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Infusion Software Closes $9 Million Funding Round Led by Mohr Davidow Ventures: Funding to Accelerate Growth of On-Demand CRM for Small Businesses

PHOENIX (Business Wire EON) October 17, 2007 -- Infusion Software will use the financing to accelerate customer acquisition via increased sales and marketing efforts and to enhance its award-winning CRM software built specifically for true small businesses that want to grow quickly and profitably. True small businesses (TSB) are owner-run organizations with 2-50 employees that have grown organically. These businesses do not have layers like larger organizations, and thus automation of business processes via easy-to-use technology is highly desired.

"Infusion's unique approach to CRM technology, strong customer traction among small businesses, and winning management team have enabled the company to capture a notable share of what we believe to be a very significant market opportunity," said Nancy Schoendorf, MDV general partner and an Infusion Software board member. "What they've done is answered the need among small business owners everywhere for a tool that streamlines and boosts sales and marketing activities without the need to hire additional salesforce."

Infusion Software's product, Infusion CRM, is a Software-as-a-Service (SaaS) solution that redefines small business CRM. Infusion CRM answers the need among small businesses for one comprehensive solution that centralizes, organizes and automates lead generation, lead conversion and client fulfillment, enabling them to automate their marketing, sales, and customer management. Infusion CRM was developed to provide a centralized customer management system that goes far beyond any other CRM software available on the market, with critical modules including: e-commerce, lead capture, email marketing, click tracking, billing and collections and other functions of sales, marketing and customer service that are not found in other CRM software programs.

"MDV brings significant software and business scaling expertise that will prove invaluable," said Clate Mask, President and CEO of Infusion Software. "This investment allows us to accelerate our plan to revolutionize the way small businesses drive and manage their growth."

A growing number of companies are making the switch to Infusion CRM because of frustration with using several disparate software programs such as an e-commerce application, contact manager database, spreadsheets and e-mail marketing system. All of these systems are separate programs that do not 'talk to each other,' which makes it almost impossible for small businesses to effectively manage their prospects and customers. Infusion Software currently has nearly 1000 customers and thousands of users actively using its online CRM solution.

"If you look at how Intuit is able to dominate the small business finance and accounting market with Quickbooks, it's clear that no one has done it with real CRM, especially with a web-based offering," said Pat Sullivan, Infusion Software's Board Member and founder of ACT!(R) and SalesLogix. "I believe that Infusion CRM has a very real and tremendous opportunity to do this, and become the leading CRM for small business."

About Infusion Software

Infusion Software liberates and empowers small businesses by putting their marketing, sales, and customer management on auto-pilot. The company's flagship product, Infusion CRM, is a web-based software program (also known as SaaS) that centralizes, organizes and automates lead generation, lead conversion and client fulfillment for true small businesses (those with 2-50 employees) who are tired of dealing with a hodge-podge of incompatible software programs and manual grunt labor. Unlike any other CRM software available on the market today, Infusion CRM is the most comprehensive, active CRM built specifically for marketers, entrepreneurs and successful small businesses that recognize marketing and automation are necessary to growing quickly and profitably. The company, founded in 2001, is privately held and headquartered in Arizona. For more visit www.infusionsoft.com.

About MDV-Mohr Davidow Ventures

For 25 years MDV, a leading Silicon Valley-based venture capital firm, has identified, mentored and developed entrepreneurs and young companies redefining business, technology and medicine. The firm invests around three major business and science concerns: Personalizing Medicine; Powering the Planet; and Driving the Digital World. The firm partners with entrepreneurs who have deep expertise in life sciences, information technology and energy and materials. MDV's team engages very early in the life of a company to impact its long-term success. Category-leading companies funded by MDV include: Agile (ORCL); Broadbase (KANA); Brocade; Energy Innovations; FormFactor; Genius; hi5; Medio Systems; Nanosolar; ONI Systems (CIEN); Panasas; ParAllele (AFFX); Pivotal Technologies (BRCM); Proofpoint; Revenue Science; Shutterfly and Tethys Bioscience. For more information, please visit www.mdv.com.

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