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6-15-2000 AUSTIN, Texas (January 7, 1999) - Vicinity Systems has secured an additional $8 million in venture capital to launch its E-plianceTM Enterprise Information Appliance-a standards-based, fully compatible computing appliance that delivers full PC performance to the desktop while eliminating the cost and complexity of the traditional desktop PC. The round was led by Austin Ventures and also includes Sternhill Partners, Seed Capital Partners, and private investors. "We think Vicinity Systems has developed an important new technology that will finally make the PC and the Internet accessible to production workers, call centers, and back- office operations," said Ed Olkkola, a general partner with Austin Ventures and the former Vice President of Business Development for Compaq Computer (NYSE: CPQ). Ed Olkkola and Bob Stearns, managing director of Sternhill Partners and the former Sr. Vice President and Chief Technology Officer at Compaq, will both join Vicinity's Board of Directors. "I think it's quite an endorsement for a startup like ours to receive such positive support from former Compaq executives who themselves have been responsible for countless innovations in PC architecture," said Vicinity President and CEO Mike Frost. The architecture of Vicinity Systems' new product allows users to retain their current desktop peripherals (monitor, mouse, keyboard, and speakers), but replaces the desktop computer with a tiny enterprise appliance device the company calls E-pliance. "Our vision of the future is that every user in a large enterprise will have a PC-it just won't be on their desk," said Frost. Each E-pliance is powered by an individual processor board in a centralized data center running standard Windows, NT, or Linux applications. In addition to added space in the work environment and dramatically reduced administration costs, the E-pliance architecture leapfrogs desktop PCs with easy migration to high-speed networking and voice- and video-over IP capabilities. Vicinity Systems plans a nationwide launch in the call center industry. "Equipment security and desk space are important aspects in a call center environment," said Gregg Collins, Manager Worldwide Central Reservations Technology, Starwood Hotels. "The E-pliance takes care of both needs. It removes the CPU box from the agent's desk so they can't load any random software that might impact operations, and it frees up desk space that comes at a premium. Maintenance is confined to the equipment room where all of the CPUs are nested. Technicians only have to go one place to troubleshoot and upgrade." The recent round of funding will allow Vicinity Systems to finalize development and launch of the E-pliance and implement its sales and marketing strategy. "We expect to expand our team to 50 people by the second quarter." says Frost. "Austin is a hot market and we're prepared to attract top talent with competitive compensation, stock options, and the chance to impact the post-PC era." For more information please contact: Kenneth Knotts |