July 27, 2006
Intelleflex Corporation Secures $15.5 Million in Series B Funding

Intelleflex Corporation, “The Intelligent RFID Platform Company,” today announced the closing of a $15.5 million round of equity funding. This Series B round was led by Morgenthaler Ventures, and was over-subscribed, with continuing participation by Series A investors Woodside Fund, Alloy Ventures and Selby Venture Partners. Proceeds from this round will be used to ramp production, extend the company’s line of high performance RFID tags and readers and expand the company’s go-to-market capabilities. Intelleflex products enable critical applications including asset management, yard operations, manufacturing WIP, supply chain and security / access control.

“We are very pleased to add Morgenthaler Ventures to our investor group,” said Richard Bravman, Chairman and CEO of Intelleflex Corporation, “and delighted that Bob Pavey, their Managing Partner, will be joining our board. We are convinced that the Company is powerfully positioned to emerge as a leader in the RFID space. The experience, relationship network and resources that Bob and Morgenthaler bring to our team will certainly play a major role in our future success. The ongoing support of all our Series A investors, who have contributed so importantly to our progress to date, is of course gratifying.”

The $11.3 million Intelleflex had raised in its A round was used to develop the industry’s first fully integrated multi-protocol EPC-compliant RFID single chip IC. In their battery-assisted passive mode of operation, the tags built around this chip offer operating ranges in excess of 100 meters, robust performance in difficult RF conditions and an extended feature set including 64k bits of user read / write memory. Together with the Company’s multi-protocol reader, they comprise an intelligent RFID platform with unprecedented capabilities and value.

First customer shipments of this initial product set will take place in late 3Q 2006, with ramp to full production and general availability in the fourth quarter. Boeing has already chosen the Intelleflex IC as the RFID platform for the “smart labels” to be placed on maintenance-significant parts of its next generation 787 Dreamliner.

“We’re very excited about Intelleflex’s prospects,” said Bob Pavey. “The company has great technology, a very experienced team with proven executive leadership, a winning strategy and strong early momentum. I’m confident in the Company’s ability to shape and lead in the growth of what promises to become a multi-billion dollar industry, and pleased that Morgenthaler will be able to contribute to that enterprise.”