New York, NY. - July 1, 2003 - KaVaDo, Inc., the technology leader in Web Application Protection, today announced that it has secured $10 million in third-round funding led by Pequot Ventures. All previous investors, including Banc of America Equity Partners, Neurone Ventures and 3i, also participated in this round. Karen White, general partner at Pequot Ventures, joins the KaVaDo board of directors. KaVaDo continues to grow internationally with expanded operations and partners in the United States, Europe, Asia and the Middle East.

"Web applications of all kinds have become core corporate assets of vital information. Web application security technology is becoming a clear component of defense in depth strategies for many organizations," said Michael Suby, senior research analyst at Stratecast Partners. "There is no question security at every level continues to evolve and KaVaDo is poised to address application layer security concerns."

"This past year we developed both our partner network and customer base while advancing our proven Web application security solutions," said Tal Gilat, CEO and co-founder of KaVaDo. "The additional funding from Pequot and existing investors will support our aggressive plan to bring Web application protection to enterprises around the world in a cost effective manner."

"KaVaDo has established itself as the early technology leader in this critically important and high-growth sector of the enterprise security market," said Karen White, general partner at Pequot Ventures. "The company has a unique ability to protect evolving, complex IT environments with its Web application security products. We look forward to working with the management team and the board of directors as KaVaDo achieves its next level of success in the marketplace."

"Our clients are escalating the need for Web application security on their IT priority lists," said Steve Boriotti, chief security officer of SecurityAppraisers. "Companies running production Web servers need a safety net for software exploits that arise; KaVaDo's integrated suite of application protection products is an excellent solution that we can offer to companies. Rather than taking chances and running software fixes that have not been thoroughly tested, KaVaDo affords the option of running your Internet applications securely without the inherent risk of unproven patches. Security vulnerabilities will continue to become more complex and we're confident that KaVaDo will be on top of these issues."

KaVaDo maintains technology leadership in Web Application Protection with the success of its InterDo and ScanDo product lines. By integrating state-of-the-art Web application firewall and scanner technologies, KaVaDo offers customers a distinct advantage over any other solution on the market. The integration of the two products enables customers to automatically and quickly set a high level of positive security policy for their entire Web application environment, preventing known and unknown threats without requiring constant updates or new signatures.

About Pequot Ventures
Pequot Ventures is the direct venture investment arm of Pequot Capital Management, Inc. and has a direct investment focus on today's most dynamic startup, growth stage and later-stage companies in the technology, telecommunications and healthcare sectors. Pequot Ventures creates value by bringing energy and substantial industry expertise to its portfolio companies through the collective intellectual capital, deep operating experience and extensive network of its investment team. The firm leverages its unique multi-billion dollar presence across both public and private equity markets to help build competitive, sustainable businesses in fast changing environments throughout their lifecycle. Pequot Ventures accomplishes this goal in close partnership with the founders and management teams of its portfolio companies. For more information, please visit http://www.pequotventures.com

About KaVaDo Inc.
KaVaDo provides next-generation Web Application Protection and assessment solutions for the corporate market using its patent-pending Protected Path™ technology. These solutions account for the various types of threats against Web applications and allow users to apply the necessary protection against potential threats, known and unknown. KaVaDo offers a unique, effective approach to Web Application Protection with minimum strain on system resources, easy installation and management, and flexibility to handle any applications under various environments.

The company is based in New York with international research and development, sales and support facilities. KaVaDo has secured funding from Banc of America Equity Partners, Neurone Ventures, Pequot Ventures and 3i. More information on the company can be found at http://www.kavado.com.