MagneMotion Closes $3 Million in Mezzanine Round of Funding

(Press release, September 26, 2006)

ACTON, Mass.--(BUSINESS WIRE)--MagneMotion, a developer and 
manufacturer of assembly automation, material handling and 
transportation solutions using electro-magnetic technology, today 
announced it has secured a $3 million mezzanine round of funding from 
new and existing investors. The round is led by Massachusetts Capital 
Resource Company (MCRC). MagneMotion received $2 million in equity 
and $1 million in subordinated debt financing; proceeds will be used 
to fuel the rapid growth and market penetration of its linear 
synchronous motor (LSM) and core development of its magnetic 
levitation (MagLev) technologies.

MCRC is pleased to be part of MagneMotion's continued growth, said 
Ken Lavery, vice president of MCRC. Massachusetts is home to a 
number of exciting companies with innovative and compelling business 
models and products. MagneMotion has distinguished itself through the 
implementation of its electromagnetic technology on projects for high 
profile government, manufacturing and transportation systems 
customers, and we look forward to working with its strong management 
team to further expand the business.

Specifically, the funding will be used to expand market penetration 
and enhance MagneMotion?s product offerings. Recent initiatives 
include the development of an urban MagLev demonstration system in 
cooperation with the Federal Transit Administration and an LSM-based 
weapons transport elevator for the U.S. Navy. Additionally, 
MagneMotion's QuickStick LSM propulsion and control system 
revolutionizes the assembly automation and material handling market 
as a faster, cleaner and more advanced alternative to conventional 

"MagneMotion's penetration into key markets validates the company's 
position as an industry leader", said Mike Hannon, chief financial 
officer of MagneMotion. "We are excited to work with MCRC to assist 
our continued product development and further secure and maintain 
relationships with key constituencies."

About Massachusetts Capital Resource Company (MCRC)

Massachusetts Capital Resource Company is a limited partnership 
privately owned and funded by Massachusetts-based life insurance 
companies. MCRC is a source of risk capital for Massachusetts 
business and invests across the entire range of business development 
financings, with a particular emphasis on growth capital. More 
information can be found at

About MagneMotion

MagneMotion provides the world's most advanced electromagnetic 
transportation, assembly and logistics solutions. The company's 
renowned scientists have captured the power of Linear Synchronous 
Motor (LSM) and MagLev technology to create faster, more efficient, 
longer lasting and more affordable automated manufacturing and 
transportation systems. LSM technology underpins the company's 
QuickStick, a breakthrough in powering manufacturing and logistics 
systems, as well as a new class of elevators developed for the U.S. 
Navy. Organizations ranging from government agencies to major 
consumer goods companies and value added resellers rely on 
MagneMotion for superior results.

Last modified: September 26, 2006