Mobile Communications Venture Giants Fund I-Control To Usher In The Era Of Personal Digital Security

Campbell, Calif. - September 17, 2002 - I-Control, a Silicon Valley start-up developing a solution that enables secure wireless data communications and strong authentication, announced today that two of the world’s largest wireless communications venture funds, Nokia Venture Partners and Ericsson Venture Partners, are collaborating as lead investors in I-Control’s $12.5 million second round financing. Ericsson Venture Partners is an investment outlet of wireless communications titan L.M. Ericsson of Sweden (NASDAQ: ERICY).

The funding will enable I-Control to bring to market a common authentication solution for a broad range of platforms and devices. The I-Control solution places control of digital IDs, and their authentication, in the hands of end-users and enterprises, rather than relying on an external authentication authority. It enables enterprises and service providers to protect corporate digital assets and personal data while supporting users of laptop computers, personal digital assistants (PDAs), cell phones, and other digital mobile systems.

“The growth of smart devices and secure mobile communications is hindered by the lack of robust authentication solutions,” said J.C. Huang, Managing Director of Ericsson Venture Partners in New York. “We believe I-Control’s Personal Digital Security technology can remove that obstacle.”

According to W. Peter Buhl, Partner at Nokia Venture Partners in Menlo Park, CA, “The industry urgently needs a Personal Digital Security solution that protects digital assets, like valuable corporate and personal information, from unauthenticated access while using a mobile device, whether it is a mobile phone, PDA or laptop.”

“We are pleased that Nokia Venture Partners and Ericsson Venture Partners are assuming the role as lead investors in I-Control. More importantly, we appreciate their affirmation that I-Control’s technology and products will be critical tools in enabling secure mobile data transactions,” stated Anthony G. Bozzini, I-Control’s Chairman and CEO.

Joining Nokia Venture Partners and Ericsson Venture Partners in I-Control’s financing are Acer Technology Ventures and Osprey Ventures. “In addition to the cellular world, we can see I-Control’s Personal Digital Security technology applied to securing mobile PC’s, data peripherals, and Smartcards, as well,” stated James C. Lu, Managing Director of Acer Technology Ventures in Santa Clara, CA.

An emerging leader in mobile authentication, I-Control intends to establish a new mobile security standard. “Such a standard could enable a host of new, secure, data services allowing wireless carriers to provide differentiated offerings that generate the higher per-customer revenues and customer retention they covet,” Bozzini explained.

With the proliferation of intelligent personal devices, such as PDAs, cell phones, laptops, and the like, that can permit wireless access to critical corporate and personal information, stronger authentication and more secure wireless communications are ever more urgent. There is a critical need for stronger authentication technology given that present devices rely almost exclusively on simple passwords.

An End-To-End Solution
I-Control will offer its customers a full end-to-end solution. Its suite of security authentication products will include a small, low-cost semiconductor device with proprietary design and packaging, proprietary algorithms, and enterprise network server software. Founded in 2000, I-Control has applied for over a dozen patents covering its complete end-to-end authentication system, including the sensor’s design and packaging.

In addition to its initial target markets of laptop computers, PDAs and cell phones, other potential applications for I-Control’s technology and products include: personal removable storage on USB (Universal Serial Bus) devices; smart card devices; government security systems; and other small electronic devices.

About I-Control:
Headquartered in Campbell, CA, I-Control was founded to address the absence of secure communications and strong authentication associated with Internet access, particularly when using wireless devices. The company has emerged as the leader in Personal Digital Security, a new class of end-to-end Internet infrastructure that ensures the authenticity, confidentiality and non-repudiation of corporate and personal data and services accessed using mobile communications. I-Control’s elegant solution has been endorsed by investments from Ericsson Venture Partners, Nokia Venture Partners, and Acer Technology Ventures. For more information, visit http://www.icontrolinc.com.

About Ericsson Venture Partners:
Ericsson Venture Partners (EVP) is a $300 million venture capital fund. Its strategy is to achieve attractive financial returns by leading investments, across funding stages, in communications technology companies, with an emphasis on mobile. EVP aligns with the knowledge capital of Ericsson while leveraging the support of its other limited partners: Industrivarden, Investor AB, and Merrill Lynch. EVP focuses on Europe and North America through its offices in New York and London. For more information, see www.evp.com.

About Nokia Venture Partners:
Nokia Venture Partners is a leading global venture capital firm based in Menlo Park, California. Launched in 1998, Nokia Venture Partners has USD$650 million under management and leads investments in early stage mobile technology companies around the world. The fund is backed by a number of value add limited partners and has a strong track record of leveraging its combined resources, experience and contacts to help build successful mobile businesses. The firm also has offices in Washington DC, London, Helsinki, Seoul, Hong Kong and Japan. For more information, visit http://www.nokiaventurepartners.com.

About Acer Technology Ventures:
Acer Technology Ventures is the venture capital arm of the Acer Group, with six offices in Silicon Valley, Taipei, Singapore, Bangalore, Shanghai and Beijing. Currently, Acer Technology Ventures manages $300 million in committed capital. Its current fund, IP Fund One, L.P., consists of limited partners such as J.P. Morgan/Chase, Citibank, ABN AMRO, Nomura/Jafco, Trigem, DBS, GIC, CDIB and some Acer affiliates. The Investment focus of Acer Technology Ventures includes semiconductors, telecommunications, software and other enabling technologies. Further information is available on the Internet at http://www.acervc.com

About Osprey Ventures:
Osprey is a venture capital fund family which invests primarily in early and expansion stage private companies in the technology arena, with a focus on the internet, communications, software and semiconductor sectors. The Fund is optimizing its exclusive, proprietary deal sourcing, due diligence and value creation contacts and techniques to seek income and gain through acquisition, holding and distribution of its portfolio securities. For more information, visit http://www.ospreyventures.com