X0202 4 2004-06-29 0 0001097641 724 SOLUTIONS INC SVNX 0001250035 AV PARTNERS VIII LP 300 WEST SIXTH STREET SUITE 2300 AUSTIN TX 78701 0 0 1 0 0001136038 AUSTIN VENTURES VIII LP 300 WEST SIXTH STREET SUITE 2300 AUSTIN TX 78701 0 0 1 0 0001278614 PACITTI CHRISTOPHER A 300 WEST SIXTH STREET SUITE 2300 AUSTIN TX 78701 0 0 1 0 Secured Convertible Promissory Note 3.07 2004-06-29 4 P 0 1484891 4558617.22 A 2004-06-29 2007-05-14 Common Shares 1484891 2397229 I see footnote Shares are held directly by Austin Ventures VIII, L.P. ("Austin VIII"). AV Partners VIII, L.P. ("AVP VIII"), the general partner of Austin VIII, and Joseph C. Aragona, Kenneth P. DeAngelis, Christopher A. Pacitti, Edward E. Olkkola, John D. Thornton and Blaine F. Wesner, the general partners of AVP VIII, may be deemed to share voting and dispositive power over the shares held by Austin VIII. Such persons and entities disclaim beneficial ownership of shares held by Austin VIII except to the extent of any pecuniary interest therein. Joseph C. Aragona is a director of the issuer, and Joseph C. Aragona, Kenneth P. DeAngelis, Jeffery C. Garvey, Edward E. Olkkola, John D. Thornton and Blaine F. Wesner are general partners of AV Partners VI, L.P., which serves as the general partner of both Austin Ventures VI, L.P. and Austin Ventures VI Affiliates Fund, L.P. In addition, Joseph C. Aragona, Kenneth P. DeAngelis, Christopher A. Pacitti, Edward E. Olkkola, John D. Thornton and Blaine F. Wesner are general partners of AV Partners VIII, L.P., which serves as the general partner of Austin Ventures VIII, L.P. Each Reporting Person disclaims the existence of a "group" and disclaims beneficial ownership of any securities (except to the extent of such Reporting Person's pecuniary interest in such securities) other than any securities reported herein as being directly owned by such Reporting Person, and this report shall not be deemed an admission that such Reporting Person is the beneficial owner of any securities for purposes of Section 16 or for any other purpose. This report is one of two reports, each on a separate Form 4 but relating to the same transaction, being filed by the Reporting Persons listed on Exhibit 99.1. /s/ Kevin Kunz, attorney-in-fact for AV Partners, VIII, L.P. 2004-07-01