SOURCE: W5 Networks

October 24, 2005 06:30 ET

W5 Networks Raises $10M in Financing to Commercialize Wireless Applications for Retailers

Thomas Weisel Venture Partners and U.S. Venture Partners Lead Series A Investment

FREMONT, CA -- (MARKET WIRE) -- October 24, 2005 -- W5 Networks, provider of wireless applications for the retail industry, announced today that it has raised $10 million in venture capital. The round was led by Thomas Weisel Venture Partners (TWVP) and U.S. Venture Partners (USVP). The financing will be used to fund development of W5's initial product, an end-to-end Electronic Shelf Label (ESL) system.

The company's technology is based on Chuck Neugebauer's research into radio architectures optimized for retail applications. Chuck Neugebauer, PhD., Founder and CTO, teamed up with retail technology industry veteran Richard White, CEO, to form W5 Networks earlier this year. In conjunction with the financing, W5 added several venture capitalists to its board of directors: Paul Matteucci, Partner, U.S. Venture Partners, Andy Sessions, General Partner, Thomas Weisel Venture Partners and Mangesh Pimpalkhare, Venture Partner, Thomas Weisel Venture Partners.

"W5 promises to unlock higher profits for the supermarket industry and beyond," said Mangesh Pimpalkhare of Thomas Weisel Venture Partners. "Stores are moving toward price optimization strategies, and W5's ESL solution provides a way to implement these strategies." Paul Matteucci of U.S. Venture Partners added, "The retail industry is underserved by technology. W5 addresses this huge market and has the ability to make a dramatic impact on how retailers operate their business."

"The company is very excited to work with the top-tier syndicate of TWVP and USVP. W5 is pleased to have them as investment partners to help us build on our momentum," said Richard White, CEO, W5 Networks.

About W5 Networks

W5 Networks develops wireless applications optimized for the retail industry. Its initial product is an end-to-end Electronic Shelf Label (ESL) solution based on revolutionary radio architecture. The company is headquartered in Fremont, California. For more information, visit www.w5networks.com.

About Thomas Weisel Venture Partners

Thomas Weisel Venture Partners (TWVP) is an early stage venture capital firm that invests in emerging information technology companies. As a partner with a long-term perspective, TWVP plays an active role in helping entrepreneurs turn ideas into sustainable businesses. TWVP portfolio companies benefit from the knowledge, energy and resources of the TWVP team and from TWVP's commitment to working with management to build industry-leading companies. For more information, please visit www.twvp.com.

About U.S. Venture Partners

U.S. Venture Partners (USVP) is a venture capital firm that is dedicated to helping entrepreneurs realize their dreams of building world class companies that are leaders in their industry. We believe deeply in the value created by the entrepreneurial process and in the relentless pursuit of opportunity. We enjoy the challenge of aiming high and believe that by pursuing lofty goals, we will ultimately generate the greatest returns for our investors. For more information, please visit www.usvp.com.

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