Laru Corporation Receives Additional Funding from Velocity Venture Capital

Business Wire,  July 15, 2008  

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Increase in Series A Round of Funding Result of Strong Second Quarter

EL DORADO HILLS, Calif. -- Laru Corporation, a provider of Automated Clearing House (ACH) risk and compliance management software applications for financial institutions, today announced Velocity Venture Capital has increased their investment in the company as part of their Series A round of financing.

Velocity Venture Capital, a Sacramento-area based venture capital fund that invests in early stage technology companies, led the initial A round in May of this year. The additional investment was secured as a result of Laru's meeting a number of second quarter financial targets, including revenue, cash flow and new customer goals.

Laru's proprietary solutions offer a fully automated, Web-based platform upon which banks, credit unions and other major financial institutions can rapidly identify, resolve and prevent costly ACH fraud and network violations. The company's products are used by both ACH originating and receiving operations within financial institutions.

"Our Series A round has allowed us to accelerate a number of product development and sales initiatives," said William Vaughan, president and chief executive officer of Laru. "The continued growth in ACH transactions is creating strong market interest and demand for our solutions."

Laru's ACH Clarity and ACH FileFox products complement an institution's core ACH processing system and provide expanded management and control of ACH risk, fraud and network compliance. Domestic ACH origination volumes have been doubling every five years, resulting in increased growth of ACH fraud and network violations and the need for Laru's automated solutions. ACH transaction volume is forecast to grow to 24.5 billion transactions by 2009, from 14.6 billion transactions in 2006, according to a recent report by the Federal Reserve and The Tower Group.

About Laru Corporation

Laru Corporation, headquartered in El Dorado Hills, Calif., is a provider of ACH risk and compliance software applications. Financial institutions, aggregators and corporations use the company's products to identify, resolve and prevent ACH fraud and network violations. Laru's flagship product, ACH Clarity(TM), monitors and manages the risks of originating, receiving and processing ACH transactions, and provides an independent ACH audit platform in accordance with OCC Bulletin 2006-39. For more information call 888-527-8007 or visit the company's Web site at www.larucorp.com.

About Velocity Venture Capital

Velocity invests across all technology sectors in seed stage and re-start deals located in the greater Sacramento region. The firm's unique company-building approach has helped it to build a track record of solid performance. Velocity is currently investing $100,000 to $3 million alongside sophisticated angel investors and top-tier VCs into approximately four to six new portfolio companies each year. For more information, please visit www.velocityvc.com.

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