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Chicago-ITEC Continues To Advance Entrepreneurs; Recent and Prior Investments Show Growth and Potential

CHICAGO--Nov. 1, 20037, 2003--The Chicago Illinois Technology Enterprise Center (Chicago-ITEC) today announced three new additions to its portfolio of life sciences and technology companies. An investment of $25,000 was made in All Cell Technologies, in Starthis, and in Mobitrac, to help commercialize their respective innovative technologies. Chicago-ITEC also reported substantial progress from existing portfolio companies, Ace Education, NewNeural and ZelleRx.

All Cell Technologies has licensed a novel thermal management technology that uses phase change material to develop a rechargeable Lithium-ion battery for electric and hybrid vehicles. The company's founders, Dr. Said Al-Hallaj and Dr. J. Robert Selman, have licensed this technology from the Illinois Institute of Technology. The company hopes to commercialize a more efficient and cost effective Lithium-ion battery that can be used for more applications than traditional sources. The company will use the investment to strengthen corporate development and produce a working prototype.

Starthis develops the iTapestry Suite of middleware to provide connectivity from the enterprise level to plant floor automation controls in real-time. Subsequent to Chicago-ITEC's investment, Starthis was awarded a three year, $2 million grant from The U.S. Commerce Department's NIST Advanced Technology Program (NIST/ATP). Starthis will use the investment and the grant funding to develop new products to enable agile manufacturing that allow engineers to design and reconfigure control systems "on the fly." Additionally, researchers at the University of Illinois at Chicago will investigate and assist in the development of the algorithms that will underlie these new agile manufacturing methods, as a subcontractor on the grant.

Mobitrac is commercializing an enterprise software package for mobile fleet management. The base technology was developed by Dr. Ouri Wolfson and a team of students at the University of Illinois at Chicago and funded by the National Science Foundation and U.S. Army Research. Unlike current static routing systems, Mobitrac integrates predictive technology that allows for sophisticated insight into the future location of an object, which allows potential users to make business decisions before missed appointments become service errors. Led by CEO Michael Liddell, Mobitrac hopes to improve productivity and reduce costs for package pick-up and delivery businesses, hazardous materials haulers, private service fleets and less-than-truck-load carriers. The company will use the investment to expand their engineering and sales operations in Illinois.

"Chicago-ITEC is available to provide its portfolio companies the necessary support each company will need to transform their technologies into revenue generating products," said Kathryn Hyer, executive director of Chicago-ITEC. "Chicago-ITEC's support of and investments in these companies demonstrates how assistance in building new, strong technology-based companies leads to economic growth and more jobs in the State of Illinois."

Prior to the recent investments, Chicago-ITEC provided assistance to and invested in three area start ups - Ace Education, NewNeural and ZelleRx. Since receiving these funds in March, all three companies have made significant progress.

Ace Education, in collaboration with Boeing, has been working to solidify its intellectual property position for its interactive virtual reality training tools for the healthcare industry. The company has continued to move its sales and marketing efforts forward and is in advanced discussions with several major learning institutions in its effort to drive manufacturer demand through key end users.

NewNeural, a start-up based on technology from the University of Illinois at Chicago, is preparing to close its angel round of financing to advance development of an adult stem cell therapy treatment for neurological disorders. Since March, NewNeural has expanded its management team and added members to its board of directors. The company continues to attract sustained attention from foremost thought leaders in the field of neurology.

ZelleRx continues to progress through the next steps in its corporate development. The company has expanded its management team and scientific advisory board. Additionally, the company has strengthened its intellectual property portfolio on its NK-92 cellular therapy for cancer treatment. ZelleRx continues to reach milestones in clinical trials both in the U.S. and Europe.

In an effort to further promote the formation and retention of technology driven companies, Chicago-ITEC collaborated with Illinois' seven other ITEC programs to conduct a SBIR phase I workshop for approximately 200 individuals from more than 150 companies, research institutions and universities. Chicago-ITEC alone has provided in-depth assistance to more than 45 companies seeking SBIR Grants and helped submit 11 technical proposals.

Since its launch, Chicago-ITEC has provided 84 high-tech companies in the Chicagoland area with a wide variety and range of business development services. Those companies interested in an investment must participate in an evaluation process that involves input from several sources, including industry experts, venture capitalists, and the advisors of the Chicago-ITEC. Interested entrepreneurs should contact Ajith Joseph at the Chicago-ITEC, 312-413-4663.

About Chicago-Illinois Technology Enterprise Center (ITEC)

Chicago-ITEC, is part of a statewide network of entrepreneurial development centers funded by the State of Illinois' Department of Commerce and Economic Opportunity. The mission of Chicago-ITEC is to stimulate development of advanced technology and accelerate growth of the technology business sector in Chicago. The Chicago-ITEC is operated by IllinoisVENTURES, L.L.C. on behalf of its sponsoring partners, which include the Illinois Institute of Technology, the University of Illinois, the University of Illinois at Chicago, and the Illinois Medical District, including the Chicago Technology Park. IllinoisVENTURES, L.L.C., is an entity created by the University of Illinois to help build technology companies. More information is available at www.chicago-itec.org or by calling 312-413-4662.