PRESS RELEASE:

Bay Area Companies Awarded $1 Million Plus in State Matching Funds

(Newark, CA) - BARTA announced today the Governor's Technology, Trade & Commerce Agency approved more than $1 million in new state funding for seven Bay Area high-tech businesses. According to BARTA President Judith Pacult, funds provided by the Division of Science, Technology and Innovation's CalTIP program will go to companies in Fremont, San Jose, Los Gatos, Hayward, Mountain View, Palo Alto, and Redwood City.

"CalTIP provides more than financial support for high tech start-ups" said Pacult. " BARTA supports commercialization of technologies with the greatest market potential. We peer review CalTIP grant proposals for technical merit, sound management, and market potential. Federal agencies consider our recommendations when making awards, and a positive recommendation from BARTA and the state can move a proposal to the top of a federal agency's funding list. Those funds create jobs and contribute to Northern California?s regional economic development."

Most federal programs providing R&D funding require recipients to share project costs. CalTIP funds can be used for this cost match, contributing up to one-fourth of the total project cost. Since BARTA started in 1994, 63 Bay Area businesses (including this year's awardees) have received state grants totaling more than $11.7 Million, and nearly three times more in federal R&D support.

Bay Area businesses submitted proposals to BARTA for CalTIP in March 2001. Twenty-five proposals were evaluated by BARTA's Technology Advisory Committee, a panel of Bay Area based experts drawn from business, finance, academe and government research institutions. Their recommendations and proposals from other California regions were submitted to the state for approval. One hundred fifty-one proposals were reviewed, and 25 recommended for awards totaling $4 million.

The approved proposals span a wide range of technologies, including biotech, software, transportation, and semiconductor manufacturing. Northern California companies receiving awards this year are located in Alameda and Santa Clara counties. Most are small businesses (fewer than 500 employees). "Small, high-tech businesses are the growth engine in our economy", Pacult said. "They create new jobs, launching innovative products and industries. We're applying our funds at the point of maximum leverage."

Companies qualifying for year 2001 awards are:

• NanoNexus, Inc. (Fremont), Nanospring Collaborative Design & Data Environment
• Immersion Corp. (San Jose), Smart Instrument Controls with Feel Display
• Quantum Dot Corp. (Hayward), Multiplexed Assays for Detection of Breast Cancer Markers
• Seagull Technology, Inc. (Los Gatos), Small Airport Automation System
• Extempo (Redwood City), Commercializing Adaptive Learning Guide
• 3DGeo Inc. (Mountain View), Collaborative Internet Seismic Processing
• Phifer Smith Corp. (Palo Alto), Photoresist Stripping Process for Electronic Manufacturing BARTA supports technology-based business growth in the Bay Area. Established with funding from the California Technology, Trade and Commerce Agency,

BARTA is sponsored by the East Bay Economic Development Alliance for Business (EDAB) and the Bay Area Economic Forum. BARTA provides consulting and access to capital for emerging, high-tech companies. For more information about BARTA programs, go online to http://www.barta.org.