InSciTek Successfully Closes $4.0 Million Series C Capital Round for the Allworx 10x Product

 

For Immediate Release

InSciTek contact:
InSciTek/Allworx
Sandra Gault
(585) 421-3850 x124
smg@allworx.com

 

ROCHESTER, NY, February 19, 2004 - InSciTek Microsystems, Inc. is beating the market odds in both raising capital and market penetration – excellent for a high-tech startup company located in Upstate New York. InSciTek Microsystems has delivered to the market an innovative IT and Telephony product for small to mid-sized businesses known as the Allworx^® 10x, while simultaneously raising sizeable capital investments.

"It's exciting to know we are beating the market trends. We have spent that last year focusing on four key areas - technology development, fund raising, customer satisfaction and distribution. Our market penetration is based on designing leading-edge convergence technology solutions that deliver tangible, bottom-line business improvements for our customers. This funding will allow us to extend our reach and penetration.", states George Daddis, Jr., President and Chief Executive Officer.

According to industry experts, venture capital for 2003 began to settle out to a comfortable, sustainable level. For full year 2003,  investments totaled $18.2 billion across 2,715 companies, as reported by PricewaterhouseCoopers. This represents $6.7 million raised per company, on average.

With a total of $10.1 million raised, InSciTek beats the average by 33%. At the same time, the telecommunication sector is beginning to show signs of growth with the availability of new technologies such as Voice Over Internet Protocol (VoIP).

"Our timing couldn't be better to raise these funds. Of course, true proof of our performance is in the market place. The market has responded in the same manner as our investment partners. We've established a strong base of small business owners, who are realizing immediate benefits in lower initial investment costs, improved customer responsiveness, reduced reoccurring expenses and increased employee productivity due to the Allworx 10x. The Allworx 10x is a single-unit device that integrates phone, PC network, messaging software and group collaboration capabilities necessary for businesses to succeed today. Many of these convergence features are not typically available to the small business", states George Daddis.

The largest investor in Series C, Performance Technologies, Inc. is contributing up to $3.0 Million, followed by Cephas Capital Partners LP and individual private investors offering up to $1.0 Million.

"At Performance Technologies, we have strategically evolved our product portfolio to incorporate the packet-based Internet Protocol, or IP/Ethernet, as the core technology thread," said John M. Slusser, Chairman and Chief Strategic Officer of Performance Technologies. "The Allworx 10x represents a leading-edge application of the future of packet-based systems. Because of this focus and vision, we feel our investment in and relationship with InSciTek will be highly synergistic."

"As one of the original investors, we continue to support InSciTek because they consistently meet our expectations in both technology performance and customer acceptance," said Jeffery Holmes, Managing Director of Cephas Capital. "Also, the senior management team ensures a consistent focus on meeting targets. Yet, they stay flexible and creative in their approach to the business."

 

About InSciTek

InSciTek believes that small businesses today should have access to the same advanced information and communication technologies as big enterprises. The Allworx 10x provides businesses with all the mission-critical communications support they need in a single system. It combines PBX phone functionality with PC network services, secured Internet access, remote office, group collaboration tools and messaging software such as email, voicemail, unified messaging, follow-me calling, and group calendaring. For more information, visit www.allworx.com or call 1-866-ALLWORX (255-9679).

Allworx is a division of InSciTek Microsystems, Inc., which was founded in 1998. InSciTek is a multi-million dollar consulting company. Its experienced engineers apply their hardware and software expertise to help other businesses develop high performance, cost effective digital products, specializing in imaging, systems monitoring and communications applications. The company is located in Fairport, NY. For more information, visit the company's web site at www.InSciTek.com or call 585.421.3850

 

About Performance Technologies

Performance Technologies (Nasdaq NM: PTIX) is a leading developer of unified embedded computing products and system-level solutions for the communications, military and commercial markets. Serving the industry for over 20 years, our packet-based products provide our customers the ability to supply highly available and fully-managed systems with time-to-market, performance and cost advantages.

Performance Technologies is headquartered in Rochester, New York. Additional operational and engineering facilities are located in San Diego and San Luis Obispo, California, Norwood, Massachusetts and Ottawa, Canada. For more information, visit www.pt.com.

 

About Cephas

Cephas Capital Partners LP was formed in 1997 by Jeff Holmes and Clint Campbell along with six regional banks to provide growth capital to small and mid-sized businesses. For more information, call (585) 231-1528.