FOR IMMEDIATE RELEASE

NetBotz Secures $7 Million in Funding from Austin Ventures
Mezzanine Funding To Help Fast-Growing Company Keep Pace with Market Demand

AUSTIN, Texas- May 19, 2003 - NetBotz®, Inc., the leading global provider of IP-based intelligent physical security solutions, today announced it has closed a $7 million mezzanine funding round with Austin Ventures. This latest investment will be used to support NetBotz' efforts in accelerating its current explosive market and revenue growth. To date, the company has raised $27 million in funding.

More than 2,000 customers, including Fortune 500 companies, leading academic institutions and many of the federal government's largest agencies and departments, use NetBotz to secure their critical assets from physical threats such as malicious human acts and hostile environmental conditions. Recently announced advances introduced in both the NetBotz 500 Sentry appliance and NetBotz Central 2.0 leapfrog competitive offerings, providing the worldwide market's only secure, surveillance-level physical security solution that can provide enterprise-wide physical threat management.

"NetBotz has all the key ingredients for continuing to sustain the tremendous growth rate it has achieved to date," said John Thornton, General Partner, Austin Ventures. "Its experienced management team has turned the company into a leader in the physical security space. It has done this by combining operational expertise, the ability to execute on its technology vision, and organizational leadership that has created a customer-focused company. All these factors lead us to believe the company will continue its fast upward trajectory."

In 2002 alone, NetBotz doubled its revenue quarter to quarter. As remarkable, since the beginning of 2003, the company has added more than 500 new customers, including Quad Graphics, the world's largest privately held commercial printer. All this has been accomplished in the face of an uncertain economic climate.

"The increasing worldwide demand for the NetBotz solution has created a corresponding demand for us to more heavily ramp up all aspects of our business," said Tom Goldman, president/CEO of NetBotz. "With additional funding from Austin Ventures, NetBotz will now be able more quickly capture the lion's share of the physical security marketplace. Investment from Austin Ventures is literally helping us build on our success and we're very proud to have them join what we believe is a world-class group of investors."

About NetBotz (www.netbotz.com)
NetBotz, Inc. is the leading global provider of IP-based intelligent physical security solutions. Some 2,000 organizations use the NetBotz solution, which prevents business and financial losses attributed to network downtime by providing early warning of conditions that threaten the integrity of a company's data, technical and equipment assets. NetBotz markets its solution through a network of distributors, solution partners and accredited resellers. Based in Austin, Texas, NetBotz is a privately held company with funding from QuestMark Partners, SSM Venture Partners, CenterPoint Ventures, Osprey Ventures, and Hill Partners. NetBotz has received the Best in Show Award in the Network Management Category at NetWorld+Interop and is a recipient of KPMG's Start-up Standout Award.