Foundation Capital Leads Investment with Participation from Institutional Venture Partners and In-Q-Tel

February 18, 2004
Berkeley, CA

Dust  Incorporated (www.dust-inc.com), the leader in low-power wireless mesh sensor  networks, raised a total of $7 million.  The Series A round was led by Foundation Capital, with participation  from Institutional Venture Partners (IVP) and In-Q-Tel.

The  company's technology is based on more than 10 years of UC Berkeley research  into wireless sensing solutions. In 1997, Dr. Kris Pister, PhD., now Dust CEO  and founder, led an ambitious project at the University of California Berkeley  to develop a complete autonomous sensing and communication package in a cubic  millimeter-sized device with a sensor, coined Smart Dust.

Since  then, multiple generations of Smart Dust hardware and software have been  developed, tested and refined. As the world's experts in wireless mesh  networking and low-power systems, the Dust team is leveraging a tradition of  innovative research and experience in bringing new technologies to markets to  commercialize low-powered, robust wireless sensing networks in building  automation, industrial monitoring and homeland security applications.

"Dust  promises full access to information by bringing together the ease of wireless  systems with the inherent robustness of mesh networks," said Paul Koontz,  General Partner at Foundation Capital. "There is broad agreement that the  expense and complication of current network technologies has limited data  collection applications. By dramatically lowering the cost of networking  infrastructure, Dust technology will open up applications that dramatically  increase our ability to gather and utilize data in industrial and commercial  environments."

"Dust  brings a revolutionary wireless sensing platform that resonates across a wide  range of customers," said Reid Dennis at IVP. "At IVP, we look for  home-run potential in large and growing markets, and we see a grand slam  opportunity in Dust. The Dust team has the vision, the technology, and the  experience to bring highly innovative technology to market and solve critical  business problems."

"Kris Pister is known as the most aggressive technologist in wireless sensor  platforms, pushing for extremely low-power and reliable networks," said  Gilman Louie, CEO of In-Q-Tel. "Dust's low cost, low energy, miniaturized  solution makes possible new applications that were never before feasible. For  people who want to know more about the environment, Dust is the indispensable  piece of the solution, be it for situational awareness in an office building or  a government application."

"We  are extremely pleased to gain the support of top-tier venture investors,  Foundation Capital, IVP, and In-Q-Tel," said Kris Pister, Dust CEO and  founder. "Dust helps customers achieve visibility and control critical to  their success. The backing and support of our investors will allow Dust to  continue leading the next wave of the information revolution."

About Dust
Based  in Berkeley, California, Dust develops hardware and software for low-power  wireless mesh networks. Dust networks enable reliable, unattended monitoring of  critical processes and assets. Patent pending mesh networking software teamed  with battery-powered wireless communication nodes, form a resilient,  self-healing network that can operate with zero maintenance for years at a time  on standard AAA or coin cell batteries. Unlike traditional wired control  systems, Dust networks require no cable runs for power or data communication ‚Äî  greatly reducing the cost and complexity of connecting, maintaining and  retrofitting installed sensors and actuators. Dust brings reliable,  comprehensive monitoring and control within reach, enabling more informed  decision making and better process control. For more information please visit www.dust-inc.com.

About Foundation Capital
Founded  in 1995, Foundation Capital is a venture capital firm committed to supporting  entrepreneurs and their companies, targeting innovative opportunities in  telecommunications and networking; Internet infrastructure; and enterprise  software. Foundation Capital funds total over $1.1 billion and include Harvard,  Yale, CalTech, the Hewlett Foundation and MacArthur Foundation as investors.  Paul Koontz is a general partner and also led investments in, and serves on the  boards of, United Online, Financial Engines, Apexon, Oberon Financial  Technology, Pacific Edge, Vivecon and CloudShield. He also serves on the board  of the Stanford University DAPER Fund. For more information, visit www.foundationcapital.com or  contact: Tim Turpin (415) 392-8282, tim@outcastpr.com.

About Institutional Venture  Partners
IVP  was founded in 1980 and manages over $1.3 billion of committed capital.  Throughout its history, IVP's partnership with innovative companies has led to  the creation of market leaders in technology industries such as enterprise  software, wireless infrastructure, communications equipment, semiconductors,  storage and technology-enabled services. The firm has financed over 200  companies and recorded more than 80 IPOs.  IVP is currently investing IVP X, a $225 million expansion-stage venture  capital fund. IVP's website is located  at www.ivp.com.