Arctic Sand Closes $9.6M in Series A Funding

  Arctic Sand Closes $9.6M in Series A Funding

GE-ConocoPhillips-NRG Energy joint venture; Dialog Semiconductor; and
Financial Investors Back MIT Spin-off Targeting Energy Savings by Transforming
Power Conversion

Business Wire

CAMBRIDGE, Mass. -- January 14, 2013

Arctic Sand Technologies, Inc., a fabless semiconductor company transforming
power management in electronic devices, today announced that it closed $9.6
million in Series A financing at year-end 2012. A syndicate of financial
investors—including Arsenal Venture Partners, Northwater Capital and Ray
Stata, and strategic investors, including Dialog Semiconductor and Energy
Technology Ventures (ETV, a joint venture involving ConocoPhillips, GE and NRG
Energy, Inc.)—awarded the funding to the MIT spin-off, which is
commercializing energy-efficient power-conversion chips for multiple markets.

Arctic Sand’s technology platform targets the $10 billion total available
market for DC-to-DC power-conversion chips, used today to convert power inside
the devices for telecom, datacom, industrial and mobility markets. The Arctic
Sand Transformative Integrated Power Solutions (TIPS™) platform offers
significant improvements over existing products, reducing energy loss by 50%
via solutions a fraction the size of competitive products.

“A staggering 80% of energy generated worldwide is lost as heat due to
power-conversion losses,” said Nadia Shalaby, PhD, CEO and co-founder, Arctic
Sand. “Such excessive power inefficiency results in both unnecessary
electricity expenses and significantly oversized distribution and generation
in serving the world’s rapidly expanding computing and data storage needs.”

Dr. Shalaby explained that data centers alone spend more than $50 billion
annually on electricity—while emitting more CO[2] than the entire airline
industry. “Arctic Sand’s mission is to help rectify that problem,” she
explained. “By cutting power-conversion losses in half and delivering a
smaller solution size within the end products, Arctic Sand’s technology
empowers device manufacturers to recover energy and space—satisfying the
increased functionality demands of their customers. Backed by our financial
and strategic investors, we are excited to commercialize technology that will
deliver energy savings worldwide.”

Industry Support

Arctic Sand Chairman of the Board John Major—a board director at Broadcom, who
has extensive industry experience as former chairman of Broadcom and former
CTO of Motorola—voiced his confidence in the promising start-up: “Arctic
Sand’s prominent investment syndicate, differentiating IP and world-class
management team lay the ground work for a strong position in the telecom,
industrial and mobility markets.”

Kevin Skillern, managing director, GE Ventures, shared corporate and industry
perspectives on Arctic Sand’s value proposition: “GE has a long history as
both a supplier and user of power electronics technology and has expanded its
power electronics business significantly over the past few years,” said
Skillern. “That expertise helped ETV see how Arctic Sand’s innovations can
enable better performance, stronger economics and reduced environmental impact
in a wide variety of applications.”

Mark Tyndall, vice president of business development and corporate strategy,
Dialog Semiconductor, commented on Arctic Sand’s promise: “In the mobility
markets in which we play, the combination of enhanced energy efficiency with
space and cost savings is the perfect mix,” said Tyndall. “Arctic Sand’s
power-conversion platform delivers all of the above, enabling technological
advancements unparalleled in the industry today.”

About Arctic Sand

Founded in 2011, Arctic Sand Technologies is a privately held, fabless
semiconductor company, spun out of MIT, based in Cambridge, Mass. The
company’s power-conversion platform has the potential to transform power
management in electronic devices.

Arctic Sand has already earned numerous prestigious industry recognitions,
including the 2011 NASA Game Changer Award, the US Department of Energy
U-Launch Award and the NREL Industry Growth Forum Grand Prize Award. The
company is also the recipient of the National Science Foundation’s Small
Business Innovation Research Phase 1 grant.

For more information about Arctic Sand, please contact:

Arctic Sand and the Arctic Sand logo are registered trademarks and TIPS™ is a
trademark of Arctic Sand®. All product and company names are trademarks or
registered trademarks of their respective holders.

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Vetrano Communications
Maria Vetrano, 617-876-2770
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