TENXSYS INC. ANNOUNCES STRATEGIC INVESTMENT AND DEVELOPMENT AGREEMENT WITH IN-Q-TEL

September 21, 2006

TenXsys Inc., a provider of telemetry systems for remote monitoring of physiologic, environmental, and locational data, today announced a strategic investment and development agreement with In-Q-Tel, the independent strategic venture capital fund that identifies innovative technologies to support the missions of the Central Intelligence Agency (CIA) and the larger Intelligence Community (IC).

“This agreement with In-Q-Tel is a tremendous validation of the TenXsys technology,” said Frank Riskey, President and CEO of TenXsys Inc. “In-Q-Tel’s investment will allow TenXsys to further product development and take this advanced technology to market.”

This new investment capital will be used to support both commercial market and technology development efforts. It will also enable TenXsys to provide additional support to its major customers in the private and public sector markets.

TenXsys provides a system of advanced, configurable telemetry devices that allow people to monitor and collect physiologic, environmental, and location data including heart rate, skin surface temperature, ambient noise amplitude and audio recordings. In 2006, TenXsys, in conjunction with the Center for Orthopedic and Biomechanics Research, produced a field-capable Sensor Monitoring and Relay Transmission (SMART) system that improved amputee monitoring, decreasing the likelihood of injuries due to overexertion and balance instability events.

“The TenXsys technology offers significant value in the commercializing of telemetry systems,” said Chris Darby, President and CEO of In-Q-Tel. “After conducting a thorough technical analysis and venture evaluation, we invested in TenXsys on behalf of the Defense HUMINT Management Office and our partners in the Intelligence Community because of TenXsys’ unique technology capabilities that allow users to automatically monitor and collect biometric and environmental information, enabling real-time data to be viewed more efficiently.”

Financial details about the agreement were not disclosed.

About TenXsys Inc.
TenXsys Inc. provides telemetry systems for remote monitoring. From software used by NASA’s Mission Control Center to animal health monitoring devices, TenXsys provides complete solutions that can be tailored to a customer’s needs. TenXsys is headquartered in Eagle, Idaho. The company is privately held and was founded in 2002. Additional information about TenXsys Inc. is available at www.tenxsys.com.