UNH LAUNCHES FIRST SPIN-OUT COMPANY

DURHAM, N.H. --Taking research out of the laboratory and into the marketplace, the University of New Hampshire has launched its first spin-out company. Chaoticom will introduce new technology, called Chaotic Compression Technology (CCT), for data compression and encryption.

Chaotic Compression Technology (CCT), the brainchild of mathematics professor Kevin Short, has attracted funding from venture capitalists who have backed scores of successful startups. "This is a fundamentally new technology," says Short, whose research, in very simple terms, involves looking for patterns in seemingly random occurrences. "Chaotic systems appear random," he explains, "but if you look at them the right way, they are well behaved."

"Research at the University of New Hampshire has entered a new era," says UNH President Joan Leitzel. "The university is now positioned to realize the commercial potential of new technology and to share those rewards with the faculty who invest years of their lives in this research. The fact that we have attracted sophisticated venture funding to this project bodes well for the future funding of this type."

The investors include members of the eCoast Angel Network led by George McQuilken of Portsmouth, New Hampshire, who will also serve as Chairman of the Board. McQuilken has financed and managed a number of notable high-tech startups including RSA Security, and is currently the chief executive officer of TruExchange, a leading provider of softwareÊfor business-to-business transactions.

The other major investor is Kodiak Venture Partners, a seed and early-stage high-technology venture firm with $300 million under management. Kodiak co-founder and general partner, Jim Furneaux, will represent his firm on the Board of Chaoticom. Furneaux has financed the startup of Compaq Computer, Aironet Wireless Communications, and many other high tech companies. He was the founding CEO of Chrysalis Symbolic Design and served as the CEO of Etna, New Hampshire-based Spectra, Inc. The university will be the major shareholder in Chaoticom.

"The upscale potential of Professor Short's technology is tremendous," says McQuilken, the lead investor. "If we can extend Kevin's research, and prove it in practice, Chaoticom could become a major force in the networking and communications field." McQuilken hopes to raise up to $25 million and envisions an IPO in about two-and-a-half years. "But first we have to build a product and build a company," he says.

University officials expect that innovations such as CCT will bring UNH to the forefront in several fields. "The University of New Hampshire has arrived as a research institution," says Donald Sundberg, vice president for research and public service. "More and more, universities are spinning out companies to capitalize on the commercial value of new technology and reward innovation. It has become a natural course of events. UNH now has the framework to identify and manage intellectual property and bring it to its highest potential."

For more information, contact Bob Dalton in the UNH Office of the Vice President for Research and Public Service, 603-862-1997.

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