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VENTUREWIRE

Thursday, June 10, 2004

o Optimal Technologies Seeks Series B Prior To Product Launch

Benicia, Calif. -- As it prepares for a commercial product launch later

this year, Optimal Technologies, a developer of software to analyze and

manage power systems, is looking to raise $3.5 million to $5 million in

Series B financing, Chief Executive Roland Schoettle told VentureWire.

Optimal raised its first outside round about a year ago. Law Investments

led the $3.5 million round that also included an individual investor. The

company seeks a new lead for the upcoming round. Proceeds will be used to

take pilot programs to full commercialization, Schoettle said.

The company's software, Aempfast - which stands for Advanced Energy

Management and Power Flow Analysis System Technology - allows modeling

that represents complex electric power systems. It is a new mathematical

approach to operating large-scale power grids, Schoettle said.

Using Optimal's software, power grids run better and the opportunity for

blackouts is lessened, Schoettle said. "We believe the August 14 blackout

wouldn't have happened with our technology," he said, referring to last

year's power failure that darkened much of the Midwest, the Northeast and

Ontario.

Optimal's technology offers the potential for enhancements and is faster

and more accurate than services from large-scale grid competitors such as

GE Co., ABB, Siemens Corp., and Power Technologies Inc., he said.

With Aempfast, Optimal offers diagnostic, troubleshooting, and tune-up

services. Customers include utilities, ISOs, RTOs, transmission

authorities, distribution companies, independent power producers, power

marketers, and system designers and engineers.

Surefast is Optimal's hardware/software platform for energy management and

automation that enables local grids to manage their own load, Schoettle

said. Customers include utilities, municipalities, energy services

companies, electricity retailers, telecom retailers, broadband services

retailers, and end-users of electricity.

Optimal's beta customers include the State of California Energy Commission

and the California Independent System Operator. Large utilities are also

looking at Optimal's pilot programs. The products should be available by

the end of the year, Schoettle said.

Schoettle said the technology is optimal for congested networks and so

potential future applications include traffic, pipelines, water systems,

sewage, and military exercises.

The Benicia, Calif.-based company has 12 employees and is hiring in

technical software and hardware.

http://www.otii.com

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