Washington, DC, January 16, 2001

TDF - Telecommunications Development Fund, a Washington, DC-based venture capital firm that finances early stage telecommunications technology companies, today announced its role as a lead investor in the closing of a $6.5-million Series A round of financing for Netilla(sm) Networks, Inc. (www.netilla.com). Netilla Networks is the service company that supplies secure Web access to office applications. Bethlehem, Pa.-based Mid-Atlantic Venture Funds (MAVF) co-led the round.

Netilla Networks will use the funding to launch the Netilla Virtual Office(sm) service, which is currently in beta testing. The service uses patent-pending technology that connects business users to shared software applications, databases, files and e-mail residing on their office networks via a Web browser. The company also is developing a network of systems integrators, value-added resellers (VARs) and other solution providers to serve as a distribution channel.

"Because Netilla Networks supplies a service to a marketplace that is forecast for exponential growth, we selected our lead investors, TDF and MAVF, for the invaluable insight and strategic counsel they characteristically provide to their portfolio clients in the technology space," noted Reginald (Reggie) Best, CEO, Netilla Networks. "Each of these firms supports their companies with a wealth of experience-based resources that extend beyond capital." Charles Ross, Principal of TDF and Frederick J. Beste III, CEO of MAVF will join Netilla Networks' board of directors.

"TDF targets innovative technologies and services that expand communications options for business," said Ross. "Whether it's an interactive TV platform supplied by Kobalt Interactive or technology that enables the secure delivery of Internet content to wireless devices supplied by Invertix, each of our portfolio clients facilitates the delivery of any type of media, to anybody, anywhere, at any time. Netilla Networks is a welcome addition to our ever-increasing group of portfolio clients," he concluded, noting that TDF is an early adopter of Netilla Virtual Office(sm) service.

Best also noted that last July Netilla Networks' business plan had earned recognition as "the company most likely to get launched in the technology space" out of more than 100 participants at Alliant Technology's Get Launched competition.Joining TDF and MAVF in the round were: Ascend Venture Group, LLC; Bencas Capital, LLC; Early Stage Enterprises, LP; Fleet Development Ventures, LLC; The Hatch Group; New Jersey Technology Council Venture Fund; Tarantella, Inc.; and private investors.

About TDF
Located in Washington, D.C., TDF combines telecommunications and management expertise with venture capital to grow promising seed and early stage companies into telecommunications industry leaders. With initial equity investments ranging from $375,000 to $1 million, TDF works with companies developing cutting-edge technologies in wireline and wireless voice and data communications and casting environments to help them emerge as market leaders in their industry. TDF is also a series sponsor of Springboard 2000 (www.springboard2000.org), a national initiative to accelerate women's access to the equity markets as both entrepreneurs and investors. For further information on TDF, please visit www.tdfund.com.