APAX PARTNERS: Apax Partners and 3i power Argo In Interactive expansion.

M2 PRESSWIRE-10 December 1999-APAX PARTNERS: Apax Partners and 3i power Argo Interactive expansion (C)1994-99 M2 COMMUNICATIONS LTD

RDATE:081299

Leading international equity providers Apax Partners & Co. Ventures Ltd and 3i announce an investment of GBP11 million in Argo Interactive Group plc, an emerging leader in wireless Internet software. Apax Partners has taken the lead in this funding round while 3i has added to its initial March 1998 stake in the company. Argo Interactive's core product, Actigate, allows existing web pages to be customised for and served to alternative Internet access devices such as Wireless Application Protocol ("WAP") phones, PDAs, and other thin clients.

Current Internet content is developed in HTML for viewing through PC-based browsers with defined screen sizes. Future access to the Internet will be driven by non-PC devices. Therefore, there is a need to re-author content in a cost-effective manner for these varied screen formats using multiple protocols. Argo Interactive provides the means to accomplish this.

This latest funding round will enable Argo Interactive to substantially expand its R&D and Marketing resources, and establish operational bases in both the USA and Asia.

Argo Interactive CEO Andrew Foyle commented: "It's a fantastic boost for us to receive financial endorsements from two of the most influential venture capital investors in the European marketplace. European technology leads the world in the emerging wireless Internet market. With the support of Apax Partners and 3i, we will be able to meet the demand for our product from a rapidly expanding customer base."

John McMonigall, a Director of Apax Partners, noted: "Argo Interactive has developed a benchmark technology. We are delighted to assist them in their expansion and enable others to benefit from the unique functionality and architecture of their software. Argo Interactive's software for wireless applications meets the needs of the changing Internet environment. We look forward to their international growth through further finance."

"Our increased funding of Argo Interactive is a demonstration of our commitment to their technology and growth potential," announced Matthew Mead, Investment Executive at 3i. "We look forward to their further development as new forms of Internet access proliferate. Argo Interactive is a pioneer in this field and we are delighted to help them expand."

Deloitte & Touche Corporate Finance acted as lead adviser to Argo Interactive in this transaction.

NOTES TO EDITORS

Argo Interactive Group plc

Argo Interactive, founded in 1996, is a high-tech UK start up creating unique server middleware to empower the predicted explosion of wireless Internet services. Argo's key product, ActiGate, intelligently converts website and other data sources for display on mobile phones and other wireless Internet appliances. With an international client base rapidly expanding, Argo - led by 28-year-old entrepreneur Andrew Foyle - is at the forefront of this dynamic and fast-moving mobile Internet arena. Argo Interactive is a member of the Phone.com Alliance Program and an Associate Member of the WAP Forum.

Apax Partners & Co. Ventures Ltd

Apax Partners, one of the leading international private equity investment groups, pursues a balanced equity portfolio strategy investing in companies at all stages of development from start-up to buy-out. Apax Partners focuses primarily on seven industry sectors - Information Technology, Internet, Telecommunications, Retail & Consumer Products, Healthcare, Media and Financial Services.

Apax Partners has a team of over 100 private equity investment professionals in 12 ventures offices across Europe, the USA (operating as Patricof & Co.), Japan (operating as Apax-Globis Partners) and Israel. Seventy-five of these professionals are based in Europe. Founded independently in the USA in 1969 and in Europe in 1972, the Firm came together in 1977. Apax Partners now manages over (Euro) C5.5 billion on behalf of leading institutional investors around the world.

Recent transactions include Autonomy (international), beenz.com (USA, Europe), Future Network (international, CCMX (France), StreamServe (international), Utimaco (Germany, USA), NetDoktor (Europe), iMediation (France), CommTouch Software (Israel), Dialog Semiconductor (Germany), Jazztel (Spain), Riversoft (USA, Europe), The eXchange Holdings (UK), i-Scraper (Israel, USA and Europe), QXL.com (UK), and Baltimore Technology (international).

3i

3i is Europe's leading venture capital company. At 30 September 1999, 3i's technology portfolio was valued at GBP1.1 billion and comprised over 600 businesses, representing 24.2% of 3i's total portfolio.

The Group invests in ambitious, growing businesses in all sectors. It provides funding for growth, recovery, management buy-outs and management buy-ins. Almost 1,000 companies from 3i's portfolio have achieved a stock market listing.

In the UK 3i (including its co-investment funds) backed over half (54%) of all high tech companies that received funding in 1998, and provided almost one third of total high tech funding (Source: BVCA statistics for 1998).

Overall, 3i has invested almost GBP11 billion in over 13,200 businesses and currently has a portfolio of investments in almost 3,000 companies, with a combined valuation of more than GBP4.7 billion.

CONTACT: Andrew Foyle, CEO, Argo Interactive Tel: +44 (0)1243 815 815 Stan Vincent, PR Account Director (CMC Ltd) Tel: +44 (0)20 7924 7448 John McMonigall, Director, Apax Partners Tel: +44 (0)20 7872 6300 Matthew Mead, Investment Executive, 3i Tel: +44 (0)118 958 4344

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