Tymphany Announces $13 Million in Venture Capital Funding

Tymphany™ Corporation, the industry’s leading provider of innovative audio
transducers, recently announced that it has received $13 million in
funding from new investor American Capital Strategies Ltd. American
Capital’s investment takes the form of convertible preferred equity.
The investment is being used to provide working capital for the
expansion of Tymphany’s China operations and to support further
product development and penetration of new markets. Greg Smitherman,
American Capital Managing Director, will be joining Tymphany’s Board
of Directors. VantagePoint Venture Partners, Tymphany’s main
investor, also participated in the financing round.

“Tymphany is the Technology Group’s second direct investment since its
formation,” said American Capital Managing Director Gordon O’Brien.
“We are delighted to be backing a first-class management team whose
members have superlative reputations for innovation, design and
customer service. We are confident in Tymphany’s long-term
prospects, and in the growing need for quality audio in the
lifestyle consumer electronics markets that Tymphany is addressing.“

“One of the things that makes Tymphany such an attractive investment is that it is truly a hybrid of an early- to mid-stage start-up and an older,
established company,” said American Capital Managing Director
Virginia M. Turezyn. “Through its astute merger with Danish Sound
Technology (DST) a year and a half ago, Tymphany went from no
history in the audio industry to a respected history dating back
over 80 years. The merger brought top acoustical engineers,
manufacturing facilities in both Denmark and China, and an amazing
installed base of customers that includes many of the world’s
leading speaker brands. The depth of its audio engineering talent
and manufacturing capabilities, combined with a well-defined
strategy for entering new markets, make Tymphany a compelling new
addition to our portfolio.”

“This investment allows Tymphany to complete its transfer of manufacturing
operations to China, a move that is producing a winning combination
of unparalleled innovation and engineering with low cost
production,” said American Capital Managing Director and new
Tymphany board member Greg Smitherman. “The first applications of
the Tymphany LAT have arrived on the market and have already proven
the value of their compact, vibration-free design. With smaller
versions of the LAT in development, it will be exciting to see and
hear the impact of this subwoofer on other products, such as flat
panel TVs and MP3 docking stations.”

“American Capital’s appreciation for our business, its experience in the
technology sector and its flexible capital make it the perfect
investment partner for Tymphany,” said Tymphany’s Chairman, CEO and
President, Mike Hackworth. “Its support enables us to pursue the
vast potential of our innovative new technologies more aggressively,
and to invest in the expansion of our world-class manufacturing
facility in China. As we expand our reach into the lifestyle
consumer electronics markets, it’s very important that we support
our customers with high volume, high quality production capabilities
to match their own volume and quality standards.”