SANTA CLARA, Calif. September 27, 2005 - ViVOtech, the leading supplier of Contactless payment solutions, today announced it has raised $18.25 million in Series B funding. The round is being led by Draper Fisher Jurveston. Also participating in the round are Nokia Growth Partners, DFJ Gotham and previous investor Alloy Ventures.

"The Contactless payment market has begun to expand rapidly," said Josh Stein of Draper Fisher Jurveston, who is joining the ViVOtech Board coincident with this investment. "Over the next five years opportunities will be enormous as the payments industry introduces innovative new payment methods in the quest to replace cash, and enhance speed, convenience and security at the point of sale. We see ViVOtech as an innovator with ground-breaking payments solutions, very well positioned to take advantage of these opportunities."

"We believe that widespread adoption of Contactless payment cards by consumers, banks and retailers will lay the foundation for a large opportunity to add payment capabilities to mobile phones using Near Field Communication (NFC) technology," said Rob Trice, General Partner at Nokia Growth Partners. "With mobile phone and credit card users measuring in the billions globally, the market potential for mobile payments and for enablers of this transition like ViVOtech are endless."

"We welcome Draper Fisher Jurveston, Nokia Growth Partners and DFJ Gotham to the ViVOtech team, and returning investor Alloy Ventures," said Michael Mullagh, CEO of ViVOtech. "The participation of such prestigious investors is a vote of confidence in the market and the ViVOtech team. This additional funding will allow ViVOtech to grow stride for stride with the major participants in the multi-trillion dollar electronic payment market."

About Our Investors

Draper Fisher Jurvetson has created a global network of affiliated venture funds with over $3 billion in capital commitments and offices in the major technology centers around the world. Headquartered in Silicon Valley, the firm has proven expertise in identifying and helping extraordinary entrepreneurs who want to change the world. For more information about Draper Fisher Jurvetson, please visit www.dfj.com.

Nokia Growth Partners is a global fund headquartered in London and Menlo Park, California. Nokia Growth Partners focuses on investments in information and communications technologies, with an emphasis on wireless. Target companies will have a working product, have reached significant revenues, and are beginning to experience adoption by major industry participants such as Nokia. For more information about Nokia Growth Partners, please visit www.nokiagrowthpartners.com.

DFJ Gotham is a Draper Fisher Jurvetson affiliate fund which shares the knowledge, resources and contacts of over 15 DFJ-network funds.

Alloy Ventures have been providing venture capital to companies since 1977. The company's primary areas of investment are in information technology and life science industries. Alloy Ventures currently has more than $750 million under management. For more information about Alloy Ventures, please visit www.alloyventures.com.

About ViVOtech
ViVOtech provides an end-to-end transaction platform that allows consumers to make Contactless payments with radio frequency-enabled credit cards, debit cards, access cards, key fobs, and NFC enabled mobile devices. The company's products are backwards compatible with today's existing point-of-sale (POS) infrastructure, providing seamless upgrades. With more than 100,000 of its Contactless payment readers deployed around the world, ViVOtech products are found in Fast Food Restaurants (QSR), Casual Dining Establishments, Corporate Cafeterias, Parking Garages, and Movie Theaters as well as Convenience, Grocery, and Drug Stores. ViVOtech is headquartered in Santa Clara, Calif., with offices in Europe and Asia. In 2005, ViVOtech received the prestigious Frost & Sullivan technology award for its role in transforming the Contactless payment industry.

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