firm that provides
capital and strategic help to entrepreneurs with early stage life sciences and
information technology companies in the Southeastern and mid-Atlantic United
States. The firm has more than $155 million of total capital under management
and is currently investing out of its fourth fund of $85 million. The firm has
the capacity to invest between $4 million and $7 million throughout the life
cycle of an investment. More information is available at www.aurorafunds.com.

About ECentury Capital
ECentury Capital is a $90 million balanced-stage venture capital fund that
makes investments throughout the eastern United States in distinctive
technology companies that solve real business problems. The company gives its
portfolio companies the power to accelerate their businesses into global
markets by leveraging relationships with its active, institutional partners:
Hitachi, Mitsubishi, Allied Capital and Rothschild. More information is
available at www.ecenturycapital.com.

About Harbert Venture Partners
Harbert Venture Partners, with offices in Richmond, VA and Birmingham, AL,
provides growth capital to early stage technology and healthcare companies in
the Mid-Atlantic and Southeastern U.S. Our team combines substantial
investment, advisory and operating experience with capital to assist
entrepreneurs in successfully executing their growth plans. Harbert Venture
Partners is an affiliate of Harbert Management Corp., a privately owned
investment manager focusing on alternative asset classes. Harbert has
twenty-two funds under management, representing over $5.0 billion in assets
under management. More information is available at www.harbert.net.

About The Trelys Funds
The Trelys Funds is South Carolina's largest and most active early-stage
venture capital firm. Providing both risk capital and experienced counsel,
Trelys invests in emerging-growth companies in South Carolina and the
surrounding region. The founding investors of Trelys include BlueCross
BlueShield of South Carolina, BB&T Corporation, Carolina First Bank, First
Citizens Bank, the Clemson University Foundation, and the Medical University of
South Carolina Foundation. For more information, see www.trelys.com.

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