Quebec City (QC) – June 6th 2005 Optosecurity Inc., http://www.optosecurity.com/, a company developing breakthrough security products for the automated detection of weapons or explosives in cargo or luggage, today announced the closing of its first round of investment of CDN $2.4 Million.

Optosecurity’s products directly address the most difficult challenges facing transport security authorities worldwide – increasing the detection rate of threats and accuracy of cargo and baggage screening equipment, without causing delays of shipments or travel time. The Optosecurity Opticallypowered screening product complements human security teams, and existing screening systems by significantly increasing overall accuracy rates and reducing the time required to complete tasks. Optosecurity’s new product is based on the Optical Correlator developed by the National Optics Institute (INO), Canada’s largest R&D center in applied photonics; Optosecurity obtained the exclusive rights to the Optical Correlator.

Optosecurity’s first round of investment is led by the Business Development Bank of Canada (BDC)’s Seed Investment Group and supported by Venture Capital fund Innovatech Quebec and a group of local private investors.

“I would like to highlight the remarkable leadership of the BDC in providing financing to start-up companies like ours. Without the strength of their presence and unshakable support since 2004, I could not have realized this dream. I also want to thank Innovatech who provided the final, and critical piece of the puzzle that enabled us to close our financing,” says Eric Bergeron, Founder, President and CEO of Optosecurity.

“We have been impressed by Optosecurity’s unique position in the Homeland Security marketplace and the immense potential of their optical technology to enhance the performance of current screening technologies deployed in airports”, said Jacques Dénommée, BDC’s Investment Director.

Eric Bergeron, President and CEO of Optosecurity, said, “Government regulators and screening equipment vendors from around the world immediately recognized how unique and valuable Optosecurity products and technology can be - we are actively in discussions with several partners who appreciate the full impact of our technology and how it will revolutionize security screening.”

“Investing in a start-up is first and foremost investing in the CEO. We believe Eric Bergeron’s international track record and demonstrated perseverance and fighting spirit in raising a large round in a very difficult financing environment for early stage ventures is an indication of the determination and vision he will show in making this company a success for all investors” said Francine Laurent, President of Innovatech Quebec.

Jean-Guy Paquet, President and CEO of INO, said, “We are delighted that Optosecurity has obtained financing which will allow this promising company to break new grounds with the use of the Optical Computing technology. We are very happy to once again offer the private sector INO’s vast expertise developed over the years through our team of qualified researchers.”

About Optosecurity Inc.
Optosecurity is a venture-funded company that develops breakthrough security products for the automated detection of weapons or explosives in cargo or luggage. Optosecurity is located within Quebec City’s High-Tech Park and is a technology spin-off of INO, Canada’s largest R&D facility in applied photonics.

www.optosecurity.com

About BDC
BDC is a financial institution wholly owned by the Government of Canada. BDC plays a leadership role in delivering financial, investment and consulting services to Canadian small business, with a particular focus on the technology and export sectors of the economy.

www.bdc.ca

About Innovatech
Innovatech Québec is a $125 M early stage venture capital fund owned by the Government of Quebec. Innovatech invests in emerging technology-intensive companies in Information technology and telecommunications, biotechnology, and advanced applied technologies. It has a diversified portfolio constituted of 65 active investments in private and public companies.

www.innovatechquebec.com

About INO
INO designs and develops technological platforms and innovative solutions that incorporate optical and photonics technologies. To date, INO has developed over 2,200 custom solutions for entrepreneurs and industrial customers in the following areas: aerospace, security and defense, biophotonics and life sciences, agrifood, industrial processes, timber, telecommunications, transportation, and the environment.

www.ino.ca

For additional information please contact:
Mark Scott
mscott@optosecurity.com
http://www.optosecurity.com/
Toll free: 1.866.281.3240
Or 514.914.0969

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