Tsunami Research Extends Series A Financing to $5.5 Million

Company will use funds to expand sales force, advance product development

St. Louis (December 1, 2004) – Tsunami Research, the software company pioneering hive computing, today announced a $2.7 million extension to its Series A financing. Bush O’Donnell & Co. joined new and existing angel investors in the financing, bringing the Series A total to $5.5 million.

"Hive computing has the potential to drive the next generation of enterprise computing," says Jim O'Donnell, CEO of Bush O'Donnell & Co., a St. Louis-based investment firm. "Tsunami’s leadership team has a proven track record in building successful companies and a wealth of technical experience. We’re confident that they have a competitive edge in the development and commercialization of this exciting technology."

Hive computing addresses three key challenges faced by the IT Industry today: spiraling costs, escalating complexity and the challenge to meet ever-changing business requirements. Tsunami’s flagship product—HiveCreator—is software that offers a solution to these challenges by enabling networks of dedicated commodity-grade computers to host service-oriented and transactional applications in a highly dependable, manageable and affordable manner.

In addition to the Series A extension, Tsunami Research recently secured a grant from the National Science Foundation, in recognition of the innovative nature of hive computing technology.

"We’re very excited about the backing we’ve received from Bush O’Donnell and the NSF," says Kevin Haar, CEO of Tsunami Research. "Together, they affirm the strength of our business and technology. The capital they’ve provided will help Tsunami extend its sales and marketing initiatives, expand its product portfolio, and reach the next stage of development."

Today’s announcement comes on the heels of Haar’s appointment as CEO of Tsunami Research. Haar is well known in the technology industry for his key role in building Rational Software from its roots as an obscure start-up into an industry leader with 98 of the Fortune 100 among its customers. Haar spent 17 years at Rational, most recently serving as senior vice president of worldwide field operations—holding responsibility for global sales, support, and services—through the company’s $2.1 billion acquisition by IBM.

About Tsunami Research

Tsunami Research is the software company pioneering hive computing, an emerging approach to enterprise application development, deployment and maintenance. Hive computing software enables customers to achieve dramatic reductions in the cost, time, and complexity associated with service-oriented and transactional applications. Tsunami is led by CEO Kevin Haar and was founded in 2001 by key members of PaylinX, a leading real-time enterprise payment processing solution for handling credit card and other transactions. PaylinX was sold to CyberSource for $130 million in 2000. Tsunami is based in St. Louis, Mo.

For more information, please visit Tsunami Research online at www.tsunamiresearch.com, or call 314-336-5080.

Tsunami Research and HiveCreator are trademarks of Tsunami Research, Inc. All other trademarks are held by their respective owners.

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