Investment will Further the Development of Wi-Fi™Active Radio Frequency Identification (RFID) for the Mobile Resource Management Market

Oakland, Calif. – January 30, 2006 – G2 Microsystems Inc., a developer of integrated circuits for the Mobile Resource Management (MRM) market, today announced that Siemens Venture Capital (SVC), a subsidiary of Siemens AG, has made a strategic investment in G2 Microsystems. Siemens’ investment will advance G2 Microsystems’ research and development efforts in the design of ultra low-power, active MRM chips for asset tracking.  Terms of the funding agreement were not disclosed.

“Siemens is pleased to make this strategic investment in G2 Microsystems, and believe their technology will greatly improve the way companies globally track and monitor assets,” said Todd Jaquez-Fissori, Investment Partner, Corporate Fund, Siemens Venture Capital. “We think wireless, RFID and sensor technologies offer significant upside market opportunities in multiple vertical applications. By embedding G2 Microsystems' technology, a company can extend their product leadership and offer new services to their customers."

“Siemens Venture Capital’s financial investment in our company is yet another confirmation that our technology offers significant advantages in the fast-growing MRM market,” said John Gloekler, Chief Executive Officer and President of G2 Microsystems.  “We are excited to have Siemens as one of our investors as their leadership position in providing solutions to the asset tracking, telemetry and industrial automation markets will greatly enhance our ability to deliver more sophisticated MRM solutions to these markets.”

Mobile Resource Management (MRM) is a rapidly growing market that enables businesses to monitor, track and manage assets either within a facility or throughout a supply chain.  G2 Microsystems is developing a range of ultra low-power, active MRM chips that leverage the widely deployed Wi-Fi™ (IEEE 802.11) network, resulting in a low Total Cost of Ownership and minimal back-office integration.  These system-on-chip (SoC) solutions provide the right balance of cost, power, functionality, and size to meet the demanding asset tracking (otherwise known as RFID) and monitoring requirements in all industries including healthcare, automotive, transportation, government, biopharmaceutical, oil, gas, and chemical.

About G2 Microsystems
G2 Microsystems designs and markets ultra low-power, active MRM system-on-chips (SoCs) that provide ubiquitous asset tracking leveraging existing wireless IEEE 802.11 network infrastructures.  Our SoCs significantly reduce the Total Cost of Ownership of deploying sophisticated Real-Time Locating Systems (RTLS) or asset tracking services so that businesses can more efficiently manage their mobile resources.   

G2 Microsystems is a privately-held semiconductor company.  Major investors in the company include UPS Strategic Enterprise Fund, Starfish Ventures and DB Capital Partners, the private equity and venture capital arm of Deutsche Asset Management (Australia) Ltd. G2 Microsystems can be contacted at their US corporate headquarters in Oakland, Calif. at +1-510-435-0138 or at www.g2microsystems.com.

About Siemens Venture Capital

Siemens Venture Capital (SVC) is the 700 million euro corporate venture organization for Siemens AG, one of the largest global electronics and engineering companies, with reported worldwide sales of 75,4 billion euro in fiscal 2005. The goal of SVC is to identify and fund investments in emerging and innovative technologies that will enhance the core business scope of Siemens, particularly in Information and Communications, Automation and Control, Medical Solutions, Automotive Technology and Transportation Systems, Power, and Lighting.

To date, SVC has invested some 700 million euros in far more than 100 start-up companies and 30 venture capital funds mainly in the U.S., Europe and Israel, thus playing a key role in the global network of innovation. SVC is located in Germany (Munich), in the U.S. (San José, CA and Boston, MA) and is active through Siemens regional units in Israel and China.