SLI Systems Raises Capital To Fund Offshore Growth

News Release 10 December 2007

SLI Systems Raises Capital To Fund Offshore Growth

SLI Systems, the international provider of on-demand search services for Internet and e-commerce sites, has received a NZ$1 million capital injection from Pioneer Capital Partners to fund an expansion of its offshore operations.

Dr Shaun Ryan, SLI System’s chief executive said, “We are pleased to have Pioneer Capital on board as an investor. The new capital gives us the ability to accelerate our growth, particularly in the United States market. It enables the company to undertake channel development and employ more direct sales staff in that market, and take on additional software developers in New Zealand.”

Established just over six years ago, Christchurch-based SLI Systems makes over 90 percent of its revenue from offshore sales. Seventy five percent of its revenues are generated in the US market,
15 percent in the UK, and the balance in the Asia Pacific region.

Matthew Houtman, General Partner with Pioneer Capital Partners said, “SLI Systems has a well established presence in the US and UK, an attractive business model based on recurring revenue and strong management. What also attracted us was the potential to significantly expand the business by taking advantage of growth opportunities present particularly in the US market.”

Pioneer Capital Partners is an Auckland-based investor focussing on expansion stage New Zealand companies with export and growth potential in large international markets. Pioneer typically takes a minority stake in the companies in which it invests, providing new capital and relevant strategic expertise. Its investment portfolio includes Right Hemisphere, Orion Health, Grand Challenge (Inro), and now SLI Systems.

Dr Ryan said, “Pioneer Capital Partners brings additional expertise to the company. Matthew Houtman has joined the SLI board and Pioneer will provide corporate finance guidance for any acquisitions the company undertakes and any future capital structure and capital-raising related activities.”

SLI Systems provides learning-based search technology for corporate Internet and e-commerce websites. The service is an intelligent technology that Searches, Learns and Improves the user experience. This improves client companies’ customer satisfaction while increasing sales, reducing costs and providing valuable customer information. Unlike traditional search software, SLI Systems’ patented technology continuously ‘learns’ from the behaviour of visitors over time to deliver more relevant results.

The last 12 months have seen the number of websites SLI runs search services for double to more than 200. Customers include FTD (the 2nd largest flower retailer in the US), Qantas, Tupperware, NBC, Interflora and the British Treasury. New Zealand clients include, Dick Smith Electronics, Noel Leeming, the Department of Statistics and Christchurch City Council.

Dr Ryan said, “This funding enables SLI Systems to rapidly ramp up the recruitment of sales staff in the US and to undertake channel development through selected partnership agreements with resellers. We have no doubt that our company’s growth will primarily come from offshore as retailers and other organisations acknowledge the need to showcase their products and services online.”

About SLI Systems

SLI Systems is the developer of learning-based search technology for corporate Internet sites, e-commerce destinations and consumer Internet portals that Searches, Learns and Improves the user experience. SLI Systems’ hosted site search and automated Search Engine Optimisation (SEO) solution empower businesses to enhance customer satisfaction while increasing sales, reducing costs and yielding valuable customer information.

Unlike traditional search software, SLI Systems’ patented technology continuously ‘learns’ from the behaviour of visitors over time to deliver more relevant results.
SLI Systems is a privately held company, with offices in Silicon Valley, London and Christchurch, New Zealand. For more information, visit www.sli-systems.com.

About Pioneer Capital Partners

Pioneer Capital Partners is an expansion stage value investor in unlisted New Zealand companies scaling in large international markets. Pioneer partners with managers and existing investors to help create industry leaders. The Pioneer team has significant experience operating, investing in and advising companies that have grown internationally to realise significant shareholder wealth through listing or sale to industry or financial buyers.

Pioneer focuses on opportunities arising in the Specialised Manufacture & Design and Information & Communications and Technology sectors and on each occasion seeks to invest $5m to $15m. Pioneer operates from offices in Auckland and Christchurch. For more information, visit www.pioneercapital.co.nz

ENDS