3i invests $15m in Transtech

3i paid $9 million for 13% of Transtech Control, and is injecting a further $6 million into the company.

January 15, 2006

Transtech Control is approaching a significant contract with the US Federal Aviation Authority (FAA). Meanwhile the company is raising money. Transtech, which develops and supplies monitoring, control, management, and guidance systems for airports, announced today that British investment fund 3i, which manages $1.3 billion in assets and focuses on technology investments, had injected $6.25 million into the company at a company value of $60.5 million, before money, and had also bought 13% of the company from Formula Vision Technologies (TASE: FVT) for $8.75 million.

After its current investment, 3i now owns 22.5% of Transtech, at a cost of $15 million. Formula Vision’s stake fell from 34% to 19.7%, and it posted a NIS 16 million capital gain. Formula owns an additional 6% of Transcom through venture capital fund Formula Ventures.

Transtech CEO Simcha Ohrenstein said that the current financing round was aimed at increasing sales activity and adding to the company’s cash reserves “for untroubled long-term planning.” The company raised $25 million a year ago from Israeli fund Giza Venture Capital, US fund Accel Partners, and Formula Vision, at a company value of $21.4 million before money. The money was used to repay a $17 million debt to banks and other entities.For more information, please visit http://www.transtech-solutions.com/.

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both here and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission