Radiance Technologies Unveils TrueDelivery™ Software, Announces First Strategic Partner, Secures $13.4 Million in Series B Financing New Software System Enables Enterprises to Guarantee Delivery of Digital Packages Los Altos, Calif., March 25, 2002 - Radiance Technologies today unveiled its first product, the TrueDelivery System, made public a strategic partnership with TiVo, Inc. (NASDAQ: TIVO), and announced the closing of a $13.4 million Series B financing round, jointly led by Vanguard Ventures and Sutter Hill Ventures. The company also announced its management team and outlined its mission to enable enterprises to use their existing networks for the guaranteed delivery of "digital packages." "Our software will do for digital file distribution what FedEx did for package delivery," said Ashfaq (Ash) Munshi, CEO, Radiance Technologies, Inc. "Through a set of technologies we call 'digital logistics,' Radiance brings schedule guarantee, quality-of-service, and unprecedented optimization to the delivery of digital packages. This dramatically expands what enterprises can do with their existing network infrastructure." Digital packages are defined as large digital assets, comprised of one or more files of any format (e.g., PowerPoint, digital video, software applications, CAD files), grouped together for a business purpose, and wrapped as an item for secure delivery. Currently, large digital files are typically delivered in one of two ways: physically, on tape or disk, or digitally, via the Internet's best-efforts approach. Optimized for the routing of small packets of information, such best efforts approaches are prone to traffic jams when confronted with the large-file delivery challenge. As a result, the market for a new class of managed delivery solutions is projected to grow rapidly in the next few years. "Enterprises face a growing problem when it comes to managing the movement of large files across their extended network to employees, partners, and customers," said Lawrence Orans, senior analyst, networking, at Gartner Research. "In response, the market for enterprise Content Delivery Network (eCDN) solutions is evolving rapidly from simple caching approaches to include the management of all aspects of distributing and accessing rich media as well as large static files." Guaranteed Delivery of Digital Packages to Employees, Partners, and Customers The Radiance solution has broad applicability, enabling the managed delivery of any kind of data or content to employees, partners, and customers. Radiance is working with more than a dozen enterprises piloting the TrueDelivery system. "Enterprises are in search of more efficient ways to distribute large, business-critical digital files to employees and partners," said Richard Thomas, Media Development and e-Learning Manager, Mercedes-Benz USA. "The Radiance approach of scheduled, guaranteed delivery offers clear advantages over physical delivery on CD-ROM." Other pilot customers include: • An aerospace company sending product documentation to customers faster and at lower cost than physical delivery on paper and disk • A software company delivering builds of its application to remote development teams with less manual intervention and network congestion than via FTP • A media and entertainment company selling digital audio products direct to consumers at higher margin greater cross-sell than through conventional retail Strategic Partnership In addition, Radiance restated its commitment to a strategic partnership with TiVo Inc. first announced at the Consumer Electronics show in January 2002. Under the terms of the partnership, the companies are working together to integrate the Radiance TrueDelivery client into the broadband-ready TiVo Series2 DVR as a foundation for managed delivery services. "Radiance represents a breakthrough in the economics and reliability of digital delivery," says TiVo CEO Mike Ramsay. "By working together to make Internet Video-on-Demand a reality, we will dramatically expand the viewing choices for TiVo customers." Patent-Pending "Digital Logistics" Technology Radiance has pioneered an approach it calls managed delivery, in which every delivery is treated as a transaction, subject to a set of business rules. This approach combines guaranteed delivery and quality-of-service with centralized control and extreme scalability. Making this possible is set of patent-pending digital logistics technologies that optimize delivery management along three dimensions: • Time: Intelligent scheduling leverages the differing urgencies of competing deliveries to smooth the peaks-and-valleys of bandwidth utilization. • Storage: Content-Smart Selective Caching minimizes storage costs by caching content only where necessary, rather than all along an arbitrary "edge." • Bandwidth: Adaptive Bandwidth Management allows the system to respond in real-time to unexpected traffic congestion and to get better over time at anticipating usage patterns throughout the network. TrueDelivery - A Modular, End-to-End Software System The Radiance TrueDelivery System consists of four software components, flexibly deployed as an overlay on the network: • The Distribution Center enables centralized content management and centralized delivery management. The Distribution Center is where digital packages are created and where the delivery network is administered, monitored, and managed. • Delivery Servers are semi-autonomous delivery agents that operate according to business rules set at the Distribution Center. The Delivery Servers optimize utilization of network resources and execute deliveries, with schedule guarantee. • Destination Servers, act as intelligent, remotely administered caches for accelerated, browser-based access to content in server-to-server deployments. • Clients act as desktop "in-boxes" for receiving and managing digital packages. With an intuitive interface and a small footprint, the TrueDelivery Client is designed for ease of use and ease of administration. The TrueDelivery System is available immediately on Solaris and Windows. Pricing for the end-to-end system begins at $100,000 and varies by configuration. Investors and Management Team The Series B financing round follows a $3.6 million Series A, bringing the total financing received by Radiance to-date to $17 million. Daniel Eilers of Vanguard Ventures joins Ash Munshi, James N. White of Sutter Hill, Nicholas Moore, former chairman of Price Waterhouse Coopers, and Audrey MacLean, noted entrepreneur and angel investor, on the board. Radiance also announced its management team, which consists of experienced executives from Applied Materials, Oracle, Netscape, PictureTel, and SGI and includes: Ashfaq Munshi CEO, Chairman of the Board, Founder Tom Spalding Chief Financial Officer, Co-Founder Amotz Maimon Senior VP, Engineering and Product John McCrea Senior VP, Marketing Chris Tucher Senior VP, Business Development ### About Radiance Radiance Technologies enables the managed delivery of digital packages. The company's first product, the TrueDelivery™ System, brings patent-pending digital logistics technology to digital delivery over IP networks. Radiance is based in Los Altos, California, privately held, and financed by Vanguard Ventures, Sutter Hill Ventures and prominent Silicon Valley individual investors. Additional information can be found at http://www.radiance.com. NOTE: Radiance and TrueDelivery are registered trademarks of Radiance Technologies Incorporated in the United States and other jurisdictions. All other company or product names mentioned may be trademarks or registered trademarks of their respective companies. ###