zGraffiti Closes $2 Million in First Round Financing

McLean, VA-June 15, 2000 - zGraffiti, Inc., a Business-to-Business, application service provider (ASP) developing technologies to assist companies in effectively conducting electronic Customer Relationship Management (e-CRM) announced today that it had closed over $2 million in a first round of funding, led by Potomac Ventures. Steve Walker & Associates, Dr. C.K. Prahalad, Complete Business Solutions, Inc (Nasdaq: CBSI) and Avatar Capital Partners also participated in the first round.

"We are extremely pleased to partner with such an esteemed group of investors", said Jitendra Vyas, CEO of zGraffiti. "All of our investors bring tremendous energy, intellect and resources to this partnership, and we plan on leveraging their extensive networks to assist zGraffiti in accelerating adoption of our revolutionary technologies. With our patent-pending technologies, we will create virtual CRM capabilities for our on-line and off-line corporate clients."

zGraffiti will be launching its first application, the Dynamic Intercept Marketerer Ô, a marketing solution focused on improving the retention of existing customers. zGraffiti's fully customized, consumer retention and merchandising platform is configured to create new interfaces between companies and their customers in order to achieve marketing, branding and retention objectives. Companies can enhance the lifetime value of their existing customer base by using zGraffiti to continuously connect to their customers and deliver real-time, relevant, targeted messages.

"We chose to invest in zGraffiti because we believe they are ideally suited to succeed in the e-CRM space", said Tom Ross, partner at Potomac Ventures. "We believe zGraffiti's technologies will be widely adopted by companies large and small as the definitive solution to the problem of customer retention. "

Added Steve Walker, of Steve Walker & Associates, "zGraffiti has developed a powerful technology for helping e-commerce sites retain their customers that will change the landscape of how businesses compete for sales on the web."

About Potomac Ventures
Potomac Ventures is a seed stage venture fund focused on Internet and related technology businesses in the Washington, DC area. Potomac Ventures offers a "high touch" approach to investing, working closely with its portfolio companies to set strategic direction, recruit talent, establish networks and partnerships and secure later round financing. Other investments include SafeRent, Away.com, FindLaw and FreightDesk.

About Steve Walker & Associates
Steve Walker & Associates, based in Glenwood, Md., is a private investment fund that invests seed capital and business consulting services to technology companies, primarily in the mid-Atlantic region. Some of its portfolio companies include BioNetrix, Brainbench, Ultraprise and ZonaFinanciera.

About Complete Business Solutions, Inc.
Complete Business Solutions, Inc. is a worldwide provider of information-technology (IT) services to large and mid-size organizations. The Company offers its customers a broad range of IT services, from advising customers on strategic technology plans to developing and implementing appropriate IT applications solutions. CBSI offers custom-tailored solutions based on an assessment of each client's needs. The Company's services include: e-business transformation services; consulting; large systems applications development and maintenance; packaged software implementation, such as ERP; and contract programming services. CBSI achieved Level 5 quality ratings at offshore development centers in India in December 1999, one of very few companies worldwide to achieve this designation as set by the Software Engineering Institute's Capability Maturity Model.

About Dr. C.K. Prahalad
C.K. Prahalad, Ph.D., is a Harvey C. Fruehauf Professor of Business Administration at the University of Michigan Graduate School of Business Administration, Ann Arbor. Dr. Prahalad is also Chairman of Praja, Inc. Dr. Prahalad specializes in corporate strategy and the role and value of top management in large, diversified, multinational corporations. Among his many articles and books is Competing for the Future (1994), co-authored with Gary Hamel. Dr. Prahalad has consulted with the top management of AT&T, Cargill, Eastman Kodak, Honeywell, ICL, Philips, TRW, Quantum, NCR, and Oracle.

About Avatar Capital
Avatar Capital Partners (ACP), LLC is a Bethesda, MD-based venture capital firm with a focus on investing in network infrastructure, IT services and software companies. Avatar Capital Partners takes a hands-on approach with its portfolio companies to ensure their success. ACP leverages its top-tier technology, business development, and marketing relationships to develop and nurture its portfolio. Avatar's many leading-edge investments have included iPing, eWanted, Navic Systems, BrainGEM, zBox, IAOL, Surface Exchange, MDPad, SkyFlow, and SNAZ.com.

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