SRI International has a history of creating highly successful new spin-off ventures. We have launched more than 25 ventures, some of which have market capitalizations of over $1 billion. These companies have all been developed from concept to venture by SRI or our subsidiary, Sarnoff Corporation, and they are based on breakthrough technologies developed within our laboratories. We nurture our spin-off ventures at our own facilities, thus conveniently providing work space, infrastructure support, and business development resources.

To provide us guidance and support in developing these new ventures, we organized the nVention Advisory Board. The board comprises seasoned venture capitalists, from premier firms, who have a history in investing in SRI spin-offs. Board members are also chosen for their complementary backgrounds in areas including information technology, materials, power and energy, nanotechnology, and medical devices. They provide expert advice, market knowledge, business opportunity analysis, industry and customer contacts, and recruitment of venture teams.

The board meets quarterly to review presentations given by SRI entrepreneurs or champions of potential start-up ventures. Each meeting features two or three presentations, and board members provide ongoing advice and support between meetings.

In return for participation, board members have no preferred investment rights, but they do benefit from a first "look" at new SRI venture concepts and from exposure to advanced technology from SRI's leading laboratories.

The nVention Advisory Board has operated for the last several years. Members have invested in several spin-off companies of SRI or Sarnoff Corporation.

The board is composed of the following SRI and business leaders:

• Norman Winarsky, Vice President, Ventures and Strategic Programs, SRI International
• Curt Carlson, President & CEO, SRI International
• Bryan Rutberg, Chief Executive Officer, Rutberg & Company
• Charles Holloway, Kleiner Perkins Caufield & Byers Professor of Management, Stanford University Graduate School of Business
• David Liddle, General Partner, U.S. Venture Partners
• Drew Lanza, General Partner, Morgenthaler Ventures
• Gary Morgenthaler, General Partner, Morgenthaler Ventures
• Greg Blonder, General Partner, Morgenthaler Ventures
• Patrick Ennis, Managing Director, Arch Venture Partners
• Steve Jurvetson, Managing Director, Draper Fisher Jurvetson
• Yogen Dalal, Partner, Mayfield

Indicative of the board's role, SRI's recent spin-off company PacketHop(tm) received the following support.

SRI Spin-Off	Example Participation from nVention Advisory Board
	Introduction to key reference clients Validation and advice on improving the business model Funding from US Venture Partners and Mayfield (+$5M) for Series A and B, inclusion of ComVentures in Series B Senior executive team recommended by board members (e.g., CEO was an entrepreneur in residence at U.S. Venture Partners)

For more information, contact Norman Winarsky at (650) 859-2061 or norman.winarsky@sri.com.