Semtek Announces Closing of Series B Financing

VeriFone, Venrock, RRE Increase Investment


SAN DIEGO, Oct. 5  /PRNewswire/ -- Semtek Innovative Solutions Corporation announced today the closing of its Series B round of equity financing.  VeriFone Holdings, Inc. (NYSE:PAY), Venrock, and RRE Ventures added to their prior Series A investments and participated in the new round joined by several of the original private investors. Following the closing, VeriFone will own 19.9% of the fully-diluted shares of Semtek with the founding investors and venture capital interests owning the remaining 80.1%.

Semtek has developed and commercialized a suite of security technologies that are highly effective in stopping the rampant theft of credit card data and the counterfeiting of payment cards.  Semtek, in partnership with VeriFone, was the first firm to successfully deploy "end to end" encryption into the major retailer sector and remains the overwhelming market leader in terms of installed base in the emerging end to end security space.

In April of 2008, VeriFone announced a commercial agreement with Semtek that involved creating a new VeriFone product called VeriShield Protect ("VSP").  VSP is a VeriFone-branded end to end security solution based on Semtek's technologies.  The commercial success of VSP in the United States has led to an expanded commercial relationship between VeriFone and Semtek which now includes a world-wide initiative to propagate Semtek's technology as an effective standard for protecting payment card data.

The new commercial arrangement between Semtek and VeriFone also includes a new program to make the Semtek technologies available to all other hardware vendors for use on their systems and platforms.

"We are very pleased with our growing relationship and look forward to continued success and market traction," said VeriFone CEO Douglas G. Bergeron.

Patrick Hazel, CEO of Semtek, noted that, "VeriFone has played a key role in the commercial adoption of our technologies. Their leadership has been pivotal in penetrating this historically tough to penetrate market sector.  We're very much looking forward to the next chapter and the adoption of Semtek's technologies by the rest of the payment space."

About RRE Ventures:

Since its founding in 1994, RRE Ventures has been dedicated to helping talented management teams build leading companies in the software, communications, and financial services industries. With $850 million in assets, the firm backs entrepreneurs and management teams that possess the knowledge, vision, and discipline to create market-dominating companies. RRE's team offers a unique combination of management, operations, and investment expertise, as well as an unrivaled network of relationships that has helped build over 90 companies. For more information, visit http://www.rre.com/.

About Venrock

Venrock is a premier venture capital firm with offices in Menlo Park, New York, Cambridge, MA, and Israel.  Originally established as the venture capital arm of the Rockefeller family, Venrock continues a seven-decade tradition of partnering with entrepreneurs to establish successful, enduring companies.  Having invested $1.9 billion in 400 companies resulting in over 120 IPOs over the past 38 years, Venrock's investment returns place it among the top tier venture capital firms that have achieved consistently superior performance.  With a primary focus on technology, healthcare, and energy, portfolio companies have included Apple Computer, Centocor, Check Point Software, DoubleClick, Gilead Sciences, Idec Pharmaceuticals, Illumina, Intel, Millennium Pharmaceuticals, Sirna Therapeutics, and StrataCom.  For more information, please visit Venrock's website at http://www.venrock.com/.

About Semtek:

Semtek Corporation has been a leader in magnetics technology since 1999, serving large public and private sector clients who require secure data capture components for their fixed-base and wireless devices. Since 2004, Semtek has been focused on resolving the security deficiencies of magnetic stripe based payment systems and is playing an increasingly central role in the development of end to end security architectures for merchants and payment processors. For more information, please visit Semtek's website at http://www.semtek.com/.

About VeriFone Holdings, Inc. (http://www.verifone.com/)

VeriFone Holdings, Inc. ("VeriFone") (NYSE:PAY) is the global leader in secure electronic payment solutions. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets.  VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide. 

DATASOURCE: Semtek Innovative Solutions Corporation



CONTACT:  Cathie Anderson of Semtek Innovative Solutions Corporation,

[phone], 



Web Site:  http://www.semtek.com/

http://www.verifone.com/

http://www.venrock.com/

http://www.rre.com/ 

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