WebGen Systems, Inc. raises $9.5 Million in Funding

Cambridge , MA (June 1, 2006) - WebGen Systems Inc., provider of advanced software for energy conservation and control in commercial buildings, announced today that during the second quarter of this year it had secured $9.5 million in funding. New investor Sigma Partners, a leading early-stage venture capital firm, led the round.

“Over the past few years, technology has completely changed the Enterprise Energy Management industry. WebGen has been instrumental in this process; leading the way in the development of said technology, and today with its IUE ® (Intelligent Use of Energy) software, WebGen is positioned as the industry leader in Enterprise Energy Management. Sigma Partners has always looked to invest in companies with such innovative technologies which are positioned to lead the industry forward,” said Robert Davoli, Managing Director, Sigma Partners, “and WebGen Systems is just that company.”

“We are very pleased to be working with the backing and support offered by Sigma Partners.” said Mark Noyes, Chairman and CEO of WebGen Systems, “Their business network and the strategic and tactical guidance will boost our ability to penetrate the marketplace.”

“In today’s world with soaring energy costs and a demand that continues to grow at rates much greater than that of supply, WebGen’s IUE is strategically poised to help businesses understand and control this expense,” continued Mark Noyes, “This industry will continue to grow at an unprecedented rate, and with this round of funding we intend to expand aggressively and capitalize on having a unique technology that can be customized to meet the industries changing needs and demands”.

WebGen’s IUE provides building owners and managers with a predictive, automated enterprise energy management solution that reduces energy costs and improves energy efficiency while maintaining focus on occupant comfort. IUE provides managers with tools that permit them to monitor, forecast, and optimize their energy consumption in real time. The system aggregates all buildings under one umbrella where managers can effectively manage their portfolio utilizing a series of state of the art tools that allows them to conserve scarce energy resources, reduce energy expenditures, and provide detailed accounting of reduced energy use and corresponding dollar savings.

About Sigma Partners
Founded in 1984, Sigma Partners is a leading early-stage venture capital firm. The Sigma team uses their deep operational experience to provide entrepreneurs with practical strategic counsel through every phase of company growth. With over $1.5 billion under management and bicoastal offices, Sigma invests in innovative technology startups across the United States. Some of the market leading companies Sigma has invested in include Clarify, Electronic Arts, Internet Security Systems, Octel, VeriFone, Vignette and Wellfleet. For more information, visit www.sigmapartners.com.

About WebGen Systems, Inc.

Headquartered in Cambridge, Mass., WebGen Systems, Inc. provides advanced software for energy conservation and control in commercial buildings. WebGen combines the highest level of industry expertise with a reliable suite of open-protocol software tools, called IUE™, to provide real-time command of energy use to generate savings. Its system connects all aspects of building energy management to automatically measure, monitor, and control energy consumption - building by building, system by system, meter by meter, and device by device. WebGen offers the most effective Enterprise Energy Management solution on the market today. Additional information can be found on the company website: www.webgensystems.com

Press Contact:

Selly Kruthoffer

WebGen Systems, Inc.

305-377-2923

skruthoffer@webgensystems.com