3VR SECURITY TAKES $15 MILLION TO DELIVER SEARCHABLE SURVEILLANCE TO THE $7.2 BILLION CONVERGED VIDEO MANAGEMENT MARKET

DAG Ventures, Kleiner Perkins, Caulfield & Byers Leads Round, VantagePoint Ventures and In-Q-Tel Fuel Innovation in Physical Security

San Francisco, CA — October 9 , 2006 — 3VR Security, Inc., the pioneer in searchable surveillance, today announced that it has raised $15 million at a significant increase in valuation, in Series C funding led by DAG Ventures. The round will fuel 3VR's leading innovation in the converged video management market, estimated by industry analysts to reach $7.2 billion by 2008.

DAG Ventures, a Palo Alto, California based venture fund brings depth in cable TV, infrastructure, media, and wireless industries to the firm. The round also includes follow-on investments from VantagePoint Venture Partners, one of the largest venture capital firms in the United States, In-Q-Tel, a private, strategic venture firm funded by the Central Intelligence Agency (CIA) and the U.S. Intelligence Community, and Kleiner Perkins, Caulfield & Buyers, one of the leading technology venture funds.

"Searchable surveillance is a breakthrough innovation with the potential to improve physical security by an order of magnitude," said Greg Williams, General Partner at DAG Ventures. "The global appetite for sophisticated technology that improves security is increasing at a never-before-seen rate. Through their innovative approach of treating surveillance video as structured data, 3VR has a unique ability to make surveillance video searchable-which unlocks broad potential for improvements across the security market. We are pleased to be investing in technology that will make a difference in the world in which we all live."

3VR Security has recently released 3VR version 5.0, the industry's first video surveillance platform to federate facial surveillance data enabling face watch lists, alerts and searches across distributed systems. The 3VR system is being used by major banks, government agencies, hotels and corporations.

"Effective security depends on the availability and usefulness of critical information captured in video," said Stephen Russell, co-founder and CEO of 3VR Security. "3VR has pioneered new methods of using video to prevent loss, protect people, and expedite investigations across financial-institutions, homeland security, hospitality and travel. We look forward to driving growth in this space and are pleased to be working with DAG."

About 3VR Security, Inc.: 3VR Security, Inc. is the leading developer of intelligent video management systems (IVMS). Pioneering a new standard in video security, 3VR systems combine traditional video recording with powerful facial biometrics and analytics to make surveillance searchable. With 3VR, customers can now instantly search and program alerts for specific people, objects, and activity. These advances provide new ROI by intelligently using video to stop losses, speed investigations, and improve guard productivity. 3VR systems are simple to use and install and can scale up to thousands of cameras spanning across geographies.

3VR was recently named one of Red Herring's Top 100 private technology companies, Security Product of the Year by Frost & Sullivan, and Product of the Year from the Security Industry Association in both the 2005 and 2006. Please visit www.3vr.com.

About DAG Ventures: DAG Ventures is a venture capital partnership investing in and helping outstanding entrepreneurs create leading, long-term companies across a range of markets. With roots from the 1980's in cable TV, infrastructure, media, and wireless industries, the partnership today is privileged to work with world-class entrepreneurs as they build tomorrow’s leaders in the information technology, energy, and life science sectors. www.dagventures.com

About In-Q-Tel: In-Q-Tel is a private, independent, not-for-profit venture group established by the CIA. Launched in 1999, our mission is to identify and invest in companies developing cutting-edge technologies that serve United States national security interests. Working from an evolving strategic blueprint defining the Intelligence Community's critical technology needs, we engage with entrepreneurs, established companies, researchers, and venture capitalists to deliver technologies that pay out in superior intelligence capabilities for the CIA, DIA, FBI, NGA, and the larger Intelligence Community (IC). In-Q-Tel concentrates on three broad commercial technology areas: software, infrastructure and physical and biological materials. To date, In-Q-Tel has engaged with nearly 90 companies and delivered more than 100 technology solutions to the IC. To learn more about In-Q-Tel, please visit www.in-q-tel.org.

About KPCB: Since its founding in 1972, KPCB has backed entrepreneurs in 450 ventures, including AOL, Align, Amazon.com, Citrix, Compaq Computer, Electronic Arts, Genentech, Genomic Health, Genprobe, Google, Hybritech, IDEC Pharmaceuticals, Intuit, Juniper Networks, Netscape, Ligand Pharmaceuticals, Lotus, Nuvasive, Sun Microsystems, Symantec, Verisign and Xilinx. KPCB portfolio companies employ more than 250,000 people. More than 150 of the firm's portfolio companies have gone public. Many other ventures have achieved success through mergers and acquisitions. www.kpcb.com

About VantagePoint Venture Partners: VantagePoint Venture Partners is one of the nation's largest venture capital firms that actively works with management teams and its strategic partners to build technology leaders. As an active multi-stage investor, the Firm provides funding and resources for all stages of a company's lifecycle from seed round through late stage and privately negotiated investments in public companies. VantagePoint is based on a full-service 'Partner-Team' approach that provides entrepreneurs with a blend of technology, venture capital, operations, and corporate-finance expertise. As hands-on investors, the Firm is focused on technology investments in the CleanTech, Communications, Healthcare, Semiconductor, and Software and Internet sectors. www.vpvp.com