OAT Secures $11.5 MN First Round VC Funding

Matrix Partners and Greylock fund innovative RFID software company

Watertown, Mass., September 15, 2003 - OATSystems, Inc., a privately-held software company headquartered in Watertown, Mass., announced today that it has secured financing totaling $11.5 million from two top-tier venture capital firms: Matrix Partners and Greylock.

"We are very excited to have Matrix Partners and Greylock as our partners in this venture. The funding will support several innovative initiatives that we have in the works including new products that evolved from listening to our customers," said Prasad Putta, founder of OATSystems, Inc.

"We believe OATSystems provides a critical foundation for the growth of the
RFID industry", said Nicholas Beim, a Principal at Matrix Partners. Within six
months of launching its flagship product SensewareTM, OATSystems began
deploying the software in global corporations in the consumer packaged goods, retail and pharmaceutical industries. SensewareTM is the first reader independent RFID middleware, providing businesses with real-time visibility,
improved velocity and product security in their supply chains.

"The opportunity to work with OAT in building a world-class company in the
RFID space is very exciting to all of us at Greylock," added Bill Helman, General Partner at Greylock.

About OATSystems, Inc.

Founded in 2001, OATSystems, Inc. is the developer of the world's most widely deployed standards-based RFID solutions. The company has played an integral role in developing RFID standards and technologies and has deployed its flagship Senseware platform to help many of the world's largest retail, consumer packaged goods and pharmaceutical companies reap the economic benefits of RFID. Headquartered in Watertown, Mass., OATSystems is a privately held company backed by Matrix Partners and Greylock. For more information, please visit the company's Web site at www.oatsystems.com.