Synchrony, Inc. Closes $5 Million Series A Investment

ROANOKE, Va.--Feb. 21, 2006--Synchrony, Inc., a Roanoke County-based company specializing in the development and production of magnetic bearings, power, and control systems, announced today that it has closed a $5,000,000 Series A round of investment, provided by NewVa Capital Partners, LP, and affiliates of Third Security, LLC, all of Radford, Virginia.

The financing and newly established relationship with Third Security, LLC, which manages NewVa Capital Partners, LP, will provide Synchrony the means to develop and market its technology with strategic partners worldwide as well as provide for certain development and support services.

"Our innovative technology is embedded in next-generation products for the aerospace, defense, and energy sectors," said Dr. Victor Iannello, President, CEO, and Chairman of the Board of Directors of Synchrony, Inc. "This investment is an incredible opportunity for us to scale up our operations and leverage the technology to reach its full market potential. Our mission is to be the global leader in magnetic control technologies. The entire organization shares my excitement."

"We are delighted to announce this investment on behalf of NewVa, our second significant investment from this partnership in a regional firm," commented R.J. Kirk, Third Security's Chairman. "We believe that Synchrony possesses a significant technology lead in the field of magnetic bearings and control technologies and is poised to exploit that technology on a worldwide basis. That these high-tech engineering solutions were developed locally demonstrates that this region is capable of producing world class technologies. Synchrony is precisely the type of business that NewVa was founded to invest in, and it is chiefly because of the vision of Carilion and the Virginia Tech Foundation that we are in a position today to announce this investment."

In addition to Dr. Iannello, Synchrony's Board of Directors will include John Williamson, President, CEO, and Chairman of the Board of RGC Resources, Rob Patzig, Senior Managing Director of Third Security, Ted Melnik, President of Novozymes Biologicals, Dr. Dan Sable, President and CEO of VPT, and Matthew Crisp, Business Development Associate of Third Security.

Synchrony has been located in Roanoke County since its establishment in 1993. In May 20, 200605, the company announced a relationship with Rolls-Royce to develop the electric power system for a new supersonic aero engine. "The capital obtained in this round of financing allows us to continue to innovate and develop new products that exploit our technical advantages, while providing the resources to meet the increasing demand for reliable and efficient power conversion systems," explained Dr. Iannello. Synchrony currently has eleven employees and expects to double its headcount in the next several years. It has begun a construction project to expand its existing facility to 11,000 square feet, where development and production activities will occur.

More information about Synchrony can be obtained by visiting the company's website, www.synchrony.com, or by contacting Mr. Pat Risen, Director of Business Development, (540) 989-1541 x103, pat.risen@synchrony.com.

NewVa Capital Partners, LP is a private equity/venture capital enterprise that makes early stage investments in companies in the NewVa region of southwestern Virginia. More information is available at the fund's website, www.newvafund.com.

Third Security, LLC is an independent private investment and advisory firm formed in 1999 to manage investments in public and private companies. The firm leverages its people, expertise and capital to guide investments and companies to higher levels of performance. More information is available at the firm's website, www.thirdsecurity.com.