NanoOpto Announces Closing on $12M of C-Round Venture Financing; New Capital Will Support Production Ramp and New Product Introduction for Consumer Electronics and Communications Markets

Business Wire, March 22, 2005

SOMERSET, N.J. -- NanoOpto Corporation, who is applying novel design methods and proprietary nano-fabrication technology to produce a broad range of unique optical components that enable higher quality, low-cost optical components and systems, announced that it has closed on $12 million in Series C round venture financing. First Analysis, a leading private growth-equity investor, is leading the round. Existing equity partners joining in the round are Morgenthaler Ventures; the Draper Fisher Jurvetson (DFJ) network (including DFJ Gotham Ventures and New England Ventures); Harris & Harris Group; and U.S. Trust's Excelsior Venture Partners III, L.L.C. The total financing raised by NanoOpto to date is $42.3 million.

"The combination of high-growth markets, novel technology and products, and a proven team makes NanoOpto an exciting investment opportunity for First Analysis," said Tracy Marshbanks, Vice President and General Partner specializing in advanced materials investments at First Analysis. "We look forward to assisting in the next phase of NanoOpto's growth with its focus on high-volume commercialization and continuing product innovation."

"Over the past four years, NanoOpto has evolved from a nascent technology platform to shipping real products to customers in real markets," said Greg Blonder, General Partner at Morgenthaler Ventures. "Morgenthaler and the other existing investors recognize the successful progress and accomplishments made by the NanoOpto team, and are pleased to support the continued growth of the company."

"NanoOpto is now in volume production, shipping its unique optical devices to a broad range of markets, including optical disk drives, digital imaging, projection displays, and communications," says Barry Weinbaum, President and CEO of NanoOpto Corporation. "At this important juncture in our company's development, we are pleased to add First Analysis to our group of investors."

So far in 2005, NanoOpto has announced a range of new product offerings: IR cut-off filters for digital imaging applications, waveplates for optical data storage applications, and optical isolators for communications transceivers. These products are realizations of NanoOpto's general product capabilities that span polarizers, phase retarders, filters, dynamic optics, and their integration with other optical devices, and into optical systems, utilizing UV, visible, and IR wavelengths.

About NanoOpto

NanoOpto Corporation is applying proprietary nano-fabrication technology to the rapid design and high-volume manufacture of nano-optic devices for optical components and systems. The company's nano-meter scale optical function design capability combined with wafer-based manufacturing methods delivers optical components that allow more rapid prototyping, higher performance, and lower overall system cost. Both independently and with industry partners, NanoOpto uses its technology to produce superior versions of standard optical components and new classes of integrated optical subassemblies for both custom and general applications. The company has received financial backing from leading venture capitalists and is based in Somerset, N.J. For additional information about NanoOpto, visit www.nanoopto.com.

About First Analysis

First Analysis is a leading private growth-equity investor. It has one of the longest records (20 years) in private capital investing. It has invested over $572 million, has created over $1.38 billion in fund liquidations, and has over $190 million in active portfolio investments and over $100 million to invest in new portfolio companies. First Analysis focuses on its three sectors of expertise: chemistry-enabled businesses, outsourced services, and information technology, investing for expansion and growth in small and mid-size companies with established business models, high internal growth rates, and large-market leadership potential. Its goal is to help these companies establish highly profitable leadership positions in their markets.

About Morgenthaler Ventures

Morgenthaler Ventures, a leading venture capital and buyout firm, was founded in 1968. The firm focuses on early-stage technology investments as well as middle-market management buyouts. It has funded over 180 companies in its 33-year history, including two of the last decade's highest-performing IPOs: Microchip Technology (1993) and Premisys Communications (1995). Current representative portfolio investments in communications include optical and wireless components companies such as Agility Communications, Lightwave Microsystems, and Peregrine Semiconductor, as well as systems companies such as Catena Networks and TimesTen. With its new $850-million fund raised earlier this year, the firm has a total of just under $2 billion under management.

About Draper Fisher Jurvetson Gotham Ventures

Draper Fisher Jurvetson Gotham Ventures is an early-stage information technology venture-capital firm with approximately $100 million of capital under management, focused on investment opportunities in New York and the surrounding regions. The fund is managed by Ross H. Goldstein, Daniel J. Schultz and Charles Meakem, and is an affiliate fund of Draper Fisher Jurvetson, a leading venture capital firm in Silicon Valley.