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Arlington-Based buySAFE, Inc. Secures $13.25 Million in Funding

World's Leading eCommerce Bonding Service Surpasses
$1.2B of Product Sealed and Attracts Gold-Standard Investors

ARLINGTON, Va. (March 15, 2005) — In one of the largest early-stage financings in the national capitol region in recent history, Arlington-based buySAFE, Inc., the world's leading eCommerce and auction bonding service, announced today that it has secured $13.25 million in equity from a team led by Grotech Capital Group and Core Capital Partners. First-round funders Hartford Ventures and Thomas Rutherfoord, Inc. also invested.

buySAFE's offering is the only solution that protects buyers before, during and after a transaction. Applying the latest advances in underwriting techniques and proprietary technology, buySAFE first verifies merchants' identities and confirms they are financially stable and can live up to the promises they make. buySAFE then enables online merchants to guarantee their transactions up to $25,000 with a surety bond from Liberty Mutual. Jeff Grass, buySAFE's CEO said, "Since only the most reliable and trustworthy merchants can display the buySAFE Seal — the mark of a bonded transaction - and become a Bonded Seller™, millions of current and future online shoppers in the U.S. can now be confident when they see the Seal that they are buying from one of the best merchants anywhere."

The funding is intended to accelerate the Company's rapid growth and adoption by on-line sellers and buyers. Over the past 16 months since start-up, buySAFE has sealed over $1.2B worth of transactions ($275M in the month of February 2005); issued, as agent for the surety, more than half a million bonds; and in February delivered more than five million views of the buySAFE Seal—the mark of quality that demonstrates a merchant's trustworthiness and provides buyers peace of mind. In addition, the company already has strategic partnerships with a number of the leading online sales organizations, including: the Professional eBay Sellers Alliance (PeSA), representing more than 700 of the largest sellers on eBay; Western Union BidPay online payment service; Channel Advisor and Zoovy, two of the leading service providers to online merchants and auction sellers; and TIAS, the leading marketplace for fine antiques and collectibles on the Internet.

Frank A. Adams, Managing General Partner of Grotech, believes the Company can change the face of eCommerce. "buySAFE provides a compelling solution to a fundamental problem with the Internet and eCommerce today," said Adams. "Millions of online shoppers avoid buying from small- to mid-sized online retailers who lack a trusted, national brand. We believe buySAFE provides a solution that allows these merchants to compete more effectively against the national brands."

Jonathan Silver, Managing Partner of Core Capital added, "We see buySAFE's ability to provide an efficient, scalable bonding solution for virtually any Internet sale as a catalyst for eCommerce growth. By eliminating anxiety for online shoppers while increasing sales for merchants, buySAFE makes online marketplaces more economically efficient. buySAFE is one of the few companies we've seen with such a broad, compelling value proposition."

Both Adams and Silver joined the buySAFE board.

Jeff Grass, CEO, said: "We are incredibly pleased to have attracted investors of the caliber of both Grotech and Core Capital. Both firms have very successful track records in identifying winning technologies and terrific reputations for working effectively and collaboratively with management to build strong, successful companies."

about buySAFE (www.buysafe.com)

buySAFE, Inc. creates a safe and stress-free online shopping environment through bonded shopping - the only program that uses surety bonds to provide protection for individual buyers from online transaction risks. buySAFE reduces risks for buyers and increases profit opportunities for sellers by comprehensively qualifying online sellers and providing the buySAFE Seal to approved sellers for display on their item listings. Online transactions are further protected with surety bonds issued by buySAFE's trusted financial institution partners. buySAFE is headquartered in Arlington, Virginia.

about Grotech Capital Group

Grotech Capital Group, the largest private equity firm focused exclusively on the Mid-Atlantic and Southeastern United States, has a successful, 20-year track record. With nearly one billion dollars under management and offices in Maryland and Virginia, Grotech is a recognized leader investing in both emerging technology and traditional industries, including communications, technology, healthcare, and business and consumer products and services.

about Core Capital Group

Core Capital is a $320 million venture capital fund that provides financing to both early-stage ventures and small to mid-sized growth companies. The company focuses principally on the kinds of "core" or fundamental technologies that enable or enhance information, data and communication. Core Capital is headquartered in Washington, D.C. and most of its investments are made on the East Coast.

about Hartford Ventures

Hartford Ventures, a unit of The Hartford Financial Services Group, Inc., invests and partners with companies whose new technologies can provide significant advantages and efficiencies to the distribution of insurance and insurance processes. The organization seeks out companies in all stages of development that focus on new insurance distribution and underwriting models, information technology and security.

about Thomas Rutherfoord, Inc.

Rutherfoord is the largest independent insurance brokerage and risk management consulting firm based in Virginia. Besides business insurance, Rutherfoord's services include: surety bonding, risk/claims control, employee benefits, environmental and international insurance. Rutherfoord also focuses on several industry specialties such as marine, transportation, construction, real estate and healthcare.

Founded in 1916, Rutherfoord employs 225 people in offices in Virginia, North Carolina, Georgia and Pennsylvania. Rutherfoord was recently ranked 58th on the "Top 100 Largest Brokers of US Business."

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