Newsroom: e-Newsletter

Spring 2006 – News from CHEN PR

• A former whaling capital hosts an annual gathering of CEOs, VCs and technologists
• Renowned venture capitalist John Burton shares his thoughts on the investment climate

It looks like IT spending is on the rise. Earlier this year an annual Accenture survey of 300 executives at U.S.-based companies with average revenues of $8 billion revealed that IT investments will grow over the next three years, with an average 5.5% increase during the next year. The survey cited integration efforts, regulatory compliance and security requirements as key factors driving the increase.

CHEN PR Sponsors Prestigious Nantucket Conference

CHEN PR is the premier PR sponsor of the elite 2006 Nantucket Conference, May 4-6. The seventh annual Nantucket Conference convenes an invitation-only group of New England's top technology entrepreneurs, executives and investors to exchange ideas and network.

Our clients tell us one thing that separates CHEN PR is our insight into larger market dynamics. The Nantucket Conference fosters a sense of community that makes it possible to have meaningful discussions about where our industry is heading.

Instead of using speeches and slide shows, the Nantucket Conference engages attendees in a dialogue and debate with presenters. Because proceedings are off the record, participants can share insights and experiences in a no-holds-barred environment that doesn't exist at other conferences.

Shayne Gilbert, co-chair of the program, says that the first six editions of the Nantucket Conference have helped forge stronger connections between the talented people building technology companies in New England, the people funding those companies, and the people making technology decisions at larger, more established organizations. The 2006 event will continue that tradition.

For more information on the Nantucket Conference...

Three Questions
With John Burton, Managing General Partner, Updata Partners

1. Which sectors will be the most active for VC activity this year?
We are encouraged by the performance of our portfolio companies and see ongoing opportunities in IT security as well as applications for the Small and Medium-Sized Businesses (SMB) market. Trends we continue to explore include the mobile Internet and the proliferation of compelling mobile devices, penetration of broadband and consumer access and the lowered cost for new firms to enter high growth markets using second generation Web technologies for market access and customer capture.

2. What should a growing company look for in a partnership with a venture capital firm?
The most successful partnerships are with VC teams who have "done it before" -- they have a proven operational track record in their portfolio company's industry, understand what it takes to achieve financial milestones and have long-standing relationships with key vendors, channel partners, marquis clients and potential acquirers. Companies with unique technological solutions that already have some market traction can get the most benefit from a VC team that can help them innovate in the areas of strategy, sales and marketing, as well as positioning and timing of exits for maximum return.

3. What is driving the significant M&A activity in the information technology (IT) industry right now?
In IT, strategic M&A activity is being driven by: competitive pressures to develop end-to-end solutions and vertical expertise; customer demand for integrated compliance and security features; and, disruptive technological models such as mobile Internet and software-as-a-service. Now and into the foreseeable future, competition for analyst coverage and the costs related to regulatory compliance make an IPO less attractive as an exit. We expect to see more consolidation within sectors as well as across the traditional technological boundaries of software, hardware, services and connectivity resulting in strong valuations in 2006.

Coverage Highlights

International Herald Tribune - In Open Source, an Unexpected Trap
BusinessWeek - Blue Coat to Buy Permeo Technologies
Red Herring - Blue Coat Buys Permeo: $60.8M
Boston Globe - Less Paperwork Generates Big Profits for StreamServe
Silicon Valley/San Jose Business Journal - Blue Coat Systems to Buy Permeo Technologies For $60.8M
CFO Magazine - Turnover is Expensive. Lowering it Doesn't Have to Be
eWEEK - Blue Coat to Acquire Security Company Permeo for $60M
CNET - Oracle Database Worm Mutates
The Lowell Sun - StreamServe's Chris Stone has Advocated 'Open-Source' Movement Since the 1980s
Boston Business Journal - Symantec Continues Mass. Buying Spree, Buys Relicore
Boston Business Journal - Contracting for Research Helps Speed Company Growth
Mass High Tech - Phase Forward Software to be Used by U.K. Agency
Bio-IT World - Bio-IT Briefs
Pharma Marketletter - UK's MHRA Implements Phase Forward Technology
InfoWorld via IDG News - Palamida Teams Up with CollabNet, Lists IP Ingredients
CNET - Open Source: The Newest Competitive Tool
ZDNet - My What Big IP Teeth Open Source Has
Network World - Best Practices for the New IT
CNET - RSA Confab: Boom Times for Security
SmartMoney.com - One Day Wonder - Cashing In On Chips
CRN - SSA Global Allies with StreamServe on Document Presentation
Network World - Blue Coat Buys SSL VPN Company for $60.8 Million
InternetNews.com - Palamida Shows Secret Sauce
SD Times - Podify My Software Now
FCW - AppSecInc Secures Databases
Database Journal - Database Security Auditing and Intrusion in One Package
Network World - Application Security Help
eWEEK - Oracle 'Worm' Exploit Gets Ominous Tweak
Network World - Database Security Software to be Updated
Computerworld - Endpoint Security without the Pain
Workforce Performance Solutions - Uncompromised Performance: Achieving Workforce Profitability
TMCNet - Mobile Phone Bills: A New Marketing and Communications Tool
SearchOpenSource.com - Free Advice (As in Beer): Know Your Compliance/OSLD Vendors
R&D Directions - Paper Cuts
SQL Server Magazine - New Products, January 2006
Network World - Viola Offers VoIP Management, Down to the Desktop
Bio-IT World - Bio-IT World Magazine Announces Best of Show Awards Finalists
Bio-IT World - Bio-IT World 50
Mass High Tech - PharmaLinkFHI Renews License Agreement with Phase Forward
Mass High Tech - Viola Orchestrates VoIP Test Market Leader Role
Applied Clinical Trials EDC Supplement - Integrating EHR with EDC: When Two Worlds Collide

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About CHEN PR

CHEN PR is celebrating its 10th year as one of the top independent PR firms in the U.S. The agency's talented teams create market leaders through results-driven PR programs that help clients achieve their most ambitious business objectives. CHEN PR works in a wide range of technology areas including enterprise and open source software, biopharma, networking and communications, storage, security/compliance and semiconductors. CHEN PR offers clients three distinct advantages:

• Partner-level client counsel
• Low client-to-employee ratio
• Balanced, experienced PR teams

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