OPTICALITY VENTURES LLC

Investing with Vision

Executive Summary

Why OV Was Formed

Opticality Ventures puts patient, intelligent capital to work.

Mr. Pedhazur brings to the table, a varied 20-year career in technology and finance, working at two of the largest and most successful Wall Street banking firms. He formed VIG to pursue his interest as a principal investor and those principal interests in the VIG portfolio companies transferred to Opticality Ventures.

OV Investment Strategy

Investment strategies include finding synergies among portfolio companies to increase market penetration, to provide multiple product offerings and to maximize cross-selling opportunities of compatible products and services. For Mr. Pedhazur, this continues to be a key theme, investing in only one company in a defined space. OV provides expert advice to encourage the success of each venture.

Companies seek out Opticality Ventures for help in crafting and implementing their business plans because of OV's experience in mentoring a wide network of entrepreneurs, as well as their financial connections. Even when OV chooses not to commit capital, it adds insight and value during the evaluation process.

OV Personnel

Hadar Pedhazur, Founder and Principal evaluates the technology, looking for innovation, practicality and efficiency. He works with companies to properly staff, price and deliver products and services as well as to refine market strategies. He analyzes financial structures, helps negotiate company valuations, and assesses management and financial controls.

Mr. Pedhazur has evaluated in excess of three hundred potential portfolio companies over the past few years. A number of the consummated deals are highlighted below.

Lois Snitkoff, Director of Marketing and Communications, joined OV from VIG. She continues to assist the portfolio companies with their communications. This entails among other responsibilities, helping to craft marketing messages, customer contracts, RFPs, technical documentation and web design.

Matt Jacobus, Vice President - Technology, joined OV from JF Technology. Mr. Jacobus evaluates prospective investments, and works closely with the technology staffs of OV portfolio companies. He brings a wealth of experience as both an entrepreneur and Vice President of a major financial institution.

For detailed biographies, please see www.opticality.com/Bios/.

What Distinguishes OV?

OV principals, employees and advisors do much more than simply infuse capital and then "wait for the investment to grow". They actively involve themselves in the strategic decision making processes and operational details upon which companies succeed - or fail. OV is determined to contribute to the successes of the companies in which they invest.

Mr. Pedhazur has spoken at numerous industry conferences, been interviewed many time by the press as well as industry analysts, and written articles for publication in trade papers. He is currently Chairman of the Board of the first Opticality company, Digital Creations as well as a director of a number of other Opticality portfolio companies.

Zope Corporation (www.zope.com) is a comprehensive business solutions company which makes a suite of applications that runs on top of their Web Applications Server platform, Zope (www.zope.org). They offer cutting edge consulting solutions using their internally developed products and methodologies to build high-performance, dynamic, mission-critical web sites.

Mr. Pedhazur's first investment was made in BigCharts, Inc. (www.bigcharts.com), an Internet-based financial charting service. He researched, approached the company and established a relationship with the CEO that led to the subsequent investment and successful sale of BigCharts to CBS MarketWatch.com 14 months later.

ARC Systems, Inc. (www.arcsystems.com) is the leading provider of online, real-time automated underwriting of mortgages and other credit-based products. Their flagship services product, LendTech 2000™, also known as LT2k™, allows lenders to automate their underwriting decisions using their internal criteria. The process is completed within 30 seconds, and the result is tailored to the lending institution as well as to the borrower. ARC Systems approached Mr. Pedhazur after hearing about his relationships with other companies in Austin, TX.

XMLSolutions Corporation (www.xmls.com) is the leading solutions provider for end-to-end commercial e-commerce integration. XMLSolutions backs its XML e-commerce software with a superior professional services team, staffed with top experts in XML, EDI, enterprise metadata and legacy systems integration. Mr. Pedhazur had a prior relationship with the CEO and was invited to fund this exciting company. Mr. Pedhazur was on the board of directors.

Red Oak Software (www.redoaksw.com) develops and markets a software subsystem that programmatically automates any HTML or XML web application and integrates it with Active Software's Active-Works™ Integration System. Active Software is a leading provider of eBusiness Integration software that helps customers accelerate time-to-market, improve customer and supply chain interaction while reducing operational costs. Red Oak Software has entered into a source code license with SAGA Software and now sells and supports both Stingray and Mako, former products of Blue Lobster Software. Mr. Pedhazur has a 10-year relationship with the CEO and is the original seed investor in Red Oak. Opticality Ventures led a first round, and Mr. Pedhazur is on the board of directors.

Zero G Software (www.zerog.com) develops and markets the leading cross-platform and Java specific installation software, InstallAnywhere. The company is extending its core technology to bring a suite of new and exciting products and services to their customers. Mr. Pedhazur is on the board of directors.

iClips, Inc. (www.iclips.com) mission is to create the easiest and most engaging experience in video communication for their users and partners. The iClips Web site and iClips Producer application gives all Web users the tools they need to start communicating with streaming video today. Whether adding streaming video to email, personal homepages, greeting cards or Web communities, iClips provides the solution Web users have been waiting for. Thanks to iClips, online auctions, personal, classifieds and other community sites will never be the same.

ActiveState (www.activestate.com) is at the forefront of Open Source software, providing products and services for all popular Operating Systems including Windows, Linux and Solaris. Our key technology platforms are Perl, the Internet's most popular programming language and Python, a user-friendly scripting language. ActiveState solutions provide enterprise-wide deployment of Perl, improved programmer productivity, and seamless integration with other technologies. We believe in the evolution of core Perl and Python technologies and are committed to broadening the appeal of Perl and Python by making available easy to install packages for popular operating systems.

Javelin Technologies (www.javtech.com) is the leading provider of financial information protocol servers for electronic securities trading and is the front-runner in Financial Information Exchange (FIX) technology. Known for its innovations in server speed and reliability, Javelin's electronic trading products streamline work flow and eliminate the high cost and risk of developing network links and protocol implementations.

SciComp, Inc. (www.scicomp.com) is the leader in software synthesis technology for the Financial Services industry. SciComp turns high level specifications into source code via a proprietary software synthesis engine [SciNapse™], i.e., "software that writes software". This allows non-programmers (e.g., quantitative analysts, auditors, etc.) to leverage their professional expertise to produce highly efficient programs relevant to their businesses. SciComp approached Mr. Pedhazur, recognizing his unique blend of technology and industry-specific knowledge.

xSides Corporation (www.xsides.com) is the only company that actively shares screen space with Microsoft's Windows-based operating systems. Their flagship software product, xSides™, expands the usable screen areas on computer monitors out into the overscan area without interfering with the existing space. Mr. Pedhazur was asked to evaluate the deal by one of VIG's investors. During the process, VIG was invited to participate directly in the round alongside Amerindo Investment Advisors.

Mr. Pedhazur consistently generates an impressive deal flow, which includes the current pipeline of multiple deals at various stages of development, many of which are proprietary to OV. He has an extensive network of colleagues and associates, including large financial entities that bring many compelling opportunities to his attention.

Opticality Ventures combines the strengths of its Founder with his staff and network in a way that sets it apart from other venture firms. Deal flow, value creation, partnering closely with portfolio companies, financial acumen and idea generation, as well as strong and broad technological prowess all come together. It is often the case that Mr. Pedhazur successfully invests less money for a larger equity stake than other groups offer. This can only happen when there is a compelling advantage to taking money from a very specific firm.