SENSORTRAN, INC. CLOSES $5.5 MILLION VENTURE INVESTMENT

Leading Developer of Fiber Optic Sensors for CleanTech Applications, Completes Series B Round

Austin, TX, August 16, 2006 – SensorTran, Inc., a leading developer of advanced fiber-optic based sensors for complex asset monitoring applications, today announced that the company has closed on a $5.5 million Series B round of venture capital financing. The investment was led by Expansion Capital Partners, LLC, on behalf of the firm’s Clean Technology Fund II, LP. WHEB Ventures of London and Stonehenge Capital Company, LLC of Dallas, Texas also participated in the financing.

SensorTran develops fiber optic sensors for Distributed Temperature Sensing (DTS) and other functions. The company’s technology is utilized in a variety of applications; it helps avert blackouts by closely monitoring power transmission lines, prevents leaks in pipelines and storage containers, optimizes the amount of energy required for oil and gas extraction operations and increases the efficiency of a wide variety of energy-intensive industrial processes. SensorTran’s ruggedized products enhance performance at a significantly more affordable price point than any other DTS system available today. SensorTran’s 5100 system is already being used by a number of leading electric utilities, oil and gas system integrators and industrial manufacturers. Customers include Baker Hughes, Core Labs, GE, N-Star, BC Hydro, and many others.

“The participation of Expansion Capital Partners and WHEB Ventures, two early clean technology venture capital visionaries, is an endorsement of both our business and our distinctive technology,” said Kent Kalar, President and CEO of SensorTran, Inc. “In tandem with Stonehenge Capital’s deep energy market expertise, these relationships will prepare SensorTran to continue our ongoing efforts to drive the market’s adoption of our field-proven DTS solution, expand our growing clean technology business in Austin and develop new technology and service capabilities and products to meet our customers’ evolving requirements both today and in the future.”

As part of the financing, Mark Donohue, General Partner of Expansion Capital Partners, Kim Heyworth, CEO of WHEB Ventures, and Randy Noster, President and CEO of Austin-based Systems and Process Engineering Corporation (the original parent company of SensorTran), will take seats on SensorTran’s Board of Directors.

Mr. Donohue said, “We’ve been tracking the progress that has been achieved by Kent and the entire SensorTran team for some time now, and we have great confidence in their exceptional innovation and product design capabilities. Sensors are an increasingly important enabler of a broad set of Clean Technologies, and SensorTran’s superior, proprietary platform technology ideally positions the company to continue its rapid expansion into promising new markets and applications. SensorTran’s products remain unparalleled in terms of their performance, reliability, accuracy and ease of use.”

Mr. Heyworth said, “We are excited to partner with Kent and SensorTran, who have done a remarkable job developing the business to this point. We see a significant, immediate need in the marketplace for this type of accurate, reliable and cost-effective sensor solution. All of us at WHEB Ventures are looking forward to working closely with the company’s management to help them execute and accomplish their plans for global growth.”

About SensorTran
SensorTran, Inc., a leading developer of advanced fiber-optic based sensors for complex asset monitoring applications, since 1998. SensorTran's Distributed Temperature Sensing (DTS) instruments have been helping companies around the world in Oil & Gas, Electric Power, Aerospace, and other industries improve the performance and management of their critical assets. For more information,
visit www.sensortran.com or call Kent Kalar at 512-479-7732, Ext. 2156.

About Expansion Capital Partners, LLC
Founded in 2002, Expansion Capital Partners, LLC, invests venture capital exclusively in expansion-stage, Clean Technology enterprises. The firm targets companies that offer dramatic improvements in resource efficiency and productivity, while creating more economic value with less energy and materials, or less waste and toxicity. Clean Technology Fund II, LP, invests in US and Canadian enterprises with current customer revenues of $2-20 million, combined with solid prospects of attaining $30-$100M in revenues within 3-5 years. The fund makes initial investments of $2M to $5M, with its Partners taking active, value-add Board roles. Expansion Capital has offices in San Francisco and New York. Further information can be found at www.expansioncapital.com or by calling Kjartan Jansen at Expansion Capital Partners, 415-788-8825.

About WHEB Ventures
WHEB Ventures is jointly owned by founder directors Kim Heyworth and Rob Wylie together with Ben Goldsmith and associates of the Goldsmith family. WHEB's fund invests in early stage clean technology companies which have global market applications. For more information, visit www.whebventures.co.uk or call Kim Heyworth at 0044 207 2994141.

About Stonehenge Capital
Stonehenge Capital Company, LLC is a nationwide specialty finance firm with expertise in mezzanine and private equity, tax credit finance and structured finance transactions. Stonehenge manages approximately $500 million in private equity funds through its offices in Alabama, Colorado, Florida, Louisiana, Missouri, New York, Ohio, Texas, and Wisconsin. For more information, visit www.stonehengecapital.com or call Steve Bennett at 214-599-8850.

Press Contact:
Matt Landry
Matter Communications, Inc.
978-499-9250, x 226
matt@matternow.com

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