ALISO VIEJO, Calif., June 16, 2005 -- SiliconSystems, Inc., the world leader in industrial-grade solid-state storage solutions engineered exclusively for the enterprise system OEM market, today announced the completion of its oversubscribed Series B funding round. The Series B raise consisted of new investors Rustic Canyon Partners and Shepherd Ventures joined by Series A investor Miramar Venture Partners.

"SiliconSystems is clearly emerging as the industry leader in the rapidly growing market for solid-state storage technology used by enterprise system OEMs," commented George Kenney, managing partner, Shepherd Ventures. "The company has made phenomenal progress since its founding in 2002. Revenues continue to exceed projections and customer response to its patented and patent-pending SiliconDrive technology has been overwhelming. My firm is highly enthusiastic about its involvement with SiliconSystems as it moves forward to become the dominant supplier in this market."

"Based on a single round of financing, SiliconSystems was able to deliver its first generation of products and capture significant business from the major incumbents in its space," said John Babcock, partner, Rustic Canyon Partners. "The company’s impressive performance to date is a testimony to its resourcefulness and focus. SiliconSystems’ customers demand high performance, high reliability products with responsive support, which are the fundamental tenets driving this company. We are extremely pleased to add this team to our portfolio and we look forward to supporting their continuing success."

Michael Hajeck, CEO of SiliconSystems stated that the Series B round of financing validated the company’s exceptional progress since its founding. "We are very proud to have Rustic Canyon Partners and Shepherd Ventures participate in our Series B round, as well as to have Miramar Venture Partners return as a Series B investor," said Mr. Hajeck. "Our second round of financing was oversubscribed and we were able to secure more funding than planned due to the strong interest in our company by the venture capital community. Our investors recognize that we have an outstanding team, leading technology, and a unique business opportunity. With the addition of our new investment partners, we can now accelerate our growth at an even more aggressive rate."

Mr. Hajeck stated that the Series B funding would be used to pursue key research and development initiatives as well as expand global sales and marketing programs.

With the completion of the Series B round, SiliconSystems announced that Fred Lawrence will become chairman of the board. Mr. Hajeck stated that Mr. Lawrence’s appointment as company chairman is ideally timed in terms of the company’s transition to market leadership based on growth in customer base and technology development. "Mr. Lawrence’s impressive record of business leadership and experience is a significant asset for our company," said Mr. Hajeck. Mr. Lawrence previously served as chairman, CEO and president of Adaptive Broadband Corp., ComStream Corp., and ADC, Inc., as well as serving on numerous boards of for-profit and non-profit organizations. John Babcock, partner, Rustic Canyon Ventures, will join Mr. Lawrence and Bob Holmen, partner, Miramar Venture Partners, on the board of SiliconSystems.

About SiliconSystems
SiliconSystems is the world leader in industrial-grade solid-state storage solutions engineered exclusively for the high performance, high reliability, multi-year product lifecycle requirements of the Enterprise System OEM market. The company’s patented and patent-pending SiliconDrive™ technology meets the rigorous demands of applications in the netcom, military, industrial, interactive kiosk and medical markets. SiliconSystems is based in Aliso Viejo, California. Additional company and product information is available on the company’s website at www.siliconsystems.com.

About Miramar Venture Partners
Miramar Venture Partners targets technology companies with high growth potential in communications, networking, information storage, processing, security, next generation software, and application services. It seeks companies that are as market-driven as they are technology-driven, have proprietary and defensible technology positions yielding a competitive edge and barrier to entry, and are led by management teams with the experience, dedication and a high sense of urgency to succeed at their endeavors.

About Rustic Canyon Partners
Rustic Canyon Partners is a leading West Coast-based investment firm, investing primarily in venture capital stage and middle-market companies positioned for strong growth. The firm is based in Southern California and currently manages approximately $700 million in two investment funds, Rustic Canyon Ventures and Rustic Canyon Ventures SBIC. The firm focuses on private, growth-stage companies that capitalize on opportunities created by technology change, market evolution, regulatory shifts, or other factors. Rustic Canyon Partners provides the expertise and strategic insight that prudent investment decisions require, and the guidance necessary for sustained growth and superior returns.

About Shepherd Ventures
Shepherd Ventures' objective is to generate significant capital appreciation through a balanced portfolio of first and later-stage equity investments in astutely selected, wisely shepherded high technology growth companies. The firm’s focus is on information technology and life sciences companies characterized by passionate and qualified management teams, compelling value propositions and extraordinary upside potential. Shepherd Ventures concentrates on companies located in Southern California and the Southwest, particularly San Diego, where the firm believes there is a significant shortage of venture capital.


Agency Contact:
Annette Keller
Keller Communication
(949) 640-4811
annettekeller@sbcglobal.net


Company Contact:
Gary Drossel
SiliconSystems, Inc.
(949) 900-9414
gdrossel@siliconsystems.com