newScale Secures $11 Million Investment

newScale Poised to Extend Service Catalog Market Leadership

FOSTER CITY, Calif., July 2, 2007 – newScale^®, Inc., the market leader in IT Service Catalog solutions, today announced that it has closed an $11 million round of additional funding to capitalize on the dramatic growth in the Service Catalog market. New investor Wasatch Cross Creek Capital joins existing investors Chess Ventures, Crosslink Capital, Menlo Ventures, Montagu Newhall Associates, Inc., New Enterprise Associates (NEA) and Parker Price in this oversubscribed round.

The newScale Service Catalog software suite enables the Global 2000 to transform their IT organizations to become more service-centric – resulting in higher satisfaction with IT services, improved visibility into IT consumption, greater operational effectiveness, and more control over IT spend. newScale has enjoyed record growth in new customer acquisition and revenue growth over each of the past four years.

"With the recent launch of ITIL version 3 – affirming the position of the Service Catalog at the cornerstone of IT service management – there is even greater momentum in the market than ever before. newScale’s continued dominance in customer acquisition and user adoption puts us at the forefront of the next great software category of Front Office applications for IT organizations," said Scott Hammond, president and CEO of newScale. "This up-round of funding allows newScale to further accelerate our growth in this rapidly-expanding market by increasing software development and sales capacity."

With more than 1.4 million users in production worldwide, newScale is the proven and safe choice for Global 2000 organizations seeking to transform IT into a service-centric model. newScale RequestCenter^® and newScale AlignmentCenter^™ are the only integrated Service Catalog solutions available for the entire service lifecycle in ITIL version 3 (v3). newScale solutions encompass ITIL processes that span the full range of service strategy and design, service operation and transition, and continual service improvement. Information on Service Catalog best practices and the impact of ITIL v3 is available on the newScale-sponsored open source community at www.ServiceCatalogs.com.

"The Service Catalog market has all the indicators of a substantial new market opportunity. Our due diligence showed that newScale customers are realizing significant ROI from their Service Catalog investments, and a considerable percentage of Fortune 500 companies have budgeted for Service Catalog projects this next year," said Greg Bohlen, managing director, Wasatch Cross Creek Capital. "With a rapidly expanding installed base of top tier customers – newScale is clearly the leader that other vendors are trying to catch in this market."

About Wasatch Cross Creek Capital^™
Wasatch Cross Creek Capital, an affiliate of Wasatch Advisors, is a venture capital fund focused on late-stage private equity investments in what it believes are the best-of-breed public companies of the future. Wasatch Advisors’ experience in evaluating small public companies gives it unique insight into evaluating late-stage private companies. Wasatch Cross Creek Capital leverages the knowledge and skill of the broader Wasatch Advisors research team in its investment decisions.

About Wasatch Advisors^®
Founded in 1975, Salt Lake City based Wasatch Advisors is an employee-owned investment adviser with approximately $9 billion under management. Wasatch Advisors is the investment adviser to Wasatch Funds^®, a family of no-load mutual funds, as well as separately managed institutional and individual portfolios. Wasatch Advisors pursues a disciplined approach to investing, focused on bottom-up, fundamental analysis vetted through a uniquely collaborative Multiple Eyes^™ process to leverage the knowledge and skill of the entire Wasatch Advisors research team.

newScale
newScale, Inc. is the leader in IT Service Catalog and Service Portfolio Management software solutions for Global 2000 companies, with more than 1.4 million users worldwide. newScale solutions enable IT organizations and managed service providers to catalog their portfolio of services, govern demand for services, manage delivery of services, and optimize service quality. newScale customers – including twenty percent of the Fortune 50 – benefit from increased operational efficiency, reduced costs, improved service levels, and greater IT/business alignment. For more information, please visit the newScale Web site at www.newscale.com or call 650-403-7700.

###

Editor’s Note: All newScale brand and product names are trademarks or registered trademarks of newScale Inc. in the U.S. and other countries. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.

Primary Media Contact
Mary Lindmeier
newScale, Inc.
+1 (650) 403.7725
press@newscale.com



CONTACT US    |    © PPVC 2001. All rights reserved.