BETHESDA, MD–( EMWNews – April 8, 2008) – KoolSpan, Inc. today announced it has closed a

$7.1 million equity financing led by New York-based Security Growth

Partners, together with TWJ Capital, Rose Tech Ventures, and members of New

York Angels. KoolSpan’s TrustChip™ crypto engine is a self-contained

authentication, encryption and key management platform. Proceeds of the

financing will be used to fulfill global demand for TrustChip-based

solutions including TrustChip Voice, which creates instant AES-encrypted

links among off-the-shelf mobile phones.

“The KoolSpan TrustChip platform is designed for the rapidly growing

mobile-to-mobile and machine-to-machine markets,” said KoolSpan CEO Tony

Fascenda. “With each non-PC device that becomes network-connected, the need

for a self-contained, highly-scalable security solution grows. TrustChip

meets this need, whether plugged into an enterprise smart phone, embedded

into critical infrastructure monitoring equipment or incorporated into

industrial assembly equipment.”

While a hardened crypto processor, TrustChips are designed to make use of

industry standard SD memory slots (micro, mini and full size) available on

cell phones, computers and other devices. KoolSpan TrustChips feature a

streamlined device-to-device architecture, providing their host devices

strong mutual authentication, fully-encrypted network connectivity, as well

as secure storage.

“Cell phones were originally designed for portability and ease-of-use, not

security,” said Security Growth Partners CEO Elad Yoran. “However, today we

use cell phones not only to make phone calls, but also like laptop

computers. The trouble is that neither the voice side nor the data side of

cell phones is secure. KoolSpan’s TrustChip engine solves this critical

business problem simply and cost effectively. It also provides a platform

upon which third-party developers, OEMs and enterprise customers can deploy

applications that run securely on the large number of cell phones that are

TrustChip compatible.”

KoolSpan technology has been rigorously tested and reviewed by top security

research organizations in the United States government, as well as many

industry trade publications. KoolSpan is an Information Security

Magazine/TechTarget Readers Choice Award winner for Best Emerging

Technology, a category winner of the 2007 SC Award for Best Multi-Factor

Authentication technology, and was featured by the editors of Network World

as one of the Top Ten “Security Companies to Watch.” KoolSpan’s TrustChip

platform and TrustChip Voice are currently being evaluated by more than two

dozen global corporations and government organizations.

About KoolSpan: Based in Bethesda, Md., KoolSpan is an innovator of secure

connectivity solutions that seamlessly unite mission-critical network

devices. From smartphones to servers, KoolSpan’s TrustChip™ crypto

engine creates secure and trusted connections between any two points

independent of network boundaries. www.koolspan.com.

About Security Growth Partners LLC: Security Growth Partners (SGP)

identifies, invests in and supports companies that provide key emerging

security solutions. SGP serves a large and diverse industry including,

among others, information technology (IT) security, Critical Infrastructure

Protection (CIP), homeland security and their related markets.

www.SecurityGrowth.com.

About TWJ Capital: TWJ Capital makes growth equity investments in

expansion stage companies which need “acceleration capital” to achieve

growth inflection, and venture capital investments in start-up and early

stage companies. Portfolio concentrations include retail,

telecommunications software, acoustical electronics and devices, and

Internet business-to-business services. www.twjcapital.com.

About Rose Tech Ventures: Rose Tech Ventures, based in New York, is an

early stage investment fund, incubator, and support infrastructure

dedicated to finding, nurturing and launching the next generation of world

class ventures. www.rose.vc.

About New York Angels: New York Angels is the leading business angel

investment consortium in the Greater New York region. Since 1997, the 70

members of the group and its predecessor organization have invested over

$40 million in more than 75 new ventures. The members of New York Angels

are entrepreneurs, CEO’s, venture capitalists and business leaders who

themselves have founded, funded and built world-class companies.

www.newyorkangels.com

Media/Analyst Contact: Jim Engineer e-Rainmaker PR for KoolSpan 630.728.1387 [email protected]