Intelligent Systems Secures Venture Capital Funding for Item-Level RFID Development; Company Set to Operate Independently as Vue Technology

ALISO VIEJO, Calif., Sept. 7 /PRNewswire/ -- Vue Technology, formerly Intelligent Systems, a division of MeadWestvaco's New Ventures Group, announced today that Partech International and Canaan Partners have acquired the company to further its RF Networking and item-level RFID solution development. The funding will also enable Vue Technology to extend its sales and distribution capabilities. Vue Technology will operate independently with representatives from Canaan, Partech and MeadWestvaco serving on its Board of Directors.

Vue Technology's innovative approach to item-level RFID opens up new possibilities in retail store operations. The solution streamlines inventory management for retailers and manufacturers, reducing the financial impact of shrink and out-of-stock merchandise, and ultimately improving customer service. Prominent organizations, including Best Buy, Tesco and CVS/Pharmacy, are already evaluating its benefits.

"Demand is growing for item-level RFID in the retail and manufacturing industries," said Vue Technology's President & CEO Robert Locke, "This investment enables us to deliver the tools our customers need to manage their operations efficiently -- with a level of inventory visibility that is unmatched. We welcome the investment of Partech and Canaan. We look forward to working closely with all of our investors to extend the market leadership we enjoy today in delivering item-level solutions with quick and tangible return on investment."

"Vue Technology is bringing to market the next generation of RFID technology, fundamentally changing the way RFID networks will be deployed in the future," said Glenn B. Solomon, general partner, Partech International. "At Partech International, we look for companies with game-changing new technologies, great management teams and large, global market opportunities. We are very optimistic that Vue Technology represents such an opportunity and we look forward to helping the company continue its rapid expansion in North America, Europe and beyond."

With the Vue Technology solution, retailers can track what products are selling and how quickly; when inventory is low and what items need to be re- ordered; what items have been misplaced; what types of products are most likely to be lost or stolen and what promotional offers are working.

"The compelling business case for this solution was a key factor in our investment," said Skip Glass, partner, Canaan Partners. "Vue Technology is delivering a solution that reduces pain points and increases revenues for retailers by extending the value of RFID beyond the stock room and inside the store walls. Further, by reducing traditional RFID hardware costs, the company is uniquely positioned to deliver a return on investment that is attractive to any CEO, CFO or CIO."

Supporting both U.S. and European standards, Vue Technology's solution is frequency, tag and reader agnostic, allowing for seamless interoperability. Device management is fully compatible with the standards under development by EPCglobal and ISO, and its open architecture and Java platform allows for extended application functionality regardless of operating system.

Since 1999, Vue Technology operated as Intelligent Systems, a division of MeadWestvaco, under the company's New Ventures umbrella. The New Ventures group has a history of incubating innovative companies, including LexisNexis, that later become successful, independent operations. Under its umbrella, the Vue Technology team architected and commercialized a suite of intelligent RFID networking hardware and software offerings that enable retailers and manufacturers to deploy affordable item-level inventory tracking solutions.

"RFID is a growing area of interest for many of our customers and part of a rapidly expanding market segment," said Don Armagnac, president, MeadWestvaco New Ventures. "This sale allows MeadWestvaco to leverage its considerable RFID expertise while enabling Vue Technology to expand aggressively in new areas including inventory management, intelligent shelving and smart store development. In doing so, MeadWestvaco and Vue Technology will create complementary technologies and, as a result, be able to achieve higher levels of success in our respective markets."

About Canaan Partners

Canaan Partners is an early-stage investor and creates next-generation companies in Internet infrastructure, communications, software and services, medical devices, biological sciences, pharmaceuticals and diagnostics. Founded in 1987, the firm has invested in more than 210 companies, completed 52 mergers and acquisitions, and taken 45 companies public. Canaan was an early investor in Dexcom (DXCM), DoubleClick (DCLK), CommerceOne (CMRC), Copper Mountain Networks (CMTN), Esperion (ESPR), Immunicon (IMMC), International Network Services (INSS), ONI Systems (ONIS), and Peninsula Pharmaceuticals, along with dozens of other market-leading companies. Canaan has offices in Menlo Park, California and Rowayton, Connecticut.

About Partech International

Founded in 1982, Partech International is a leading global venture capital firm with $850M under active management and offices in the U.S., Europe and Israel. Partech invests exclusively in Information Technology and the firm's internationally integrated team of investing partners work together closely to find the most innovative companies demonstrating high return potential and disruptive technologies in the software and Internet, communications and components and healthcare IT sectors. Partech has a unique 20+ year track record assisting its portfolio companies to become global market leaders. Some of Partech's successful investments include: Ascend Communications, Alvarion, Business Objects, Cadence, CSG Systems, Digital Island, Informatica, Pentasafe and Vignette.

About MeadWestvaco

MeadWestvaco , headquartered in Stamford, Conn., is a global packaging company that delivers high-value packaging solutions and products to the world's most recognized companies in the food and beverage, media and entertainment, personal care, cosmetic and healthcare industries. The company also has market-leading positions in its Consumer & Office Products, Specialty Chemicals and Specialty Papers businesses. MeadWestvaco, with operations in more than 29 countries, has been selected for the Dow Jones Sustainability Indexes, and manages its forestlands in accordance with the Sustainable Forestry Initiative(R). For more information, please visit http://www.meadwestvaco.com/.

About Vue Technology

For organizations that want to manage product inventory more effectively, Vue Technology constructs enterprise-wide RFID networks that deliver unmatched visibility from distribution center to point of sale. For retailers, Vue Technology completes the RFID "last mile" by tracking items from the store room to the store shelves and the point of sale. By giving each item a unique identity and location, Vue Technology's solution allows retailers to monitor what products are selling and how quickly; what types of products are most likely to be lost or stolen; and what promotional offers are working and how well. Vue Technology's technology has been developed to take advantage of the open-architecture features of the EPC Network, and supports the vision of low- cost ubiquitous RFID pursued by EPCglobal and its other subscribers. For more information, please visit http://www.vuetechnology.com/.

Website: http://www.vuetechnology.com http://www.meadwestvaco.com