Atlantes Secures $5 Million First-Round Funding from Redleaf Group, Inc.; Silicon Valley Company Unveils New Wireless Access and Inventory Control Technologies.

Business/High Tech Editors

SARATOGA, Calif.--(BUSINESS WIRE)--Feb. 1, 2001

Redleaf Group, Inc. (www.redleaf.com) a technology operating company, today announced it has led a $5.75 million round of capital for Atlantes Services, Inc., a Silicon Valley-based company offering wireless, Internet-managed access control and inventory tracking technologies. Other investors include Starter Fluid, L.L.C., Brainstorm Ventures, L.L.C., Constantin Partners, L.L.C., and Silicon Valley Bank.

Atlantes offers real time commercial applications that provide suppliers of critical parts (e.g. networking, computers, medical devices, aircraft parts, etc.) wireless web-based systems to remotely control inventory and access to critical parts further out in the supply chain. Using Atlantes applications, suppliers can now push critical parts all the way out to customer sites and local or regional hubs yet reliably maintain minimal inventories, thereby significantly increasing service levels without increasing costs.

The Atlantes service automatically tracks the location and movement of inventory and personnel coming and going from secured locations, automatically decrements and replenishes inventory, and manages return logistics. Atlantes uses its patent-pending Controlled Access Management System (CAMS) and Remote Inventory Management System (RIMS), a combination of security hardware and software, access control and tracking, intelligent tags and wireless services, to provide an integrated and automated solution for remote inventory management.

"The service parts logistics business is growing exponentially. Success in this area requires that suppliers be proficient in delivering mission critical technology and systems, respond promptly to repair service requests with parts in hand, and prevent overstocking and shrinkage of idle inventories in the supply chain," said Rex S. Jackson, senior director of Redleaf's Saratoga office. "Atlantes has created a leading edge solution that will offer significant value in this space. "

In addition to capital, Redleaf will provide Atlantes with support services including, marketing, recruiting and operations expertise. Atlantes will also have the opportunity to work with other Redleaf companies as appropriate.

"The opportunity to partner with Redleaf was appealing because we knew we wanted a partner that would be actively involved in supporting us as we refined and executed our business model," says Suzy Brown, CEO of Atlantes. "The Atlantes team is an accomplished group of experienced entrepreneurs who constantly push the limits and thrive on succeeding in new ventures. We needed a partner that would actively support us as we worked through choosing and scaling suitable applications and solutions. Redleaf didn't just say `nice idea, let us know when you're further along and you've figured it all out,' they helped us work through and perfect our initial concepts to ultimately develop our current business model. As a result, we knew this was a group that could help us build a great company."

About Atlantes Services, Inc.

Atlantes is a Silicon Valley-based company that has developed web-managed, wireless access control and inventory tracking technologies. Atlantes' initial commercial application provides automation of remote inventory management for spare parts in field stocking locations for field service representatives and suppliers of critical parts. For more information, call 650/330-2300.

About Redleaf Group, Inc.

Redleaf Group (www.redleaf.com) is a technology operating company that leverages a powerful digital GRID (Global Resource for Internet Development) to provide services and capital for seed stage Internet technology companies and communities. Redleaf provides its partner companies with market access, strategic counsel and operational support from a team of seasoned professional managers whose specialties include finance, engineering, product development, systems integration, marketing and human capital management. These capabilities are offered today to partner companies through Redleaf Group's GRID in offices throughout the United States, Europe, and soon in Asia. Established in December 1999, Redleaf's strategic investors include Safeguard Scientifics (NYSE:SFE), Novell (Nasdaq:NOVL), VentureBank@PNC, Mellon Ventures, Inc., and Hewlett-Packard (NYSE:HWP).

Starter Fluid Management, L.L.C.

Starter Fluid (www.starterfluid.com) is a San Francisco-based venture capital fund designed to serve the market for Internet micro-investments. With a streamlined decision process the Starter Fluid Fund is one of the few venture capital funds that focus exclusively on smaller seed-stage investments while providing strategic assistance to its portfolio companies.

BrainStorm Ventures, L.L.C.

Brainstorm (www.brainstormventures.com) was founded in 1999 with a mission to fund emerging technology startups with global visions and actively assist them in their development.

Constantin Partners L.L.C.

Constantin Partners is an angel investment fund. The focus of the fund is seed and early stage financings in software, communications, and internet companies. Portfolio companies include: Garage.com, Tripwire Security Systems, Coremetrics, Xora, Digital Fountain and Atlantes.

Silicon Valley Bank

Silicon Valley Bank (www.svb.com) is a $5.6 billion commercial bank which serves emerging growth and middle-market companies in targeted niches, focusing on technology and life sciences, while also addressing other specific industries in which it can provide a higher level of service and better manage credit through specialization and focus. The founders of Silicon Valley Bank set out in 1983 to capture a growing market in Northern California which until that time had been greatly underserved by commercial banks -- emerging growth technology companies in the Silicon Valley. Since that time, Silicon Valley Bank has established a national reputation in this market based on a high level of expertise in a number of technology and life sciences niches. With a solid understanding of the true risks and rewards ofearly stage companies, the Bank is widely recognized for its ability to develop innovative approaches to meet clients' lending challenges.