MARKETO RAISES SERIES A FUNDING FROM INTERWEST PARTNERS

Bruce Cleveland and Doug Pepper Join Board of On-Demand Marketing Automation Company

SAN MATEO, Calif. - October 15, 2006 - Marketo, which provides affordable, easy-to-use marketing automation software that helps B2B marketing professionals drive revenue and improve accountability, announced today that it has closed Series A funding from InterWest Partners.

"We are very pleased to have InterWest Partners as allies in the delivery of our vision for a new kind of marketing automation solution," said Phil Fernandez, president and CEO of Marketo. "This funding will enable us to rapidly deliver innovative solutions for lead generation, lead nurturing, and marketing accountability."

In addition, the company announced that Bruce Cleveland and Doug Pepper, both partners at InterWest, have taken board of director seats. Prior to InterWest, Cleveland was one of the original members of the Siebel executive team and held numerous executive positions including SVP of Marketing and Alliances. Pepper sits on the boards of several enterprise software and services companies including Varolii, Lombardi Software, INVIDI Technologies and Active Reasoning. Prior to InterWest, he held positions at Amazon.com and Goldman Sachs.

"If CMOs want to keep their jobs, they need to turn marketing from a cost center into a revenue center," said Cleveland. "The days of marketing being primarily creative and brand-oriented are over. Marketing must begin the sales process, generate more and better qualified leads for sales, and to be able to demonstrate ROI from the marketing spend. Marketo's on-demand solutions will deliver on this fundamental proposition without requiring its customers to make large up-front investments or require IT support."

Commenting on joining the board, Pepper said, "I joined Marketo because the time is right for marketing automation, and we believe the Marketo executive team has the vision and experience to establish Marketo as a leader in the space."

About InterWest Partners

InterWest Partners (www.interwest.com), founded in 1979, is a leading diversified venture capital firm focused on building long-term relationships with entrepreneurs and portfolio companies. With more than $2 billion of capital raised, including its new investment fund of $600 million, InterWest has 11 experienced partners in Menlo Park, CA and Dallas, TX, who bring together deep domain knowledge in life sciences and information technology.

About Marketo

Marketo (www.marketo.com) provides affordable, easy-to use-marketing automation software that helps B2B marketing professionals drive revenue and improve accountability. Marketo's solutions automate the lead generation and lead nurturing processes, allowing marketing to generate more sales-ready opportunities, while integrated analytics bring accountability and respect to the CMO and help turn marketing from a cost center into a revenue-generating part of the company. Marketo's products are easy to use and easy to buy from existing budgets because they don't require annual contracts or upfront fees. Delivered as an on-demand service, customers can be running Marketo in less than 5 minutes, with no IT support.

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