SAN JOSE, Calif. -- SOFTonNET, a provider of
application streaming technology, said it has raised
$2 million in Series B funding.

The round was led by STIC IT Venture Capital
with participation by LG Venture Investments, both
existing shareholders in SOFTonNET.

New funds will be dedicated to business and
product development, said CEO Keibock Lee. Valuation
for this round was $28 million, up from the last
round's valuation of $20 million. With monthly burn
rate of $200,000, the company is running at breakeven,
Mr. Lee said, adding that the new money is expected
to last nine months.

According to Mr. Lee, revenue projections for
this year are $8 million. For 2002, the company
is targeting $20 million.

There were no changes to the company's four-member
board of directors as a result of the new funding.
Sitting on the board as outside directors are Kiho
Park, executive director at STIC IT Venture Capital;
and Young Park, president of LG Venture Investments.
The board is full.

Founded in 1998, SOFTonNET has raised $5 million
to date. The company is also backed by Bokwang Investments
and Fuji Electronics.