Adams Capital Management Joins Venrock Associates and Palomar Ventures in Second Round of VC Funding for Data Warehouse Appliance Vendor

Aliso Viejo, CA – May 2, 2005 – DATAllegro, supplier of the premier price/performance data warehouse appliance, today announced the close of its second round of funding. Led by Adams Capital Management (ACM), the round included pro-rata contributions from Series A investors Palomar Ventures and Venrock Associates (see press release from 8/9/04). Together the three top tier VCs invested $15 million in the Series B, at a significantly increased price per share.

Initially planned for late 2005, DATAllegro completed its second round of funding earlier than planned despite having used only a small portion of its Series A funding. The early closing of the Series B was motivated by intense interest in DATAllegro and the data warehouse space from the VC community. DATAllegro recently announced the launch of its data warehouse appliance and has met or exceeded its goals in terms of budget, product delivery, product performance and beta customer acquisition.

“Although a number of VCs were willing to meet our terms for the Series B, ACM’s experience, understanding of the market and of DATAllegro’s opportunity made them the best choice for us,” said Stuart Frost, CEO of DATAllegro. “We’re very pleased with all the investors we’ve partnered with and look forward utilizing their talents and support as we continue to grow and mature.”

Coincident with the investment, George Ugras from ACM joined the Board of Directors of DATAllegro, Inc. “We are excited to add DATAllegro to our portfolio as it meets our market-centric investment criteria, and its differentiated product offering creates a clear competitive advantage,” said George Ugras from
ACM. “The company leverages unique, protectable technology to create distinct economic value for customers in a large and growing market. We are looking forward to working with this proven management team and our co-investors to help DATAllegro become a market leader.”

“We welcome George Ugras of Adams Capital Management to the board of DATAllegro,” said Randy Lunn of Palomar Ventures. “He brings in-depth market and technical knowledge to complement the skills of management and the existing board members.”

"It's been a real pleasure to work with DATAllegro," said Brian Ascher from Venrock Associates. "The management team's skills and experience have enabled the company to perform extremely well over the past 8 months. The Series B and addition of ACM to the team will be a real asset in reaching the next level."

ABOUT ADAMS CAPITAL MANAGEMENT, INC.
Established in 1994, Adams Capital Management is a national venture capital firm noted for its domain expertise in disruptive technologies in the Information Technology, Semiconductor, Applied Materials and Telecommunications industries. ACM deploys a market-centric strategy to invest in emerging growth
companies. With $700 million currently under management, ACM is an active lead investor, with four strategically located offices in Austin, Boston, Palo Alto, and Pittsburgh. For more information, visit www.acm.com.

ABOUT PALOMAR VENTURES
Palomar Ventures was launched in 1999 by veteran venture capitalists to focus on early stage information technology companies that demonstrate the potential for exceptional growth and market leadership. The partners at Palomar have contributed their energy, strategic insight, network of corporate relationships and recruiting skills to assist in building nearly 50 public companies. Palomar Ventures is currently investing
Palomar II, a $220 million fund. Selected investments include Continuous Computing, Composite Software, Dorado, Efficient Networks, Gluecode, Inovys, KnowNow, Network Inference, Syntricity, Virtela, and Voxify.

ABOUT VENROCK ASSOCIATES
Venrock Associates was founded as the venture capital arm of the Rockefeller Family and continues a tradition of funding entrepreneurs that now spans over six decades. Laurance S. Rockefeller pioneered early stage venture financing in the 1930s. As one of most experienced venture firms in the United States, Venrock maintains a tradition of collaboration with talented entrepreneurs to establish successful, enduring companies. During its history Venrock has made over 350 investments in portfolio companies that have achieved an aggregate market capitalization of $1.2 trillion, combined annual revenues of $150 billion, and employees totaling over 773,000. For more information visit www.venrock.com.

ABOUT DATALLEGRO™
DATAllegro offers a data warehouse appliance that provides dramatic performance improvement to large volume data warehouses, without necessarily replacing the existing infrastructure. Using DATAllegro’s patent-pending technology, companies can run faster and more complex queries on their data in order to increase their business intelligence. Based in Aliso Viejo, California, DATAllegro delivers a fast, flexible
and affordable solution that allows a company’s data to grow at the pace of its business. For more information on DATAllegro go to www.DATAllegro.com.