Akoya Raises Additional $1.7 Million for Cost Management Analytics Software; Village Ventures, Spring Mill Ventures and Golden Angels Network Join Arch Development Partners, Caterpillar and Tri-County Venture Capital Fund to Close Series A Financing.

PEORIA, Ill. -- Akoya, Inc., a business intelligence software company in the direct materials purchasing industry, announced today the close of its Series A financing with an additional investment of $1.5 million. This additional financing included new investments from Village Ventures, Spring Mill Ventures and Golden Angels Network. Arch Development Partners, Caterpillar and Tri-County Venture Capital Fund also increased their equity position in this round. In total, the company raised more than $2.5 million in its Series A round of financing.

Since the launch of the company in November of 2004, Akoya has experienced rapid growth in both customer acquisition and product development. The company's products gives direct materials purchasing professionals unprecedented insight in their direct materials spend. Akoya Costs Management Analytics analyzes the feature set of a part directly from the CAD data to determine the key drivers that affect the cost of the part. This data is then used with historical purchasing data to identify potential cost-saving opportunities.

"The continued interest from customers and investors is a testament to the truly unique nature of our cost management product and the value it provides," said Ted Greene, CEO of Akoya. "Our software seamlessly provides purchasing professionals with critical information and insight, which in the past was too difficult and time consuming to obtain. As our client case studies show, the potential cost savings can be in the millions of dollars."

The technology that drives Akoya Cost Management Analytics was developed by Caterpillar. Caterpillar transferred the technology and the intellectual property directly to Akoya for product commercialization purposes. Akoya is targeting a market of large manufacturing companies that have a combined annual direct materials spend of more than $400 billion.

"What attracted us to Akoya was a compelling product that targets the largest cost center in major manufacturing companies with an immediate and direct internal rate of return solution that is fast and measurable," says Jane Martin, General Partner of Village Ventures, who will be joining the company's Board of Directors.

"Akoya's unique product offering and its ability to reach milestones lead us to increase our equity position in this round, said Robert Schriesheim, managing partner of ARCH Development Partners, the initial seed venture investor in Akoya. "The company's strategy and direction to become a leader in the product cost management market, together with a management team that has a demonstrated ability to execute on its plan, is aligned with our long-term investment strategies."

About Akoya, Inc.

Akoya, Inc. is the leader in next-generation cost management solutions for direct materials. The company's core technology was developed at Caterpillar Inc. and serves as the foundation of its feature-based spend cost management solution. Through its cost management analytics solution, Akoya aims to replace the current practices for procurement cost management, which are often labor-intensive, time-consuming, and inefficient. For more information on Akoya, visit www.akoyainc.com or call 309-690-6900.