ShotSpotter, Inc. Secures Record $9.4M Investment

Santa Clara, CA – April 11, 2006 – ShotSpotter, Inc. ( www.shotspotter.com), the leading developer of gunshot location systems and technology, announced today that it has closed an equity investment totaling $9.4 million. The lead investors in the round were City Light Capital and Claremont Creek Ventures (www.claremontvc.com). Other investors include Lauder Partners (www.lauderpartners.com) which led the company’s Series A financing in 2004, RNR Ventures, Labrador Ventures (www.labrador.com), and the Band of Angels (www.bandangels.com). Marc Weill of City Light Capital and Randy Hawks of Claremont Creek Ventures will join the ShotSpotter board of directors.

This is the company’s Series B Preferred Stock financing and the first equity financing subsequent to last year’s merger with Centurist Systems, in which the company acquired key intellectual property behind the wireless sensor it is now shipping. The investment marks a record for the industry, and further validates the vital importance of this technology for law enforcement, homeland security and military customers, as well as solidifies ShotSpotter’s leadership position in the field.

“We spent significant time researching the market and believe that ShotSpotter is best positioned to capitalize on the tremendous market opportunity,” said Marc Weill, Chairman of City Light Capital. “We trust that ShotSpotter will play an essential role in enabling our government and military to protect and defend here and abroad.”

With twelve installations around the country and several more planned for 2006, ShotSpotter now leads the market in deployments, arrests, weapons confiscations and lives saved. Its customers include the Federal Bureau of Investigation (FBI), the National Law Enforcement and Corrections Technology Center (NLECTC), the US Attorney’s Office (USAO), and numerous state and municipal governments. The company also has several contracts under negotiation with the US military.

“This financing gives us the strength we need to expand our operations, the freedom to look at strategic options and opportunities, and the credibility of real financial staying power,” said James G. Beldock, ShotSpotter President and CEO. “But for us the true benefit comes from the caliber of the investors we have attracted and their deep understanding of the law enforcement and homeland security arenas.”

“I have spent two decades working in and with law enforcement, so I know the value that ShotSpotter technology offers police and other first responders,” said  Randy Hawks, Managing Director of Claremont Creek Ventures. “We’re excited to participate in the growth of this business, especially as it continues to expand beyond its stronghold in law enforcement and homeland security into the military and defense markets.”

“It is very gratifying to see ShotSpotter transition to its next growth phase,” said Gary Lauder, Managing Director of Lauder Partners. “ShotSpotter had been bootstrapping itself for eight years prior to receiving its first venture funding in 2004. Since then it has innovated quickly, tripled the size of its customer list, and produced more than twice the revenue it had over its entire prior existence. Those sales have already turned into lives saved or improved.”

In the two years since the company raised its first investment capital, ShotSpotter has expanded to become the acknowledged leader in the field of gunshot and weapons-fire detection and location technology. With the largest number of deployed systems and customers in the industry, ShotSpotter is now applying the expertise it gained from building systems hardened for use in complex urban environments to the military and defense sector, while it maintains its lead in the law enforcement and homeland security markets. The company’s core gunshot location system delivers three types (“layers”) of protection by deploying sensors on individuals, vehicles, and buildings, all capable of interoperating wirelessly and collaborating to calculate solutions, report incidents, and provide situational awareness to first responders, soldiers or commanders. Through integration with video cameras and other surveillance systems, customers receive both audio and video in real time and are able to gain unprecedented forensic knowledge of the circumstances surrounding a crime or attack.

Recently, the ShotSpotter Rapid Deployment System was used in a highly successful deployment in Gary, IN, where, combined with immediate police response, it produced fifteen multiple arrests and the city’s largest ever weapons seizure—in a single evening.

In longer deployments, ShotSpotter systems have helped police reduce violent crime by as much as 31% ( North Charleston, SC), and reduce gunfire rates by 70 to 80% in several west coast cities, including Los Angeles.

During the winter of 2003-2004, the FBI deployed ShotSpotter systems in and around Columbus, Ohio, where the systems were credited with materially assisting the FBI and the Franklin County Sheriff’s department in the capture of the I-270 highway sniper.

About City Light Capital
City Light Capital is a money management and business development firm based in Greenwich, Connecticut. City Light combines near-term cash flow from business development with mid-term cash flow from money management and longer-term cash flow from strategic private investing in multiple sectors to provide diversified returns for investors. The firm has partnered with operating companies in security, energy and media that provide complementary strengths, such as domain expertise, testing and business development relationships. City Light’s investments include security industry companies such as Cross Match, ShotSpotter, Arxceo, Rotomotion and Enforsys.

About Claremont Creek Ventures (www.claremontvc.com)
Based in Oakland, CA, Claremont Creek Ventures is a venture capital firm investing in early-stage information technology companies, particularly in the San Francisco Bay Area. The firm’s three principals are all experienced managers and proven venture investors, and share a deep commitment to helping entrepreneurs build successful companies from the ground up. They focus on IT sectors where they have deep domain expertise, including – but not limited to – mobility, healthcare and security markets.

About Lauder Partners (www.lauderpartners.com)
Lauder Partners is a Silicon Valley based venture capital firm that has been investing in the information technology field for 20 years. The firm specializes in Internet/telecom-related investments and cable TV-related technology.  Notable investments include: ICTV, Hybrid Networks (HYBR), WebTV, Terayon (TERN), HNC Software (HNCS), Zip2, CitySearch (TMCS), About.com (BOUT), Goto.com (OVER), Vivid Technology (acquired by CCUR), Compatible Systems and V-Bits (both acquired by Cisco), and more than a dozen other private companies.

About ShotSpotter, Inc., (www.shotspotter.com)
ShotSpotter, Inc., the leading developer of gunshot location systems and technology, is based in Santa Clara, CA. ShotSpotter’s flagship product, which detects gunfire across large urban areas using a small number of inexpensive and easy-to-deploy sensors, currently protects the citizens of cities nationwide, from Los Angeles, CA to Washington, DC. Its products recently assisted the FBI and the Franklin County Sheriff’s Office in identifying and capturing the Columbus, OH highway sniper suspect. In 2000, ShotSpotter was honored for its technology vision and leadership when got won the Computerworld Smithsonian Laureate Award, having been nominated by William H. Gates, chairman and chief software architect of Microsoft Corporation, and the Smithsonian added its technology to the museum’s permanent collection. With technology covered by numerous patents, the company also offers products to the law enforcement, homeland security and military markets. ShotSpotter technology has consistently produced arrests and weapons confiscations nationwide and has helped reduce gunfire and crime rates in cities that deploy it.

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