SOURCE: EPOS

November 13, 2006 10:55 ET

EPOS Technologies Secures $10.5 Million in Financing

Round Led by Intel Capital and Walden Israel

NEW YORK, NY -- (MARKET WIRE) -- November 13, 2006 -- EPOS, a provider of advanced digital positioning technology, today announced that it has secured U.S. $10.5 million in funding. The round was led by Intel Capital and Walden Israel with participation by JVP and additional investors.

"We are pleased to bring together a strong funding consortium comprised of prominent venture capitalists such as Intel Capital, Walden Israel and JVP," said Oded Turbahn, CEO of EPOS. "Their participation strengthens our vision of positioning-enabled products within a wide range of markets."

"EPOS' digitization of the acoustic signal allows for positioning solutions that are low-cost and low-power without sacrificing high resolution," said Steve Gray, Senior Investment Manager of Intel Capital Israel. "These are characteristics of digital positioning that could finally pave the way to broad consumer acceptance in a wide variety of applications."

EPOS' advanced digital positioning technology enables a number of consumer electronics products in the input device, touch-screen and notebook markets, among other industries. The company works closely with various consumer electronics companies and partners to transform core EPOS technology into mass market commercial products. Products and solutions that can benefit from EPOS positioning technology include wireless digital pen and mouse peripherals, digital pen and USB flash drive bundles and notebook touch-screens.

"The EPOS platform was particularly attractive to Walden Israel as it is easily integrated into a wide range of products for a diverse number of markets," explained Noga Kap, General Partner at Walden Israel. "We look forward to seeing EPOS' positioning technology quickly making its mark -- initially within the consumer electronics arena, particularly with products such as digital pens and accessories, touch screens for notebooks and interactive whiteboards, with future products already planned to include LASIK surgery and wireless gaming peripherals."

Gadi Tirosh, Venture Partner at JVP commented: "We are pleased to join forces with Intel and Walden Israel and look forward to seeing the company continue to grow as it moves into this next important phase."

EPOS will use the funds from this financing round to continue research and development, expand global marketing activities and launch future EPOS-enabled products via its partners. EPOS' business partners have plans to bring EPOS-enabled products to the marketplace as early as Christmas 2006.

About EPOS

EPOS (www.epos-ps.com) is a leading provider of advanced digital positioning technology. Together with its partners, the company brings next-generation, positioning-based consumer electronics products to the input device, touch-screen and interactive whiteboard markets, among others. Customers and partners include recognized consumer electronics brands and companies.

EPOS is located in Israel. The company also has representatives throughout the US, UK and Japan.

About Intel Capital

Intel Capital, Intel's venture capital organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software and services targeting enterprise, home, mobility, health, consumer Internet and semiconductor manufacturing. Since 1991, Intel Capital has invested more than US$4 billion in more than 1,000 companies spanning more than 30 countries. During this time, about 160 portfolio companies have been acquired and another 150 have gone public on exchanges around the world. In 2005, Intel Capital invested about US$265 million in about 140 deals with approximately 60 percent of funds invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.

About Walden Israel

Walden Israel is one of Israel's leading early-stage technology venture funds, operating in Israel since 1993. Walden Israel manages three focused funds concentrating in the communications and information technology markets. The fund is managed by experienced technology entrepreneurs and has backed more than 40 Israeli start-ups to date. Walden Israel's exits in 2006 include: Passave (acquired by PMC-Sierra, Inc. (NASDAQ: PMCS); nLayers (acquired by EMC, Inc. (NYSE: EMC); and Ex Libris (acquired by Francisco Partners).

For additional information about Walden Israel, please see: www.walden.co.il.

About JVP

JVP is a leading Israeli venture capital firm focusing on investments in early stage companies in the media technologies & enterprise software, semiconductors & innovative materials and communications & networking sectors. With over $680 million under management, and offices in Jerusalem, New York, London, Tokyo and Shanghai, JVP leverages its international presence, vast expertise and substantial capital base to build companies with the potential to shape and dominate global markets. To learn more about JVP, visit www.jvpvc.com

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