Convera Corporation, a provider of search and categorization software for enterprises and government agencies, has announced the company has completed a private placement of 3,433,332 newly-issued shares of common stock to several investors, including affiliates of Allen & Company Incorporated, a stockholder of the company, and certain directors. The shares were priced on September 7, 2004 at $3.00 per share, representing a premium to the $2.80 closing market price on such date, and are subject to a six-month lock-up. The private placement resulted in gross proceeds of $10.3 million. Convera intends to use the proceeds from this private placement for general corporate purposes, including potential acquisitions.