GGV Capital Closes $400 Million Venture Fund

GGV III Doubles Total Capital Under Management, Driven by Strong Performance of Expansion-Stage Companies in U.S. and China

October 16, 2006 – Menlo Park, CA – Granite Global Ventures (GGV), a leader in expansion-stage venture capital investments in the U.S. and China, announced today the closing of its $400 million Granite Global Ventures III fund. GGV III was substantially oversubscribed and doubled its capital under management, bringing the total to $800 million.

Granite Global Ventures’ third fund will continue to focus on lead investor positions with expansion-stage companies in the U.S. and China. The partnership plans to invest the fund primarily in technology-based companies, including software, new media, computing, networking, and services, as well as emerging industry sectors in Asia. The investment strategy for GGV III builds on Granite Global Ventures’ success in achieving significant growth and successful exits for its large, diversified portfolio of expansion-stage companies in the U.S. and Asia. The total market value of exits in the six years since GGV’s formation now exceeds $6 billion.

GGV III has attracted a premier group of university endowments, pension funds, foundations, and major financial institutions. The newest fund includes firms based in the U.S. and around the globe. “The strong response to GGV III validates the success of our expansion-stage investment strategy and the strength of our investment team in the U.S. and China,” said Hany Nada, managing director and co-founder of Granite Global Ventures. “Through the endorsement of preeminent, internationally recognized institutional investors on this new fund, we are well positioned to continue building a diversified portfolio of innovative companies that will build long-term value for our investors. At $400 million, our new fund enables us to continue making small- to medium-sized initial investments, with capacity to provide substantially greater capital in follow-on rounds.”

About Granite Global Ventures
Granite Global Ventures is a leader in expansion-stage venture capital investments in the United States and Asia, combining global vision with local insight. GGV’s highly diverse team manages over $800 million from its offices in Silicon Valley, Shanghai, and Singapore. The firm invests across a range of sectors: software, new media, computing, networking, services and healthcare, as well as emerging industry segments in Asia. GGV has provided capital and helped accelerate international business development for its worldwide portfolio of high-growth companies, particularly in the U.S. and China. GGV’s portfolio includes Alibaba.com (combined with Yahoo!), 2Wire, AAC Acoustics (HKSE:2018), and Sirna Therapeutics (NASDAQ:RNAI). Recent exits include Qpass (acquired by Amdocs), Xfire (acquired by Viacom), P-Cube (acquired by Cisco), and Netscaler (acquired by Citrix). For more information, please visit www.ggvc.com.

Further Information
Granite Global Ventures
Stephen Hyndman
650.475.2150

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