The 41st Parameter Secures $11.2 Million in Series B Funding

Kleiner Perkins and Norwest Venture Partners Investment Reflects Growing Need for Covert Internet Security Across Markets

SCOTTSDALE, Ariz., May 8, 2006 – The 41st Parameter, a pioneer in covert fraud detection and prevention for the online channel, today announced that it has secured $11.2 million in Series B funding. New investor Kleiner Perkins Caufield & Byers (KPCB) – with a portfolio that includes Google, Intuit, Sun, Amazon and others – led the round with additional capital from Series A lead investor Norwest Venture Partners (NVP). The 41st Parameter will use the funding to expand its direct sales and marketing efforts, to build out its core fraud detection and prevention platform for eCommerce, online banking and new segments, and for new product development.

“The growing complexity of Internet fraud coupled with increasing regulatory pressure from agencies such as the FFIEC means online businesses require simple yet highly effective solutions to address the problem,” commented Ted Schlein, managing partner at KPCB and new board member of The 41st Parameter. “Kleiner Perkins has a track record of recognizing companies with a powerful value proposition. We believe in The 41st Parameter’s covert philosophy and unparalleled technology, and see it as vital to a business’s long term, online risk management strategy.”

The 41st Parameter helps online businesses detect, contain and prevent online threats with a combination of patentpending technologies and risk management consulting. The Company’s invisible approach to online security delivers unprecedented detection accuracy rates and fewer false positives, helping to secure online business without compromising the customer experience.

“At a time when the burden of online security is placed squarely on businesses, companies are now recognizing the tremendous value that The 41st Parameter’s antifraud solutions can offer. We identified the Company’s unique value early on, and are extremely pleased with its impressive customer traction to date and its proven ability to deter, detect and prevent online fraud threats,” said Venkat Mohan, general partner at NVP and board member of The 41st Parameter. “I am particularly delighted that Ted Schlein from Kleiner Perkins has joined the company’s board of directors. Ted and KPCB bring an impressive background of achievement and knowledge in both security solutions and online business issues that will enable The 41st Parameter to accelerate its market penetration and help propel the company to the next level.”

“This injection of funds will give us the ability to realize our mission of making fraud history,” said Ori Eisen, founder and CEO of The 41st Parameter. “As the regulatory environment heats up and businesses look for fast and simple solutions, this round of funding will help us meet pent up demand in the banking and eCommerce segments. It also helps position us for expansion into additional industries where online fraud is eroding revenues and consumer confidence in the channel.”