Mimosa Raises $17 Million in Mezzanine Financing Led by Focus Ventures

New Funds Will Enable Mimosa to Extend Global Reach in
Multi-Billion Dollar Market for Next-Generation Content Archiving
SANTA CLARA, Calif.--(Business Wire)--
Mimosa Systems, a leader in live content archiving solutions,
today announced that it has closed $17 million in mezzanine financing.
Focus Ventures led the funding round, joined by current investors
August Capital, Clearstone Venture Partners, JAFCO Ventures and
Mayfield Fund. Mimosa will use the investment to expand the Mimosa
NearPoint(TM) footprint globally and to continue to capitalize on the
multi-billion dollar market opportunity for next-generation content
archiving.

The Mimosa NearPoint content archiving solution is delivering real
value for hundreds of customers and partners across North America,
Europe, Japan, and Asia Pacific. NearPoint addresses critical customer
requirements for email and file system archiving, eDiscovery,
regulatory compliance, content monitoring, disaster recovery, data
protection and storage management in a unified, easy-to- use solution.

According to IDC, the worldwide email archiving applications
market grew 48 percent in 2007 over the last year driven by the need
for email archiving to satisfy compliance, legal discovery, and
storage optimization requirements. Archiving applications are a
critical foundation of the legal discovery infrastructure platform
market(1), which IDC expects to approach more than $22 billion in
2011(2).

"The FRCP changes for electronic discovery compelled corporations
to adopt and consistently enforce its records retention practice as a
key component of their preparations for the Rule 26(f) conference
deadlines," said Vivian Tero, Program Manager, Compliance
Infrastructure at IDC. "More corporations are deploying content
archiving applications like Mimosa NearPoint to automate the retention
of critical content such as emails and file data, as well as to
support their legal hold obligations."

Mimosa Sets the Standard for Next-Generation Content Archiving

Since its inception, Mimosa Systems has demonstrated technology
excellence and product superiority with adaptive content archiving
solutions that address critical information management requirements.
Mimosa has established a leadership position through continuous
innovation to deliver the industry's most comprehensive archive
platform, along with best-in-class applications for eDiscovery,
retention management, regulatory compliance, content monitoring, data
protection, disaster recovery and storage optimization in a single
solution. Mimosa NearPoint gives enterprises a cost-effective and
robust offering to perform intuitive searches, implement retention
policies and provide data protection and business continuity to
minimize risk across email, files and back-up tapes.

"Mimosa has emerged as an industry leader in the multi-billion
dollar content archiving market, which is growing exponentially driven
by runaway email and information growth and stringent eDiscovery and
regulatory compliance mandates that face corporations across the
board," said Steve Bird, general partner of Focus Ventures. "Mimosa
has the strategic ingredients for success including a white-hot market
opportunity, a next-generation archiving platform that leap-frogs
traditional offerings, and the ability to execute on a global scale.
With significant customer momentum and an experienced management team,
Mimosa is well positioned to lead the content archiving market. We
look forward to leveraging our global network of resources to propel
Mimosa's next stage of growth."

"Having a top-tier VC firm like Focus Ventures leading our
mezzanine round is a powerful endorsement that Mimosa has the right
mix of superior technology, top management expertise, strong global
customer success, and a sustainable vision for the future," said T.M.
Ravi, president and CEO of Mimosa. "The support of Focus Ventures and
the continued commitment of our existing investors will be
instrumental as we enter the next phase of rapid growth and continued
product innovation."

About Mimosa NearPoint

Mimosa NearPoint addresses critical customer requirements around
content archiving, eDiscovery, regulatory compliance, business
continuity, and storage optimization in a unified solution. Mimosa
NearPoint provides legal search workflow, immediate mailbox and
message recovery, disaster recovery, email, instant message and file
archiving, and self-service search and access in one solution. By
leveraging cost-effective storage and advanced classification rules,
NearPoint also optimizes content storage and reduces overall
infrastructure costs.

About Mimosa

Mimosa Systems, Inc. delivers next-generation content archiving
solutions for information immediacy, discovery, and continuity. Mimosa
NearPoint is the industry's most comprehensive unstructured
information management software solution for email, files, and instant
messages, enabling archiving, eDiscovery, storage management and
recovery in a unified solution. Mimosa is a Microsoft Gold Certified
Partner, recognized for its competencies in networking infrastructure
solutions, ISV/software solutions, and advanced infrastructure
solutions. Mimosa is a privately held company whose investors include
August Capital, Clearstone Venture Partners, Focus Ventures, JAFCO
Ventures and Mayfield Fund. Mimosa was founded in 2003 and is based in
Santa Clara, California, with offices in Germany, the United Kingdom,
Japan, China, Australia and India. For more information, see
www.MimosaSystems.com.

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Mimosa Systems
3200 Coronado Drive, Santa Clara, California 95054
408.970.9070
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Mimosa, Mimosa Systems, Mimosa NearPoint are trademarks of Mimosa
Systems. All other product and company names herein are or may be
trademarks of their respective owners.

(1) IDC, Worldwide Email Archiving Applications 2008-2012, Doc
#212017, May 2008

(2) IDC, Worldwide Legal Discovery and Litigation Support
Infrastructure 2007-2011 Forecast: Legal Matter and Compliance Records
Repositories Are the Early Use Cases of the Active Archiving
Architecture, Doc #207155, June 2007. (Note: Values include hardware,
software, services investments along the EDRM model, spans the
Presentation phase).

Ventana Public Relations
Sabrina Sanchez, 925-875-1968
sabrina.sanchez@ventanapr.com

Copyright Business Wire 2008