Ontool.com Secures Second Round of Financing; Sales Continue to Grow in Spite of Worsening Economy

    SUNNYVALE, Calif.--July 30, 2001--Ontool Inc., the market leader in the Internet distribution channel for professional automotive tools and equipment, today announced that it has closed its second round of financing. Founded in early 2000, the company now markets the products of over 300 brand-name manufacturers like SPX, Waterloo and Midtronics.
    "At our present rate of growth, this round of financing should take us well into the future, if not to profitability," said A. J. Zack, Ontool's CEO and president. "In spite of the worsening economy and the slump in other channels, our sales continue to grow every month."
    "With virtually all other companies in the $11 billion automotive tool and equipment industry reporting significant sales declines, Ontool's success is exceptional," said Bill Hambrecht, chairman and CEO of W.R. Hambrecht + Co., an investor in both financings. "It is a testament to Tony and the Ontool team that they have been able to execute their plan in such a tough environment."
    According to Mark Alloy, Ontool's CFO, the worsening economy is playing a role in the company's continued growth. "As the economy slows down, the cost efficiencies of the Internet channel are working to our customer's advantage. Now, every dollar our customers can save is a much more important factor in their buying decisions," said Alloy. "In addition to 220,000 repair shops, more than 1.2 million professional technicians purchase their own tools and equipment. Our customers are for the most part highly technical and are becoming very comfortable with buying via our Internet channel, as shown by the significant increase in repeat sales we're seeing."
    Ontool streamlines the process of locating and ordering tools and equipment for automotive service professionals and weekend do-it-yourselfer (DIYer) mechanics. In addition to its online retailing, through partnership agreements Ontool also provides the tool and equipment product catalog on many of the other most-visited automotive websites, including Carparts.com, Expressautoparts.com and Wrenchead.com. Ontool also offers a range of special purchase programs for independent tool jobbers, industry associations, and schools and colleges.
    Headquartered in California's Silicon Valley, Ontool was founded by a group of automotive tool and equipment and software development industry veterans, all with successful track records. The company is funded by W.R. Hambrecht + Co. and J.F. Shea Ventures, two of the leading venture capital companies in the hi-tech industry, along with other investors. More information about the company can be found at www.ontool.com.