Tsunami Research Completes $2.3 Million Series A Private Placement

Distinguished angel investor group backs company drive to extend leadership position.

St. Louis, MO – January 12, 2004 – Tsunami Research, Inc., the software company pioneering Hive Computing, today announced the closing of a $2.3 million Series A financing round.

In the oversubscribed round, existing investors have been joined by a group of prominent angel investors including technology industry veteran Kevin Haar, former senior vice president of field operations at Rational Software.

“Today’s Global 2000 organization faces the twin challenges of deploying new, service-oriented applications under the cost pressures imposed by our current economic environment,” said Mr. Haar. “Tsunami’s Hive Computing products hold great promise, allowing companies to achieve these two goals while simultaneously reducing the complexity of their technology infrastructures.”

Investors from the company’s seed financing, closed in 2002, were well represented in the Series A round. “Tsunami’s game-changing technology and its strong potential attracted both new and existing investors to this round of financing,” said Mark Dunkel, managing partner at venture capital firm Southeastern Technology Fund, and an individual investor in both financing rounds. “I’m looking forward to continuing to work with the company’s management team to advance the Hive Computing vision.”

Tsunami Research launched its flagship product, HiveCreator, in February 2003. HiveCreator is the industry’s first Hive Computing solution. Using HiveCreator, Tsunami Research customers can enable large numbers of dedicated commodity computers to collectively form a new type of mission critical computing environment called a hive. The self-organizing, self-healing, and self-maintaining characteristics of a hive allow these customers to host their transactional and service-oriented applications in a highly reliable and extremely affordable manner.

“We are extremely pleased to receive such strong commitment from our new and existing investors,” said Bob Lozano, CEO of Tsunami Research. “The endorsement made by this impressive group provides compelling validation of the promise of Hive Computing and the progress Tsunami has made bringing this exciting technology to the marketplace.”

The company plans to use the proceeds of the financing round to further establish its leadership position in the emerging Hive Computing marketplace through the expansion of product development, business development, and marketing initiatives.

About Tsunami Research

Tsunami Research is the software company pioneering Hive Computing. Hive computing enables customers to achieve dramatic reductions in the cost, time and complexity associated with developing, deploying and maintaining transactional and service-oriented applications. HiveCreator, the first Hive Computing solution, is a software product which enables large numbers of dedicated commodity computers to collectively form a computing environment called a hive. A hive, inspired by biologic systems, is self-organizing, self-healing and self-maintaining, and is designed to host applications in a highly reliable and extremely affordable manner. The Tsunami Research core team, led by CEO Bob Lozano, previously founded PaylinX and built a real time enterprise payment processing application for handling credit card and other transactions. PaylinX was acquired by CyberSource in 2000 in a deal valued at more than $130M.

Tsunami Research and HiveCreator are trademarks of Tsunami Research, Inc. All other trademarks are held by their respective owners. The aforementioned securities have not been registered under the Securities Act of 1933 and may not be subsequently offered or sold by the investors absent registration or an applicable exemption from the registration requirements.

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