Venrock Associates and Index Ventures Lead $7 Million Series A Investment in Startup B-hive Networks

SAN CARLOS, CALIFORNIA — August 22, 2006

B-hive Networks, a provider of Enterprise Data Network solutions, announced today an initial investment round of $7 million. The round was led by Venrock Associates and Index Ventures.

This round of financing will enable B-hive to expand product development efforts as well as marketing and sales activities. In October 2005, the company raised $500,000 in seed financing from private investors.

B-hive enables enterprise data centers to reliably and cost-effectively deliver web-enabled services in accordance with business objectives. B-hive's products improve visibility and analysis of user transactions in the data center in order to improve the user experience and utilize data center resources effectively.

"Our products are part of the data center networks market" said Yoav Dembak, CEO and co-founder of B-hive. "We believe that our breakthrough Transaction Intelligent Networking™ technology will set the stage for a new class of transaction-aware appliances. We are working closely with several large companies on product trials, with an emphasis on the financial services sector."

"Our investment in B-hive is a reflection of our belief in B-hive as well as the Israeli market in general," said Ohad Finkelstein, partner at Venrock Associates and investment manager for EMEA. "We are pleased to help promising companies move forward to the next stage and we will continue to investigate further investment opportunities in the local market. This is our first investment in Israel since I was appointed to oversee our operations in Europe, the Middle East and Asia."

"Leveraging unique, network-based technology, B-hive addresses the critical need for better performance and availability of web-enabled and multi-tiered applications," said Bernard Dalle, partner at Index Ventures. "We are pleased to help B-hive deliver a new class of solutions that will enable enterprises to provide customers with a superior user experience."

As a result of this investment, Ohad Finkelstein and Bernard Dalle will be joining the board of the company.

About B-hive

B-hive enables enterprise data centers to effectively deliver real-time Transaction Service Level Control for web-enabled applications. B-hive's products improve visibility and analysis of user transactions in the data center and optimize availability, performance and application infrastructure allocation.

B-hive's solution is based on the next generation of data center networking. B-hive's Transaction Intelligent Networking™ technology enables the network to analyze and route business transactions instead of IP packets. As a result, Data Center operations groups can monitor the end-user experience and optimize operations according to approved business policies.

Founded in 2005, B-hive has offices in California and in Israel. Co-founders Yoav Dembak and Asaf Wexler worked together at Breach Security and Gilian Technologies providing various network solutions to enterprise data centers. Mr. Dembak held a number of positions in product management, marketing and sales. Mr. Wexler was chief architect and held a number of senior product development positions.

In addition to Venrock Associates and Index Ventures, B-hive investors include Mr. Reuven Agassi (TopTier, Top Manage), and Mr. Benny Schnaider (Qumranet, P-Cube, Pentacom). For more information, please visit B-hive's Web site at www.Bhive.net.

About Venrock Associates

Venrock Associates was founded as the venture capital arm of the Rockefeller Family and today continues a six-decade tradition of funding entrepreneurs and establishing successful, enduring companies. Venrock was formed in 1969 to build upon the successful investing activities of the Rockefeller Family that began in the late 1930s, when Laurance Rockefeller pioneered early-stage venture financing. Today, having invested more than $1.8 billion in more than 400 companies over the past 36 years, Venrock is one of the most established venture firms in the United States, with investment returns that place it among a small number of premier organizations that have achieved consistently superior performance.

Venrock's activities have focused on early-stage companies in information technology and healthcare. Its long investing history includes such companies as Intel, Apple Computer, Stratacom, Check Point Software, and DoubleClick, in the IT sector, and,Centocor, Millennium Pharmaceuticals, Illumina, Sugen and Idec Pharmaceuticals in the healthcare sector. Venrock's first international investment, in 1995, was in Israel's Check Point Software Technologies Ltd., and it has continued investing in Israel, China, and the U.K. Venrock has offices in New York City, Cambridge, MA, and Menlo Park, CA. For more information, please visit Venrock's website at www.venrock.com.

About Index Ventures

Index Ventures is a leading European venture capital firm active in technology venture investing since 1996. The firm is dedicated to helping top entrepreneurial teams in the Information Technology and Life Science sectors build their companies into market defining global leaders. The firm has offices in Geneva, London and Jersey and focuses its investment activity primarily on Europe and Israel. Investments include Betfair (the world's largest betting exchange); Skype (the pioneering communications company, recently acquired by eBay); MySQL (the world's most popular open source database); SecureWave (a worldwide leader in endpoint security) and Zend (the PHP company). For more information, please visit www.indexventures.com.