Arcturus Capital Partners Announce Closing of First Venture Capital Fund; Fund Provides a New Financial Source for Southern California Entrepreneurs, While Creating Technology Jobs for the Region.

LOS ANGELES -- Arcturus Capital, a Los Angeles-based venture capital firm, today announced the first anniversary of the initial closing of its Arcturus Capital Venture Fund, L.P. The fund was closed to new investors at the end of the second quarter of 2005. Since the initial closing of the fund, Arcturus Capital has invested in nine companies. The firm's focus is on early-stage technology companies in the Southern California area. Eight of the first nine investments of the fund have been made in the region, creating a range of new technology jobs for Southern Californians. The anniversary of the fund's initial closing coincides with Arcturus' investment in V-Enable, a San Diego company specializing in voice-activated search on cell phones, and the ninth company in the fund's portfolio to date. Investments were received from high net worth individuals, family offices, and foundations.

Through its support for early-stage technology companies, Arcturus is servicing a business sector that has been largely underserved locally by venture capitalists, making it one of most active firms in the region and a significant new funding source for Southern California entrepreneurs.

"We are pleased to have closed on $32 million in commitments, and look forward to helping reinvigorate the Southern California technology marketplace," said Stephen Watkins, General Partner and co-founder of Arcturus Capital. "It is our belief that the technology sector has been capital starved relative to the opportunities and the regional economy."

Arcturus assists the companies in its portfolio through the resources of nine investment professionals, who have a depth and breadth of experience in venture capital investing, professional investment management, executive operations, and advanced scientific research. Together, they have founded 15 successful companies, served as directors on more than 50 corporate boards, and invested in more than 100 private companies, which have in turn led to 60 initial public offerings, mergers, or acquisitions. Additionally, the combined experience of the Arcturus principals includes management of 11 venture capital funds and more than $2.5 billion in institutional assets.

It is the hope of the Arcturus management team that the fund, which had its first closing in Fall 2004, will breathe new life into the Southern California technology industry. At present, in addition to V-Enable, companies within the Arcturus portfolio include Novariant, the technological leader in GPS guidance systems; Xponent Photonics, which produces optical networking units through a revolutionary process; and Green Hills Software, the premier provider of high-reliability, real-time operating systems.

"Southern California, with its plethora of both university and institutional research organizations, is truly a hot bed of technological R&D and innovation," explained Stevan Birnbaum, Arcturus General Partner and Chairman of the Investment Committee. "As a new venture fund dedicated to advancing the technology sector in this region, Arcturus hopes to improve the environment for the sector overall and finance some of the region's most promising high-growth companies."

About Arcturus Capital

Arcturus Capital is one of the leading venture capital investment firms in Southern California. Located in Los Angeles, Arcturus is focused on early-stage funding for technology companies. The companies in its portfolio are assisted through the resources of nine investment professionals who have a depth and breadth of experience in venture capital investing, professional investment management, executive operations, and advanced scientific research. The Arcturus Capital Venture Fund, L.P., which officially closed on June 30, 2005, is one of the leading venture stage investment offerings in Southern California, specializing in the technology sector. For more information about the company and the Arcturus Capital Venture Fund, please contact 213-473-1800 or visit www.arcturusvc.com.