Xceed Raises $30 Million in Private Offering

Interactive solutions and e-business consulting company Xceed Inc. closed on a $30 million private
offering of securities to a group of investors led by Ramius Capital Group.

Funds managed by Ramius Capital first invested in Xceed in June of 1999. The
company said it plans to use the funds for financing the company’s growth and
acquisition plan as well as general working capital purposes.

Ramius Capital Group is a private investment firm that makes direct
investments in growth and technology companies. Principals are Peter Cohen,
former chairman and chief executive officer of Shearson Lehman Brothers; Morgan Stark, former
president of Chemical Securities; Thomas Strauss, former president of Salomon
Brothers; and Jeffrey Solomon, head of direct investments at the firm.

“In addition to the ability to more swiftly consolidate our various Silicon
Alley offices into a more cohesive New York City unit, we also look to this
capital to help us immediately capitalize on new business opportunities ”
said Scott Mednick, Xceed chairman and chief strategic officer.

The company issued to investors 30,000 shares of Series A Cumulative
Convertible Preferred Stock, which is convertible into shares of common stock
at a conversion price per share of $36 and pays a dividend of 4 percent
quarterly, and warrants to purchase 183,273 shares of common stock at an
exercise price of $50.10 per share.