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Flagship Ventures and General Catalyst Partners co-lead Investment in Leading IP Risk Management and Mitigation Solutions Company

Waltham, Mass., July 26, 2004 - Black Duck Software, a leading provider of services that enable vendors and enterprises to manage software intellectual property (IP), today announced the closing of a $5 million round of Series A funding co-led by Flagship Ventures and General Catalyst Partners.

Proceeds from the financing will be used to hire key personnel, as well as to execute on the company's go-to-market strategy for its protexIPSM line of services, which was launched in May of 2004.

"Flagship Ventures and General Catalyst Partners are two leaders in the venture capital community and offer early-stage companies like Black Duck significant operational and financial expertise," said Douglas A. Levin, founder, chairman and CEO of Black Duck. "With the backing and support of these two venture firms, Black Duck is poised for significant growth in the near-future and beyond."

"Black Duck's breakthrough technology and services provide a very compelling value proposition for companies developing software," said Roger Heinen, managing director of Flagship Ventures. "The company is well positioned to take advantage of the exponential growth in open source software development. Black Duck solves a real problem because any company developing or buying software needs to know where the code comes from and what licensing obligations come with it."

"Doug had the vision to recognize early on that open source software was moving into mainstream use in both the private and public sector. He saw the opportunity to address the challenges around compliance and management of software IP that this sea change was creating," said Larry Bohn, managing director, General Catalyst Partners. "Black Duck now is executing on that vision as they ship the industry's first, automated solution to tackle the problem of managing software IP, which is generating significant interest among vendors and enterprises."

Both Roger Heinen and Larry Bohn have joined Black Duck's Board of Directors.

About Black Duck Software

Founded in 2002, Waltham, Massachusetts-based Black Duck is the leading information services company offering IP risk management and mitigation solutions. For more information about Black Duck, visit .

About Flagship Ventures

Flagship Ventures is an early-stage venture capital firm focused on creating, financing, and building companies in the Life Science and High Technology sectors. Flagship's team of twenty professionals is among the most experienced in the industry and represents a balance of venture capital, corporate executive, and entrepreneurship expertise. Its principals were involved as founders and investors in nearly 100 firms including: AltaVista, Anesta, Antigenics, Aspect Medical Systems, Astral Point Communications, Celera Genomics, Color Kinetics, Cytyc, DataSage, Exact Sciences, PerSeptive Biosystems, Telecorp PCS and TripAdvisor. Headquartered in Cambridge, MA, Flagship Ventures was founded in 1999 and manages over $600 million. For more information, visit www.flagshipventures.com.

About General Catalyst Partners

General Catalyst Partners is a private equity firm that invests in exceptional entrepreneurs and technical founders who are building the software solution and technology platform companies that will lead innovation and transform industries. Founded in 2000, General Catalyst Partners leverages its principals' extensive operational, business development and technological expertise to provide portfolio companies with a catalyst for success through business building and partnership development assistance. General Catalyst is headquartered in Cambridge, Mass. For more information, visit .