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BenefitPoint Raises Over $11 Million in Series C Preferred Stock Financing; Additional $11 Million from Investors and Leading Insurance Brokers Reaffirms Technology and Market Opportunity

SAN FRANCISCO — 20 June 2002 — San Francisco-based, BenefitPoint, the leading Internet-based infrastructure provider for the distribution and management of employee benefits, today announced that it has raised over $11 million in a Series C preferred stock financing. Current investor, HarbourVest Partners, LLC, is leading the Series C round of financing and is being joined by Institutional Venture Partners, Sequoia Capital and major brokerage firms.

The BenefitPoint application creates both economies and efficiencies for insurance carriers, payers, brokers, consultants and employers. Broker participants on the BenefitPoint application currently manage over $100 billion in medical and ancillary premiums in force today.

The additional capital will enable BenefitPoint to accelerate adoption of its application within the employee benefits industry. "We conducted extensive research with numerous brokers and insurance carriers and determined that BenefitPoint is the leading system in the industry, with a strong value proposition for employee benefit brokers, consultants and carriers," said Ofer Nemirovsky, Managing Director of HarbourVest Partners, LLC. "The BenefitPoint business model is solid, with license fees from brokers for client management functionality, carrier fees for administrative information and distribution, partnership connection fees and revenue from value added products."

The capital raised will be used to accelerate BenefitPoint's growth plan. This includes additional product expansion as well as enhancements to the BenefitPoint application to provide greater efficiencies for brokers, consultants and carriers.

"This financing is proof that our business model and our approach are powerful," said John Randazzo, President and CEO of BenefitPoint. "This funding is a milestone for BenefitPoint and will enable us to significantly increase revenue, continue product development and achieve profitability during the next 12 months."

"BenefitPoint's momentum within the industry is a testament to the value that the company brings to employee benefits brokers, consultants and carriers alike," said Jim Durkin, President of Gallagher Benefit Services. "We will further increase market efficiencies by driving business through BenefitPoint with major medical carriers."

"BenefitPoint enables us to support clients with efficient data exchange, analysis and reporting for improved management of their benefit plans," said Robert O'Brien, National Leader of Mercer Human Resource Consulting's Health Care & Group Benefits Practice. "We have deployed the BenefitPoint application around the country and we continue to see growth in use of the system every day."

About BenefitPoint
BenefitPoint delivers the leading Internet-based employee benefits infrastructure for the distribution and management of group insurance products. As the central nervous system of the employee benefits industry, BenefitPoint provides a complete set of industry services, enabling benefits professionals to manage the entire group health insurance and benefits lifecycle.

Building on the existing industry relationships among carriers and brokers and consultants, the BenefitPoint solution combines the efficiency of the Internet with the established distribution model of the insurance industry to increase productivity, improve decision-making and increase efficiency.

Since general availability in February 2001, BenefitPoint has received widespread industry adoption from over 30 regional and national insurance carriers as well as over 100 of the leading U.S.-based brokerage and consulting firms. BenefitPoint is headquartered in San Francisco, CA and may be reached at 415/277-5600. To learn more, click http://www.benefitpoint.com/.

BenefitsAlliance, a wholly owned subsidiary of BenefitPoint Holding Corp., is an employee benefits purchasing group designed for California-based businesses with 50 to 5,000 employees. The BenefitsAlliance program is accessible to employers through benefits brokerage and consulting firms.

BenefitPoint is privately held.

About Sequoia Capital
Since 1972, Sequoia Capital has provided startup venture capital for very smart people who want to turn ideas into companies. As the "Entrepreneurs Behind the Entrepreneurs," Sequoia Capital's Partners have worked with innovators such as Sandy Lerner and Len Bozack of Cisco Systems, Jerry Yang and David Filo of Yahoo!, Gaurav Garg of Redback Networks, Larry Page and Sergey Brin of Google, Dan Warmenhoven of Network Appliance, T.J. Rodgers of Cypress Semiconductor, Lou Tomasetta of Vitesse Semiconductor, Steve Jobs of Apple Computer and Larry Ellison of Oracle. The companies organized by Sequoia Capital now account for about 10% of the value of NASDAQ. To learn more about Sequoia Capital visit http://www.sequoiacap.com/.

About Institutional Venture Partners
Institutional Venture Partners (IVP) has invested in top-tier companies since 1974. Managing Director, Sam Colella, a BenefitPoint Director, has funded numerous successful start-ups and has a reputation for being a contributing board member. To learn more about Institutional Venture Partners visit http://www.ivp.com/.

About HarbourVest
HarbourVest Partners, LLC is a leading global private equity investment firm, founded in 1997 to assume the business of Hancock Venture Partners, Inc. With more than $12 billion under management, the partnership invests in three distinct areas: new partnerships, secondary interests in partnerships and direct investments in operating companies within select industries. HarbourVest is 100 percent owned by its 12 managing directors, all of whom have been investing together since 1979. The managing directors have expertise in the areas of software, hardware, data communications, telecommunications, financial services and management buyouts of operating companies. To learn more about HarbourVest Partners visit http://www.harbourvest.com/.

Note to Editors: BenefitPoint and "central nervous system of the employee benefits industry" are service marks of BenefitPoint, Inc. All other company and product names mentioned here are service marks of their respective owners.

CONTACT: BenefitPoint, San Francisco Katie Bennett, 415/277-5756 kbennett@benefitpoint.com http://www.benefitpoint.com/