VIDSYS ANNOUNCES $10 MILLION ROUND OF FUNDING

Series B Financing from Motorola, Inc. and IDG Ventures Boston Supports Momentum for Newly-Established Physical Security Information Management Market

VIENNA, Va. and MARLBOROUGH, Mass. - May 21, 2007 -VidSys, the leading provider of Physical Security Information Management (PSIM) solutions for safety, security, commercial, surveillance, military and transportation organizations, today announced it has secured $10 million in Series B funding. New investor Motorola, Inc. through Motorola Ventures, its strategic venture capital arm, participated in the round with existing investor IDG Ventures Boston. The funding will be used for sales, marketing and product development initiatives to support growing customer demand in the PSIM market.

An emerging technology category in the Physical Security market, PSIM is the marriage of video management for security and surveillance applications with situation management (incident and event). This combination enables security personnel in operations centers to more efficiently manage situations or events, and not the underlying systems and technology. VidSys recently announced VidShield 4.0, the most recent version of its PSIM platform, and has a strong customer base developed through its direct and indirect sales channels including the City of Chicago, Metropolitan Washington Airports Authority, and Texas Department of Transportation. VidSys also announced a new customer milestone today with the California Department of Transportation (Caltrans) (see today’s release, “California Department of Transportation (Caltrans) District 4 Surpasses Seven Years of Operation Using VidSys Management Software,” for more details).

“There is a need for a stronger convergence of physical and IT security assets in order to provide better response to public safety incidents and threats,” said Reese Schroeder, managing director, Motorola Ventures. “With a proven technology and an experienced management team, VidSys is well-positioned to help operations centers glean more intelligence from their security technologies and existing infrastructure to improve incident management.”

“Security command and control centers that focus on protecting critical physical and IT infrastructure for private enterprises as well as federal, state and local governments are increasingly looking to PSIM solutions to achieve true situational awareness across their organizations,” said Chuck Teubner, CEO, VidSys. “Support by IDG Ventures and new investor Motorola further validates the PSIM market. This new round of funding will further strengthen our delivery of innovative new solutions that enable the convergence of physical security networks.”

VidSys and the Emerging PSIM Market

By enabling the integration of multiple, often siloed products and systems, including various video protocols and formats, into a single seamless management platform, VidSys’ VidShield allows security personnel in operations centers to better manage, analyze and correlate data from both physical and IT security sources to secure people, property and assets more effectively. VidShield is a scalable, standards-based platform with an open architecture that leverages existing technology and integrates data from any detection, monitoring or control system. Additionally, its hybrid design supports both analog and digital video technology and provides automated tools to achieve real-time data analysis.

4A International projects the overall security technologies market will reach approximately $70 billion globally, rising 15 percent annually. These technologies include video surveillance, detectors, alarm monitoring equipment, fire monitoring equipment, biometrics access, electronic surveillance, bar code scanning, RFID and armoring, among others. The PSIM market potential is estimated at 10-15 percent of this total number, or approximately $10 billion by 2012. It is estimated that revenues from independent software vendors (ISVs) in the PSIM space will begin as a small fraction of total PSIM revenue, tripling in 2008 and each year following.

“Organizations today are actively seeking a more cohesive view of security in order to make smarter and quicker decisions during important security events,” said Steve Hunt, founder, 4A International. “VidSys provides standards-based tools enabling faster and more effective security response.”

About Motorola

Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of seamless mobility, the people of Motorola are committed to helping you connect simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $42.9 billion in 2006. For more information about our company, our people and our innovations, please visit http://www.Motorola.com

About IDG Ventures Boston

IDG Ventures Boston is an early-stage venture capital firm that enables entrepreneurs to grow innovative, global companies. With $280 million under management, the firm is focused on investing in consumer, life sciences, and information technology companies and is led by a team with more than half a century of combined experience in venture capital. IDG Ventures Boston is affiliated with the IDG Ventures network of funds, a global network of independently managed funds spanning Asia and North America which manages $1.5 billion

About VidSys

VidSys is a leading provider of Physical Security Information Management (PSIM) solutions and the only operations center software company that provides truly collaborative situational awareness for safety, security, military and transportation organizations. The VidSys platform is based on an open, hybrid architecture that integrates data from any video source, as well as any detection, monitoring or control system, allowing public safety and security personnel to focus on awareness, assessment and action. Founded in 2005, the company’s solutions are deployed in transportation, federal government, enterprise and state and local government applications, including some of the largest state and city command and control centers in the U.S. Privately funded by IDG Ventures Boston, the company has offices in Marlborough, Massachusetts and Vienna, Virginia. For more information, visit www.vidsys.com.

Media contact:

Lorena Magali

703.883.3737

magalil@vidsys.com

 

Liz Campbell
617.758.4149
vidsys@famapr.com