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Round Led by Intel Capital, Funds Will Accelerate Company's Growth Through Expanding Sales and Marketing Efforts and Enhancing Product Line

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 17, 2006--IntelliVid Corporation, the leader in intelligent video analysis solutions for retail loss prevention, today announced it has received $8 million in Series B funding, bringing the total investment in the company to over $18 million.

The round was led by Intel Capital, with participation from existing investors Flagship Ventures, Egan-Managed Capital and DFJ New England. IntelliVid is using this round of funding to intensify its sales and marketing efforts and accelerate the delivery of expanded features and functionality for its core product, Video Investigator.

IntelliVid enables retailers to leverage their existing video infrastructures to prevent shoplifting and enhance the shopping environment. By enabling retailers to make better use of their video assets, IntelliVid helps its customers reduce theft and increase profits.

"We consistently see a need for the intelligent video analysis capabilities in retail that IntelliVid provides," said Scott Darling, vice president Intel Capital. "The company's rapidly growing worldwide base of blue-chip retail customers speaks volumes about the importance of this solution. We're delighted to be working with IntelliVid."

"With theft losses comparable to profits in the retail industry, IntelliVid provides an extraordinary value proposition to retailers," said William Strecker, partner at Flagship Ventures and chairman of IntelliVid's board of directors. "We're very pleased Intel Capital has come aboard as the lead investor in this round of funding, which will enable the company to rapidly grow to the next level and continue to deliver its innovative solutions to retailers."

Mike Shanahan, managing partner of Egan-Managed Capital, said, "IntelliVid is rapidly proving its value in helping retailers with their loss prevention and operational efforts. It's clear why the company continues to attract so much interest both from the retail market and from a top-flight strategic investor like Intel Capital: solid technology behind a unique solution that is already proving itself more than capable of addressing the market's needs."

"Intel is a well-known force in every market it participates in, including, of course, retail," said Todd Hixon of DFJ New England. "We're excited that Intel Capital has joined with us and the other investors to build upon IntelliVid's early successes and help propel the company to even greater heights. There's no better team of investors for IntelliVid than this one."

Patrick Sobalvarro, president and CEO of IntelliVid, said, "Intel Capital is, quite simply, a great strategic investor for us, and it's particularly gratifying to have its support. Its breadth and depth in the retail space is unmatched, and its participation in this round validates our early success in this market. We look forward to building a relationship with Intel that extends far beyond a financial arrangement: building a strong partnership in technology innovation, in access to intellectual capital and in market penetration and growth. Coupled with the continued support and active involvement of our existing investors, Flagship Ventures, Egan-Managed Capital, and DFJ New England, it is clear that IntelliVid is on track for delivering its leading-edge solutions to a growing base of retail customers."

About Intel Capital

Intel Capital, Intel's venture investment program, focuses on making minority equity investments to grow the Internet economy in support of Intel's strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. Intel Capital has invested more than US$4 billion in approximately 1,000 companies in more than 30 countries since 1991. Since its inception, about 160 portfolio companies have been acquired by other companies and another 150 have gone public on various exchanges around the world. Intel Capital employs investment managers in about 25 countries. Last year alone, Intel Capital invested more than US$130 million in about 110 deals with approximately 40 percent of its investments made outside the United States. For more information, visit .

About Flagship Ventures Flagship Ventures is an early-stage venture capital firm focused on creating, financing, and building companies in the Life Science, Information Technology, and Nanotechnology sectors. Flagship's team of professionals is among the most experienced in the industry and represents a balance of venture capital, corporate executive, and entrepreneurship expertise. Its principals were involved as founders or investors in over 100 firms including: AltaVista, Anesta, Antigenics, Aspect Medical Systems, Astral Point Communications, Celera Genomics, Color Kinetics, Chantry Networks, Cytyc, DataSage, Exact Sciences, IDEXX, PerSeptive Biosystems, Telecorp PCS and TripAdvisor. Headquartered in Cambridge, MA, Flagship Ventures was founded in 1999 and manages approximately $800 million in capital. For more information, visit www.flagshipventures.com.

About Egan-Managed Capital

Egan-Managed Capital is a New England-based venture capital firm that provides funding for early-stage high-technology start-ups. Egan-Managed Capital delivers field-tested strategies, first-hand technology expertise and hands-on management involvement. Some of the region's most successful start-ups have been funded by the firm, including Network Engines, Eprise, Highground Software and NetScout. Founded in 1997, the firm currently manages funds with $233 million in committed capital. For more information on Egan-Managed Capital and its team please visit .

About DFJ New England

Based in Cambridge, Mass., DFJ New England is an early-stage venture capital firm providing expert counsel and financing to emerging companies that display the promise of significant growth and value creation. DFJ New England invests in companies driven by information technology and related disciplines, with emphasis on enterprise software and the building block technologies for computing and communications, bringing to bear both the long experience of its principals and the extensive resources of the DFJ network to help portfolio companies make key decisions and secure customers, partners, executives, and later round financing. DFJ New England is the New England affiliate of Draper Fisher Jurvetson, a top-tier Silicon Valley venture fund known for visionary early-stage investment. For more information, visit

About IntelliVid

IntelliVid provides intelligent video analysis solutions to large retailers faced with profit-consuming shrink. Its Video Investigator software unleashes the full potential of their existing video infrastructure, enabling loss prevention professionals to identify theft incidents quickly, gather critical video evidence and manage case investigations efficiently. Unlike traditional video solutions, which merely record theft, Video Investigator monitors high-loss items and instantly identifies theft incidents automatically using existing video systems. The patented technology also enables retailers to track customer traffic, detect stock-outs, identify safety issues, and more.

Headquartered in Cambridge, Massachusetts, IntelliVid is backed by Intel Capital, Flagship Ventures, Egan-Managed Capital and DFJ New England. Its customers include leaders in the chain drug store, department store and discount retail segments. For more information, visit .

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Contacts

George Cohen Communications George Cohen, 617-325-0011 george@gccpr.com