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`News Release
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`130 S. First Street
`Ann Arbor, MI 48104
`
`FOR IMMEDIATE RELEASE
`
`Contact:
`Dick Eidswick at Arbor Partners
`734.668.9000
`John Austermann at CMS Technologies
`734.761.8076
`
`CMS TECHNOLOGIES, ARBOR PARTNERS ANNOUNCE FINANCING, ADVISORY
`RELATIONSHIP
`
`Ann Arbor Computer Technology Firm to Use $ 1 Million Venture Financing for Expansion,
`Creating Sales Force
`
`ANN ARBOR, January 26, 1998-CMS Technologies, a network-based computer
`security company, and Arbor Partners LLC, a high-tech venture-assistance firm, have concluded
`an agreement that will provide CMS with strategic advisory services and $ 1 million in capital
`funding. CMS was founded in Ann Arbor in 1993 to capitalize on EtherLock™ the Company's
`patented product that utilizes network-based electrical detection to secure networked computer
`equipment from unauthorized physical access, such as theft. Protected equipment includes
`desktop and laptop computers, workstations, servers, printers, and other PC-based devices.
`
`The EtherLock™ product line leverages the spread of computer networks through office,
`laboratory, and manufacturing environments, particularly in enterprises and educational
`institutions. EtherLock™ installs at the hub of new or existing networks, with no cabling,
`physical encumbrances, or visits to remote PCs required. EtherLock™ monitors real-time
`changes in network connectivity and immediately detects any relocation or reconfiguration of
`computers; this includes access to internal components (memory and disk drives) and associated
`peripherals (monitors and keyboards). In the case of unauthorized access (i.e., theft),
`EtherLock™ generates instant notification that may be announced in many forms including an
`audible alarm, email, pager, Internet-based communications, and silent alarms sent directly to
`security personnel and off-site monitoring services.
`
`Equipment identification and location information is reported and saved in a log file for
`event tracking. During authorized access, EtherLock™ also identifies the individual servicing the
`equipment. In this manner, EtherLock™ reduces the total cost of ownership and minimizes the
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`-more-
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`CONFIDENTIAL BUSINESS INFORMATION
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`Ch ri mar _ITC00256240
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`CMS227271
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`PLAINTIFFS' EXHIBIT
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`CASE NO. 6:15-CV-163
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`PTX-020
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`risk of high-impact data loss, which greatly improves asset management and intellectual property
`protection.
`
`CMS customers include General Motors, the University of Michigan, and Princeton
`University. Russ Moir, Network Manager for the General Motors, Canada plant in Oshawa, said:
`"When PC's are stolen, sometimes the loss goes far beyond even the cost of hardware, it's the
`time to reconstruct the work that was on the hardware that can set the whole project back
`significantly. " He said further: "Some PCs at Oshawa monitor critical processes in the plant
`while others control the paint shop. We found that essential features of Ether Lock™ are central
`asset management, multiple methods to enunciate an alarm condition, use of existing cabling,
`and the flexible extension of protection to peripherals as well. " General Motors - Oshawa
`recently ordered another 29 systems, bringing its total number of secured PCs to over 1000.
`
`With approximately 150 million computers distributed globally on networks, concerns
`over hardware theft and tampering have skyrocketed. Safeware Insurance estimates that in 1996,
`over 265,000 laptops were stolen in the US, a 37% increase over 1995.
`
`Arbor Partners, venture fund, Arbor Venture Partners, has invested $250,000 in CMS so
`that sales, staffing, and product enhancement can be expanded immediately. The completion of
`the $1 million equity financing will be accomplished by March 1998 with funds from high net(cid:173)
`worth investors known to Arbor Partners and CMS.
`
`According to John Austermann, CEO of CMS Technologies, "The funding provided
`through Arbor, coupled with their strategic marketing expertise, will assist CMS in building a
`sales and support organization which can aggressively approach both the corporate and
`educational markets for secure asset management and theft prevention. "
`
`Arbor Partners, during the process of assessing CMS' s business plan and prospects,
`introduced Austermann to CMS. Previously, Austermann was General Manager for Tecnomatix
`Technologies, a high-tech virtual manufacturing software company, which during his 5 year
`tenure increased revenues from under $1 million to over $20 million and raised $24 million in
`1995 through a US initial public offering.
`
`Marshall Cummings, who serves the company as Chief Technology Officer, formed CMS
`in 1993. Paul Wyandt, Vice President of Finance & Operations, has been with CMS since 1995
`and was instrumental in developing the relationship with Arbor Partners.
`
`Arbor Partners LLC is a venture-assistance firm and also the manager of the Arbor
`Venture Fund, which was raised to be a catalyst for financing technology firms in the Ann Arbor
`and Southeastern Michigan area. Arbor's partners include ex-CEO's and senior executives from
`some of the largest software and telecommunications companies in the local area.
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`-- END --
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`CONFIDENTIAL BUSINESS INFORMATION
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`Ch ri mar _ITC00256241
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`CMS227272