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         	&nbsp;<font face="verdana, verdana, arial, geneva, helvetica" size=1 color="white"><b>For Jeffrey Dasovich, Enron</b></font>
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  		<b>VENTURE MARKET SUMMARY</b>
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  		<td><BR><div id="market"><font face="verdana, arial, geneva, helvetica" size="2">With only four new deals on Friday, most of those in the venture business took it easy as summer 2001 came to a end. Nevertheless, eAccess, a provider of broadband Internet access, announced plans to close on a $76-million to $119-million Series C private placement led by new investor Japan Telecom, which will hold a 15% stake in the company. <br><br>Meanwhile, on the early-stage front, Metalforming Controls, which develops metal-stamping presses, secured $1.35 million in Series A financing, led by new investor Aavin Venture Capital, while eWingz Systems, a provider of cross-carrier SMS services, scored $3.5 million in its first round from a pool of investors that included Draper Fisher Jurvetson. <br><br>And Rockwell Schnabel, founder and managing director
of Trident Capital, may be leaving his firm. He&#39;s expected to be nominated by President Bush as the U.S. envoy to the European Union. If his nomination is approved, Mr. Schnabel will serve the duration of the Bush administration, but will remain a special limited partner at Trident Capital. <br><br>As for bad news, Internet service provider Relera, which has now raised $310 million, laid off 380 of its 455 employees in the company&#39;s second round of layoffs. The layoffs hit Relera&#39;s offices in Denver and San Diego. And optical components manufacturer, Zenastra Photonics, cut 160 positions. The company&#39;s backers include Bank of Montreal Capital, VenGrowth, and Ventures West 7. <BR><i>- Amanda Briggs</i></font></div></td>
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	<font face="verdana, verdana, arial, geneva, helvetica" SIZE=2 color="black"><b>NOTABLE DEALS</b></font><BR><BR>
	<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwQHPKPLKLHI"><b><font face="verdana, arial, geneva, helvetica" size="2">ISP Relera Restructures, Lays Off 84% of Staff </font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=QHPKPLKLHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">DENVER, COLO. -- Relera, an Internet service provider, has laid off 380 of 455 employees, or 84% of its staff, in a second round of layoffs as it restructures operations, said president and chief operating officer, Ron Cooper.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=QHPKPLKLHI">more..</a>]--><br>
<a href="http://www.relera.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.relera.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwHHHHQJKLHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Bush to Nominate Founder of Trident Capital as Envoy to EU</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=HHHHQJKLHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">WASHINGTON -- President Bush is expected to nominate Rockwell Schnabel, founder and managing director of Trident Capital, as the U.S. envoy to the European Union (EU), according to Mr. Schnabel.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=HHHHQJKLHI">more..</a>]--><br>
<a href="http://www.tridentcap.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.tridentcap.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNKNOONKLHI"><b><font face="verdana, arial, geneva, helvetica" size="2">EWingz Systems Caps $3.5M Series A, Acquires Quios</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NKNOONKLHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SAN FRANCISCO -- eWingz Systems, which provides high-quality, cross-carrier SMS services, said it raised $3.5 million in its Series A from sole investor Draper Fisher Jurvetson, to be used for operations. eWingz also said it acquired the key assets of Quios in May. Quios, a mobile instant-messaging services provider that was also backed by Draper Fisher Jurvetson, filed for Chapter 7 in March. Terms of the deal were not disclosed.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=NKNOONKLHI">more..</a>]--><br>
<a href="http://www.quios.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.quios.com</font></a>
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	<font face="verdana, verdana, arial, geneva, helvetica" SIZE=2 color="black"><b>UPCOMING EVENTS</b></font>

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November 7 & 8<BR>New York, NY<BR></font>
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In June, over 750 people attended Enterprise Outlook West in San Francisco and because of that conference's great success we are now bringing it east to New York City. Scores of new companies are jockeying for position in the growing markets for Web services, application integration, collaboration, and other business-critical areas.<a href='http://secure.technologicpartners.com/eoregister.asp'> Register today,</a> save $300.</font>





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    	<a href="http://venturewire.com/index.asp"><font face="verdana, verdana, arial, geneva, helvetica" SIZE=2 color="black"><b>VENTUREWIRE INDEX</b></font></a>
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    	<font face="verdana, arial, geneva, helvetica" size="1" color="gray">577.0 &nbsp; -3.69%</font>
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	<TABLE BGCOLOR="#eeeeee"><TR><TD><PRE>Here they come again!-Mike Homer, Steve Kirsch, Frank
Moss-back in the startup trenches. And back at our
conferences.

Mike, Steve, and Frank have pitched their companies at
our previous Outlook conferences, and they're all
returning in new roles at this year's Internet Outlook.
Mike, formerly of Apple, Netscape, and GO, and a board
member at Palm and Tivo, has just launched Kontiki,
which aims to make the Web faster for all of us. Steve,
founder of Infoseek and Frame Technology, is now at the
helm of Propel, the scalable data management software
provider. Frank, who helped steer Tivoli Systems for
six years, has co-founded Bowstreet, which strives to
make it easier to do business online.

And they are only three of 97 carefully selected
entrepreneurs scheduled to present at Internet Outlook
on September 10 & 11 at the San Francisco Airport
Marriott. Register today at:
	<a target= "_new" href="http://venturewire.com/ads/ad.asp?id=1206">&nbsp;http://www.internetoutlook.net</a></PRE></TD></TR></TABLE>
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	<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwIHLMJJKLHI"><b><font face="verdana, arial, geneva, helvetica" size="2">eAccess to Close More than $76 Million in Series C</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=IHLMJJKLHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">TOKYO -- eAccess, a provider of broadband Internet access, said it will close JPY 9 billion to JPY 10 billion ($76 million to $119 million) in a Series C private placement this month from Asahi Mutual Life Insurance, The Carlyle Group, CDIB, Goldman Sachs, HSBC Technology Fund, Japan Telecom, Morgan Stanley, Nissho Electronics, Premier Ventures, Sumitomo Trading, Sycamore Ventures, and other undisclosed investors. Funds will be used for expanding the firm&#39;s DSL service and backbone networks.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=IHLMJJKLHI">more..</a>]--><br>
<a href="http://www.eaccess.net" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.eaccess.net</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNKLJHQJLHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Metal Press Firm Metalforming Controls Gets $1.35M Series A</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NKLJHQJLHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">CHICAGO -- Metalforming Controls, which develops metal stamping presses designed to increase productivity in automobile production, among other things, and reduce shock during the metal forming process, said it raised $1.35 million in its Series A from Aavin Venture Capital and Prairie Angels. The company said it would use the money for operating capital.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=NKLJHQJLHI">more..</a>]--><br>
<a href="http://www.prairieangels.org" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.prairieangels.org</font></a>
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<TABLE BGCOLOR="#eeeeee"><TR><TD><PRE>Saving Costs via Optics

With capital scarce and bandwidth aplenty, optical
components manufacturers face tough market conditions.
Now, systems companies are focusing on reducing costs
and helping carriers do more with the capacity they
already have. Happily, a number of optical technology
companies appear well positioned to capitalize on this
trend. At Optical Portfolio, you&#39;ll hear from startups
such as Symmorphix, Telephotonics, Pine Photonics, and
Proximion Fiber Optics, which are using integration,
tunability, and real-time network monitoring to create
more intelligent and efficient optical networks.

VentureWire Optical Portfolio, Boston Marriott Cambridge,
October 24 & 25. Register by September 14 and SAVE $200:<br><A target= "_new" href="http://venturewire.com/ads/ad.asp?id=1207">http://www.opticalportfolio.com</a></PRE></TD></TR></TABLE><br>

<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwLNPNHPKLHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Security Firm Entercept Inks Co-branding Deal with Cisco</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=LNPNHPKLHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SAN JOSE, CALIF. -- Entercept Security Technologies, a developer of server security products, said it has entered into a co-branding agreement with Cisco. The co-branded product, Cisco&#39;s IDS Host Sensor powered by Entercept, will be based on Entercept&#39;s standard and Web server editions.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=LNPNHPKLHI">more..</a>]--><br>
<a href="http://www.entercept.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.entercept.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwMJHKINKLHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Japan&#39;s METI to Launch $16.6 Million Fund  for Start-ups</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=MJHKINKLHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">NEW YORK -- Japan&#39;s Ministry of Economy, Trade, and Industry has announced plans to establish a $16.6-million fund next year to assist university professors in establishing startup companies.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=MJHKINKLHI">more..</a>]--><br>
<a href="http://www.dbj.go.jp" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.dbj.go.jp</font></a>
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	<TABLE BGCOLOR="#eeeeee"><TR><TD><PRE>When Corporate and Venture Worlds Collide
VentureWire Breakfast Briefing - San Mateo, CA, Sept. 19

Innovative companies such as Eastman Chemical have led
the charge in using venturing to spur corporate
transformation and create long-term value. Learn how
corporate and private VCs can work together to create
profitable, sustainable investment strategies.  What
are some examples of corporations and VCs working
together to build companies? How can you balance
strategic vs. financial value? How can you prove value
despite sagging returns? Mark Klopp, managing director,
Eastman Ventures, Eastman Chemical Co. shares his
thoughts on aligning investment strategies to drive
innovation and generate returns.
	<A target= "_new" href="http://venturewire.com/ads/ad.asp?id=1208">http://events.venturewire.com/briefingEvent.asp</a></PRE></TD></TR></TABLE>
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