Kilopass Technology Inc. Closes Second Round of Venture Capital Funding

U.S. Venture Partners Joins Prior Investors BlueRun Ventures, iGlobe Partners

Kilopass Technology Inc., a provider of embedded non-volatile memory (NVM) intellectual property (IP), announced today the successful conclusion of its second round of venture capital funding from U.S. Venture Partners (USVP), BlueRun Ventures and iGlobe Partners. This round of funding for $8.8 million will enable the company to further develop the performance and features of its low-cost secure embedded memory technology and continue to expand its market presence.

"Kilopass Technology has made tremendous progress since our original round of VC funding in 2002," said Bernie Aronson, CEO of Kilopass Technology. "We have seen increased awareness and adoption of our XPM technology in a wide variety of applications, often replacing other types of non-volatile memory for cost or security reasons. We welcome U.S. Venture Partners as an investment partner and appreciate their extensive experience in the semiconductor markets that Kilopass targets."

"We have been impressed with the progress Kilopass Technology has made to date," said Dr. Arati Prabhakar, Partner at U.S. Venture Partners. "The company is in a position to make a significant impact in the communications, consumer and computer marketplaces with a technology that gives its customers significant cost and product-differentiation advantages."

Jui Tan, Partner at BlueRun Ventures, noted "Kilopass has achieved a lot with the initial investment they received from BlueRun. The company has successfully qualified and delivered the non-volatile memory technology to multiple leading customers, received 11 patents, and gained acceptance by the world's leading foundries."

Kilopass Technology was founded to develop and market advanced NVM technology leveraging only standard CMOS logic processes. It is silicon proven to deliver high-density, low-cost storage solutions with the most advanced process technologies. With an impressive list of customers and a strong research and development team, the company is committed to maintaining its lead in the embedded NVM space.

About Kilopass Technology Inc.

Kilopass Technology Inc. was founded in 2001 with the mission to become the industry leader in embedded non-volatile memory technology (NVM). Kilopass Technology's Super Permanent Memory (XPM) technology can be manufactured using standard commercial CMOS processes without any modification. It can be used in a wide range of storage-capacity applications, ranging from a few bits to multiple megabits. In addition, XPM can be scaled to advanced process technologies, such as 130 and 90 nanometers. XPM is an excellent solution for electrically field-programmable code storage, embedded security keys, and IC configuration parameters. Kilopass Technology's XPM products are targeted to the advanced Customer Owned Tooling (COT) and Application Specific Integrated Circuit (ASIC) markets and are available for leading foundries and process geometries. For more information call 408-980-8808 or visit http://www.kilopass.com.

About U.S. Venture Partners (http://www.usvp.com)

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. Since inception in 1981, USVP has raised $2.8 billion in nine funds, including a $600 million fund that closed in October 2004. To date, over $1.8 billion has been invested in more than 370 companies.

About BlueRun Ventures (http://www.brv.com)

Launched in 1998, BlueRun Ventures is a leading early stage venture capital fund. BlueRun Ventures' proven approach is to invest globally as a single fund in best of breed technologies and teams with the drive and ability to build leading global companies. BlueRun Ventures is headquartered in Menlo Park, California, with offices in Helsinki, Herzelia (Israel), London, New Delhi, Seoul, Shanghai, Tokyo, and Washington, D.C.

About iGlobe Partners, Inc. (http://www.iglobepartners.com)

iGlobe Partners is an independent transpacific venture capital firm with presence in Silicon Valley, Singapore & Shanghai. The team at iGlobe comprises seasoned investment professionals with strong track records and rich cross border operational experience. We seek investments in globally scaleable businesses anchored upon differentiated technology which are led by passionate management. iGlobe adopts a hands-on approach building superior global market value for our portfolio companies, delivering superior returns to our investors.

XPM is a trademark of Kilopass Technology, Inc. All other trademarks and tradenames are the property of their respective owners.

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