Aveso: Thin, Flexible, Low-Cost Printed Electronic Displays

Aveso Secures $6.25 Million in Series B Funding

UPS Strategic Enterprise Fund Joins Original Series A Investors

Minneapolis, October 23, 2006 – Aveso, a pioneer in the development of printed electronic displays, today announced the closing of a $6.25 million round of equity funding. Each of the company’s original Series A investors participated in the round, including ARCH Venture Partners, Frazier Technology Ventures and Dow Venture Capital. The company also announced the addition of several new strategic investors, including UPS Strategic Enterprise Fund and Kidron Opportunity Fund 1, a newly established private equity fund managed by Kidron Corporation. Proceeds from the round will be used to scale up and ramp production of Aveso’s initial numeric display products and to extend the company’s line of electronic displays for card, label and consumer electronic applications.

A segment of the $60 billion electronic display market, flexible displays are poised for explosive growth as they enable a range of new consumer and industrial applications. Aveso is developing flexible display technology uniquely suited to deliver against high volume, price sensitive applications such as credit cards and packaging labels. Aveso’s rugged, plastic displays are produced and scaled using installed high speed print manufacturing capacity. The displays operate at less than 1.2 Volts and can be driven directly from readily-available, general purpose microcontrollers.

Commenting on its participation in the Series B financing, UPS Strategic Enterprise Fund Manager, Alan Koenning, said, “UPS is committed to providing its customers with valuable shipping information where and when they need it to compete in today’s global economy. Aveso’s highly flexible, printable displays offer businesses the ability to extend the intelligence of their label and card products. The knowledge UPS will gain from Aveso in understanding this arena has potential application in multiple areas of our own business as well as our customers' businesses.”

”We are pleased to welcome UPS as an investor," said Dennis Brestovansky, President and Chief Executive Officer of Aveso. "Their knowledge and operational expertise will be invaluable to us as we develop displays that enable a new generation of smart active labels for the global packaging and supply chain market."

Aveso is working with OEMs and brand owners in a range of markets to leverage its display products to grow revenue, reduce fraud and theft, and improve safety and security. Early applications for the company’s numeric display modules include display-enabled financial cards that generate a one-time password (OTP) to support secure online transactions and eliminate the need for a separate hardware token. Smart active label applications enabled by Aveso provide a visual indication of product status, alerting the user when the integrity of a perishable product has been compromised by excessive temperature, shock or humidity and the product is no longer suitable for use.

About Aveso, Inc.
Aveso, Inc. is a pioneer in the development of ultra thin, ultra low-power printed electronic displays produced using existing print manufacturing capacity. The Company’s paper thin displays make it practical for the first time to integrate electronic displays into high-volume printed products such as credit cards and packaging labels. Aveso display devices are designed for integration into the global card and label manufacturing base and can be scaled cost-effectively in the hundreds of millions to billions of units.

About The UPS Strategic Enterprise Fund
The UPS Strategic Enterprise Fund is the private equity strategic investment arm of UPS. The Fund is a corporate venture capital group which focuses on developing critical partnerships and acquiring knowledge returns from its investments in information technology companies and emerging market spaces. UPS is the world's largest package delivery company and global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS (NYSE: UPS) serves more than 200 countries and territories worldwide with information available at www.ups.com.

About Kidron Corporate Advisors LLC
Kidron Corporate Advisors LLC is a corporate advisory and mergers & acquisitions boutique based in New York City that specializes in global emerging growth companies. Their first private equity fund, Kidron Opportunity Fund I, LLC (KOFI) and its offshore feeder fund, Kidron Opportunity Holdings I, Ltd. were launched in July 2006 to give investors the opportunity to gain access to the unique deal flow the Kidron principals see in the context of their investment banking and corporate advisory activities. For more information, please visit www.kidronllc.com.