ActiveGrid Closes $10 Million in Series B Financing

 FOR IMMEDIATE RELEASE

Press Contact:
Robin Bulanti
Kulesa Public Relations for ActiveGrid
(650) 340-1986
robin@kulesapr.com


ACTIVEGRID CLOSES $10 MILLION IN SERIES B FINANCING

Commercial Open Source Company Drives LAMP into the Enterprise and Attracts
Financing
from Worldview Technology Partners

San Francisco, CA, July 19, 2005 - ActiveGrid, Inc., a commercial open source
company, today announced that it has closed a $10 million Series B round in
financing.  The round, which brings the company's total financing to over $13
million, was led by Worldview Technology Partners and included re-commitments
from previous investors, Hummer Winblad Venture Partners and Allegis Capital.
ActiveGrid plans to use the funds to accelerate and extend the development of
its Enterprise LAMP product offering to leverage the growing popularity of
the LAMP (Linux, Apache, MySQL, PHP/Python/Perl) software stack.  Irwin
Gross, general partner of Worldview Technology Partners, will join the
company's board of directors. 

"In just a few months, ActiveGrid has generated significant market interest
around developing and deploying applications across the LAMP platform, and we
have been excited to see how quickly it has begun to resonate among corporate
developers," said Gross.  "The company has responded to this opportunity by
assembling a world-class team of technology experts and establishing
strategic LAMP partnerships to advance the open source stack into the
enterprise. We feel the timing is perfect for this investment and for
ActiveGrid in the marketplace."

ActiveGrid simplifies the delivery of new applications and services by
enabling corporate developers to rapidly develop and flexibly deploy rich
web-enabled applications on top of the proven open source LAMP software
stack.  ActiveGrid, through its collaboration with the open source community
and industry-leading technology companies, has fast become a core component
in providing a more agile, less expensive alternative to J2EE and .NET. 

"As the use of open-source technology accelerates, more and more
organizations are looking for ways to take Linux-based computing to the next
level in the enterprise, which presents unprecedented opportunity for a
company like ActiveGrid," said Mitchell Kertzman, partner with Hummer
Winblad. "ActiveGrid is clearly at the industry forefront, helping to advance
open source into an exciting new era of enterprise computing."

Peter Yared, ActiveGrid's CEO and founder, commented, "We welcome Irwin Gross
and Worldview to the ActiveGrid team.  Worldview's global reach and
international business development practice, coupled with Irwin's extensive
intellectual property expertise, will contribute significantly to
ActiveGrid's open source strategy and overall business vision.  We look
forward to working closely with Worldview and our previous investors to
advance open source and enterprise LAMP, and move into our next phase of
corporate growth." 

About ActiveGrid
ActiveGrid, a commercial open source company, has created the ActiveGrid LAMP
Application Server, a next-generation enterprise development and deployment
platform that brings the benefits of the open source LAMP stack to the
enterprise.  ActiveGrid's products simplify new application and service
delivery by enabling corporate developers to rapidly build and flexibly
deploy applications and services across horizontally-scaled commodity
computers.  The ActiveGrid solution gives organizations the ability to
integrate and extend existing backend systems to create rich web-enabled
applications and reap the economic benefits of open source commodity
computing.  Please see http://www.activegrid.com for more information.

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