FIVE STAR TECHNOLOGIES ANNOUNCES $7.1 MILLION IN NEW VENTURE FUNDING

New capital to expand submicron and nanoscale powder and dispersion capabilities to electronic materials markets

Cleveland, Ohio. November 30, 2006.  Five Star Technologies said today that it has closed an investment round of $7.1 million dollars led by Morgenthaler Ventures.  Other investors include CTTV Investments (ChevronTexaco), Early Stage Partners, IndustrialTechnologyVentures, and Reservoir Venture Partners.

Five Star Technologies is a supplier of high-performance inks and dispersions for use in electronics packaging and assembly operations.  Using its patented Particle Management Technology, Five Star creates precision products that fill a missing link in the assembly of high-performance electronic components. Five Star dispersions of conductive, sub-micron and nanoscale particles offer unparalleled stability and uniformity that helps customers significantly improve electrical and thermal performance.  Citing this capability, Lux Research recently described Five Star as having the "top commercial viability" of 136 nanotechnology startups worldwide.,

Gerry Weimann, president and CEO of Five Star, said the Company plans to use the funds to continue development and commercialization of materials. "Based on the reaction of current and potential customers at recent industry shows, we believe Five Star can add immediate value to existing electronics production lines, as well as help make possible the next generation of high-volume printable electronics that will be found in displays, RFID tags, and other applications."

According to Greg Blonder, a member of the Five Star board of directors and a general partner at Morgenthaler Ventures, “Five Star Technologies represents one of those rare technologies that, after years of incremental development, seem to come out of nowhere to transform other industries.  We are delighted with the commercial progress the Company is making.”

Morgenthaler, CTTV Investments, Early Stage Partners, and Industrial Technology Ventures invested in the company in previous financings.  In this round, they are joined by Reservoir Venture Partners in Columbus, Ohio.  Curtis Crocker, managing partner of Reservoir stated, "Reservoir chose to invest in Five Star because of its deeply experienced management team and the Company’s unique technology.  We expect this funding to accelerate Five Star’s growth in the electronics market by supporting its customers and producing dramatic performance improvements of conventional materials."

About Five Star Technologies

Five Star Technologies is a supplier of high-performance powders and dispersions for use in semiconductor and microelectronic packaging, display and ceramic component applications.  Using its patented Particle Management Technology, Five Star creates precision dispersions of a wide range of materials (metals, oxides, nitrides, carbon fibers, etc.) in various organic media.  Its products exhibit unparalleled rheological stability and exceptional particle size control, enabling customers to produce materials with next-generation performance profiles.  For more information, please visit Five Star Technologies’ website at www.fivestartech.com.

About Morgenthaler Ventures

Morgenthaler, a leading venture capital and buyout firm  www.morgenthaler.com, was founded in 1968. The firm focuses on early-stage technology investments as well as middle-market management buyouts. It has funded some 200 companies in its 37-year history, including two of the last decade's highest performing IPOs: Microchip Technology (1993) and Premisys Communications (1995). Current representative portfolio investments include such component and materials companies as Lamina Ceramics, NanoOpto, Peregrine Semiconductor, and Paratek Microwave. With its $450-million fund raised in 2005, the firm has a total of approximately $2.5 billion under management.

About CTTV Investments

ChevronTexaco is an integrated, global energy company that operates in over 180 countries and employs more than 53,000 people worldwide.  In addition to supplying global energy, ChevronTexaco is involved in numerous advanced clean energy and fuel technologies.  ChevronTexaco, through CTTV Investments, the venture capital arm of  Chevron Technology Ventures (http://technologyventures.chevron.com/), invests in and pursues commercialization of a broad spectrum of energy related technologies and is also an active venture capital investor.  Commercialization and investment activities currently include hydrogen systems, advanced batteries, fuel processing and fuel cell related technologies and the development of hydrogen infrastructure solutions.  

The Industrial Technology Ventures, L.P. (http://www.cordovaventures.com/funds/itventures.html ) is a $50 million Cordova Ventures affiliate fund focused on growth stage capital investments in companies with strong management teams and proprietary technologies that create significant bottom-line value within established industries.  Cordova Ventures is a private equity firm with over $300 million under management, founded in 1989 and headquartered in Atlanta, GA. Cordova Ventures is the managing member of the General Partner of Industrial Technology Ventures.

About Early Stage Partners

Early Stage Partners LP (http://www.esplp.com/index.html) is an early stage venture capital fund based in Cleveland, Ohio. The company invests primarily in promising opportunities in the life sciences, polymers and advanced materials, information technology and advanced manufacturing.  The company's principals have over ninety years combined experience in early stage company formation and development, with a significant network of relationships throughout the United States that can be used to attract management, develop strategic partnerships, and provide later stage funding.

About Reservoir Venture Partners

Reservoir Venture Partners (http://www.reservoirvp.com/ ) is a venture capital firm bringing capital, business building acumen, and a strong network of advisors to entrepreneurs and their teams.  The firm targets investments in seed and early stage technology companies and is located in Columbus, Ohio.  Reservoir Venture Partners invests in high-potential companies with strong management teams, a large and growing market, defensible or proprietary technology and a credible plan for profitability, maturation and liquidity.