VidSys Launches US Operations Secures $3 million Series A Financing from IDG Ventures Names Michael S. Mancuso Chief Executive Officer

ALEXANDRIA, VIRGINIA, VidSys, Incorporated (VidSys), developer of mission-critical video management and distribution solutions, including VidShield, VidPhone, and Intelligent Traffic Management System (ITMS), today announced the successful spin-out from its parent company, Dynamic Technology Systems, Incorporated (DTS). In conjunction with the spin-out, VidSys announced that it has received $3 million in Series A financing from IDG Ventures and that Mike Mancuso, former president and COO of Aether Systems, has joined the Company as the Founding Chief Executive Officer. IDG Ventures’ General Partners Michael Greeley and David Aronoff, and DTS’ President and COO Brian Petitt will also join the Company’s Board of Directors.

The formation of VidSys as a new company is a strategic move to provide the focus and resources needed to meet significant increased customer demand for the company’s unique video technology assets, which were formerly operated by DTS’ Integrated Communications Division, and have been in deployment in some of the largest regional Command and Control Centers located throughout the country including the Cities of Chicago and Seattle as well as state centers in California, Florida, Maryland, New Jersey, New York, and Pennsylvania. With a profitable business and significant sales pipeline, VidSys will focus all of its efforts on continuing to lead the industry in delivering video solutions based on its unique intelligent video management platform, the Interactive Multimedia Video Distribution System (IMVDS), as well expanding its product suite into new markets and geographic sectors.

“With a proven product, top-notch technical team and marquis customers, VidSys is well positioned to become the benchmark for intelligent video management and surveillance solutions to both government and enterprises around the world,” said Mike Mancuso, chief executive officer, VidSys. “I look forward to working with the VidSys team to expand their already rich product portfolio to fulfill the tremendous demand for large-scale video surveillance solutions worldwide.”

VidSys has developed market-specific video management applications that support disparate video technologies and protocols. This powerful, comprehensive and flexible “hybrid” solution uniquely captures the technological benefits of both analog and digital video signals by supporting the full spectrum of current and future CCTV system requirements world-wide. In addition, VidSys offers customers the ability to incorporate patented transport methods which allows distribution and sharing
of full-motion, bi-directional, real-time video signals over existing infrastructure, such as standard voice and data lines.

“Given recent national and global events, VidSys has a tremendous market opportunity to add significant value to the surveillance efforts of organizations around the world,” said Michael Greeley, managing general partner, IDG Ventures. “We are extremely pleased to welcome Mike Mancuso to the team. As the former President and COO of Aether Systems and President of Cerulean Technologies, Mike brings a strong background in transportation and public safety that will be invaluable as we look to support the growing customer base.”

“DTS is looking forward to a bright and successful future for VidSys,” said Brian Petitt, president and chief operating officer, DTS. “With proven leadership and solid established technology, VidSys’ potential is unlimited.”

In addition to the new seasoned executive management team, members from DTS’ Integrated Communications Division (ICD), including James Chong, former Director of ICD, have transitioned over to VidSys to maintain the highest level of customer support, engineering and marketing initiatives for the current product lines.

About VidSys
VidSys is the leading developer of a dynamic visual communications platform called the Interactive Multimedia Video Distribution System (IMVDS). VidSys products have been installed and operating in mission-critical command centers in some of the largest cities in the US since the late ‘90s. With in-depth expertise in Intelligent Transportation Systems (ITS), video surveillance, and command facilities, VidSys has become identified as a key strategic partner for multiple large global systems integrators, designers, and general contractors. VidSys solutions are based on open-architecture platforms, international standards, and existing communications infrastructure to enable maximum flexibility in video systems design and scalability. For additional information about VidSys, please visit www.vidsys.com.

About IDG Ventures
IDG Ventures Boston is a leading venture capital firm focused on investing in early-stage information and healthcare technology companies. With $280 million under management, the firm is an independent partnership making investments on behalf of its limited partners. The fund is affiliated with IDG Ventures, a global $1 billion network of funds spanning Asia, Europe and North America. International Data Group, the world’s largest IT media, research, and event company, is the flagship limited partner for IDG Ventures Boston. Through the IDG global network, IDG Ventures Boston is able to uniquely add value to its portfolio companies by facilitating revenue acceleration and global expansion and establishing relationships with key strategic partners. For more information, visit www.idgventures.com.

About DTS
Established in 1986, Dynamic Technology Systems, Incorporated (DTS) has evolved to a successful communications systems integrator and business software applications firm. DTS is an ISO 9001-2000 certified corporation specializing in delivering flexible, cost-effective communications and ebusiness solutions to customers and partners in the government and commercial sectors. For more information visit www.DTS-Inc.com.