New York Angels Seed More Than $3.2 Million in 2004; High-Level Angel Investment Consortium Sees Opportunities in Emerging Technology on the East Coast.

NEW YORK -- New York Angels, Inc., the metropolitan area's leading early stage investment group, has contributed more than $3.2 million toward the growth of eight local emerging technology companies so far this year. The group's 44 members are experienced and successful executives and entrepreneurs, most of whom are founders and current or former CEOs of high-growth companies. In addition to their capital, they add value to every company in which they invest by bringing a wealth of professional experience, hands-on skills and industry contacts.

To date in 2004, the group has made eight investments, including KoolSpan, Feedster, Metaphor Solutions and BioScale. These represent the type of young companies with compelling business models and innovative solutions that New York Angels uncovers.

"Creative investors are always looking for exciting, high-growth companies, and New York Angels has discovered some of the best and brightest," said Chris Saxman, Executive Director of the group. "The deals the Angels have closed so far this year as well as those we are currently reviewing represent a remarkable array of businesses with strong revenue models and proven value propositions. It's a very exciting time to be evaluating ventures and working with executives to help solve their operational, strategic and financial challenges."

New York Angels maintains rigorous admissions standards and expects its members to contribute both expertise and capital to its portfolio companies. Its members bring a wide range of functional and industry expertise to their investments. Members include the founders of Half.com and Register.com as well as professional financiers and leaders of Fortune 500 companies. New York Angels also maintains close relationships with leading venture capitalists to assist portfolio companies with follow-on financings.

Investments made in 2004 to date include:

--KoolSpan, Inc., a provider of smart-card based network security systems;

--Feedster, an Internet search engine that exploits the massive adoption of RSS to provide timely, meaningful search;

--Metaphor Solutions, Inc., automating customer service using speech recognition; and

--BioScale, a provider of biomeasurement systems.

"Working with New York Angels has been one of the smartest moves we made in seeking and accepting outside funding," said Tony Fascenda, Chief Executive Officer and Chief Technical Officer of KoolSpan. "We found a true partner and business mentor organization to work alongside us to help us grow. The New York Angels investment is part of our start-up nest egg, but it's really the value of the group's insights, counsel and tried-and-true strategies that will be invaluable to us."

About KoolSpan, Inc.

KoolSpan, Inc. delivers ultimate data security and ultimate user simplicity using Smart Cards, not servers, to protect networks and information assets. The security and user experience is identical from both inside or outside the enterprise, from a wired or wireless network. KoolSpan authenticates and connects the user to the network as a true LAN peer, providing local security policy privileges and restrictions, regardless of the user's physical location. Only KoolSpan delivers a bi-directional, "keyless," 2-factor authentication which automatically enables a 256-bit AES encryption session at Layer 2. KoolSpan's solution, built on an open standards platform, has implemented the tried and true, tamper-resistant Smart Card used in more than half a billion mobile phones worldwide. KoolSpan is based in North Bethesda, Md. For more information visit http://www.koolspan.com.

About Feedster

Feedster is a rapidly growing search engine for online content and weblogs published using RSS, a newly popular XML standard. Feedster delivers timely and meaningful search results from over 1 million indexed sources including over 50,000 professional feeds from The New York Times, BBC, CNET, IDG, Wired and more. Approximately 5,000 new feeds are added daily. In addition to search, the Company's content management system and data development platform powers content syndication for targeted vertical categories such as jobs, products, politics, special events and media feeds. Additional features include FeedFinder(TM), the ability to search for RSS URLs, LinkFinder(TM), to discover links to specific sites or blogs and MyFeedster(TM), a personalized feed aggregator for updated information from chosen sources or subjects. For more information go to http://www.feedster.com.

About Metaphor Solutions, Inc.

Metaphor Solutions, Inc. offers packaged speech IVR (Interactive Voice Response) solutions to call centers and enterprises with the most human-like caller experience at the lowest cost of deployment. The company has the most number of packaged speech applications in the industry. The company delivers this through its patent-pending Metaphor Conversation Manager (MCM) that allows the fastest and most flexible speech IVR application development. This in turn allows small and medium enterprises to enjoy the large labor savings and superior caller experience of speech IVR with significant reductions in the cost, risk, complexity and time to market. The company's packaged speech IVR applications run on standard voice gateways based on VoiceXML and SALT. Metaphor markets its applications directly as well as through a network of partners and resellers. Deployments can be hosted or installed on-premise. Callers can dial into Metaphor's inventory of speech applications and experience them live using the published numbers on the company Web site at www.metaphorsol.com.

About BioScale

BioScale, still in stealth mode, will provide instruments and MEMS based biochips for a variety of biodetection applications.

About New York Angels, Inc.

New York Angels' mission is to provide opportunities for its members to obtain outstanding financial returns by investing in early stage technology and other high-growth companies in the Northeast and accelerating them to market leadership. The firm's members provide seed and early stage capital up to $1 million, an investment range not generally served by venture capital funds. Member investors are founders, CEOs, venture capitalists and business leaders who have funded and built world-class companies. Their goal is to apply their hard-earned lessons by mentoring and coaching the entrepreneurs in whom they invest. Since 1997, the group and its predecessors have invested more than $18 million in 62 ventures.

For more information, visit www.newyorkangels.com.

To submit a business plan to be considered for funding, visit http://www.newyorkangels.com/submit.htm.

To learn about becoming a member of New York Angels, contact Mr. Saxman at [e-mail].

New York Angels would like to acknowledge its corporate sponsors, which ably serve early stage companies in the New York City area:

Legal Sponsor: Goodwin Procter LLP (http://www.goodwinprocter.com)

PR Sponsor: Articulate Communications Inc. (http://www.articulatepr.com)