The financing round was led by Perseus LLC and AT&T Ventures and subscribed to by existing investors Norwest Ventures, Venrock Partners and private investors. This is the second round of funding for NetObjects, which follows a first round of $5.4 million in February 1996.

"With the help of John's formidable strategic and operational strengths and the financial resources of blue-chip investors, NetObjects is poised to grow into a major software company," said Samir Arora, chairman and CEO of NetObjects. "We plan to apply the new resources for future product development and to support our award-winning NetObjects Fusion authoring tool which is fast becoming a standard for professional Macintosh and Windows Web developers worldwide."

"As an early supporter of NetObjects, I'm delighted to increase my involvement in a company that has captured the imagination of Web site builders and the software industry with an innovative product and proven business model," said Sculley.

Sculley is a partner in Perseus LLC which is a Washington D.C.-based merchant bank investing its own and partners' funds in information technology, publishing, biotechnology and other areas in which its partners have an expertise.

In its first year of operation ending December 1996, NetObjects unveiled 3 shrink-wrapped Web site authoring software packages, provided enabling technology for the 24 Hours in Cyberspace landmark online publishing event, established partnerships with leading Internet players AT&T, Apple, IBM, Javasoft, Netscape, Microsoft and UUNet and won several industry accolades including being named one of Fortune's 25 Cool companies and CNET's Best Internet Product of 1996.

About NetObjects
NetObjects, Inc. develops Web site building products that are based on the first visual, site-oriented approach to building Web sites, unlike first generation, text-based, page-oriented tools. NetObjects FusionTM is the first smart Web site building application that integrates automated site building, professional quality design and data publishing, thereby lowering the cost, time and tedium of building high-quality Web sites. NetObjects Fusion is actively promoted by NetObjects' partners Apple Computer, AT&T, IBM, Javasoft, Microsoft, Netscape, and UUNET Technologies.

Founded in 1995 and headquartered in Redwood City, Calif., NetObjects is privately-held and funded by Norwest Venture Capital, Venrock Associates and private investors. Information about NetObjects and its products can be found on the World Wide Web at http://www.netobjects.com or by calling 1-888-449-6400. NetObjects Fusion is a trademark of NetObjects, Inc.

For press inquiries, contact:
Kamini Ramani
Director of Corporate Communications
(415) 482-3238