Contact:
Neva Garcia
Evolution Robotics Retail
310-920-0544
neva@evoretail.com

Steve Chadima
Idealab
626-535-2784
steve@idealab.com

IMMEDIATE RELEASE

Evolution Robotics, Inc. Announces Formation of Evolution Robotics Retail, Inc.

PASADENA, CA, January 13, 2006 – Evolution Robotics, Inc. announced today that it has formed a wholly-owned subsidiary, named Evolution Robotics Retail, Inc., to focus exclusively on bringing object recognition-based solutions to the retail industry.

“The success of LaneHawk in 2005 positioned the retail operations within Evolution Robotics for tremendous growth,” said Bill Gross, Chairman of Evolution Robotics. “To capitalize on this success, we needed dedicated management and resources to serve our retail industry customers. Evolution Robotics Retail creates the structure to accomplish the needed focus.”

Evolution Robotics Retail’s primary product is LaneHawk, a revolutionary bottom-of-basket loss prevention solution for retail that is based on Evolution Robotics’ award-winning visual pattern recognition (ViPR™) technology. Through observing to date over 3 million images in grocery customer pilots, LaneHawk has proven its ability to identify items on the bottom of a shopping cart and present them to the point of sale as part of the transaction. Typical U.S. grocers are losing more than $10 per day per lane with bottom-of-basket items leaving the stores unpaid for. LaneHawk significantly reduces the losses per day per lane, allowing grocery retailers to improve overall corporate profitability by as much as 10%.

“We are excited about LaneHawk’s potential to solve a multi-million dollar annual problem for grocery retailers,” said Alec Hudnut, CEO of Evolution Robotics Retail. “Forming Evolution Robotics Retail allows us to target future investments in a new, high-growth segment of the retail industry.”

Evolution Robotics Retail will continue to leverage the core visual pattern recognition technology developed in conjunction with parent, Evolution Robotics. Our ViPR™ technology is found today in over 100,000 robots and machines across over 100 corporations and academic institutions.

“We will continue to share core research and development of our object recognition algorithms with the robotics side of the business,” according to Jeff Sakaguchi, VP and General Manager of Evolution Robotics Retail. “But our new structure will allow us to focus on retail-specific development, which poses different challenges than what our military and consumer clients need to address.”

Both Evolution Robotics and Evolution Robotics Retail will remain at their current Pasadena, CA location.

Evolution Robotics Retail Information:

Evolution Robotics Retail, Inc. is based in Pasadena, CA, and develops intelligent products and solutions for the retail industry based on VIPR™, which is considered the “gold standard” implementation of scale-invariant feature transformation (SIFT) algorithms. The company’s flagship product is LaneHawk™, a Visual Scanner for Preventing Bottom-of the-Basket Loss. Evolution Robotics Retail is a subsidiary of Evolution Robotics, Inc. (www.evoretail.com)

Evolution Robotics Information:

Evolution Robotics, Inc. is based in Pasadena, CA, and partners with brand leaders to make their products smarter by providing solutions for vision, autonomous navigation and intelligence. The company’s core technologies include ViPR™, the “gold standard” for visual pattern recognition, NorthStar™, the world’s lowest cost localization solution and the ERSP® Robotic Software Development Platform. These technologies are used worldwide for commercial and consumer use. Evolution Robotics is an operating company of Idealab, a creator and operator of technology businesses. (www.evolution.com).