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Bank of ireland kernel capital fund ii

€1m series ‘a’ INVESTMENT IN

ikon semiconductor

CORK Ireland, 15 November 2012: Ikon Semiconductor Limited (“Ikon”) the Dublin-based technology company developing more efficient and cost effective LED (Light Emitting Diode) driver solutions for the LED lighting industry has received a further €1m investment from the Kernel Capital managed Bank of Ireland Kernel Capital Fund II. This Fund which targets investments in the €1m to €5m range is designed to provide substantial follow on funding to Companies that have already received angel and seed finance.

Ger Goold, Partner, Kernel Capital said: “Following a successful investment of €650k through our Bank of Ireland Seed Fund, this subsequent Series A investment from our Bank of Ireland Kernel Capital Fund II is likely to be the first of a number of further investments by our fund as we take the Company forward to syndicate with International partners.”

Inefficient lights used in homes and businesses are expensive to operate and are often powered by carbon polluting sources of energy which emit global warming pollution. Due to increasing concerns over energy consumption and the environmental impact of greenhouse gases (GHG); many governments around the world have passed measures to phase out incandescent lighting and replace it with low-energy alternatives such as LEDs; the fastest growing and most efficient source of green energy lighting. According to analysis from en.lighten[1]; a global transition to efficient lighting would result in annual worldwide savings of over US$ 110 billion and a 50% reduction in worldwide greenhouse gas emissions.

Donal Duffy, Head of Enterprise Ireland Relations, Bank of Ireland said: “Supporting progressive and innovative companies like Ikon Semiconductor is key to the success of Bank of Ireland Kernel Capital Fund II managed by Kernel Capital. Since the initial investment, the firm has created more jobs and produced prototype samples of its first chip. This follow-on investment is a demonstration of the fund’s continued commitment to support ambitious, indigenous companies like Ikon Semiconductor not only at their early stage but to support companies as their business footprint continues to grow and develop.”

Welcoming the announcement Greg Treston, Head of High Potential Start Ups at Enterprise Ireland, said: “Ikon Semiconductor is exactly the type of innovative, export-oriented company that Enterprise Ireland is keen to support. The technology that is being developed by Ikon Semiconductor is genuinely cutting-edge in reducing the cost of LED lighting and helping with energy saving and the green agenda. We believe the company has significant potential for rapid growth in global markets and we are delighted that this investment round will further drive their continued development.”

Ikon’s silicon, LED Driver solutions will offer significant benefits to customers in terms of design, size and cost. The company will commence shipping silicon samples to key customers early next year. The company is focused on the residential and commercial the residential and commercial LED bulb replacement market which is expected to grow exponentially from 80 million units in 2011 to 430 million units by 2013. Ikon will use the funds to drive product development and plans significant recruitment of over the next six months to support these growth plans.

Conor McAuliffe, CEO of Ikon Semiconductor, added: “We are delighted to have received this additional €1m investment from Kernel Capital which will enable us to substantially ramp up our team and take our first LED driver product to a point where it is ready for volume production during 2013.”

Ikon presented at the Enterprise Ireland International Investor Forum in London on the 21st November which brought together some of the world’s leading investors.

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Advisors:

Kernel Capital:Gillian Keating, Partner, JW O’Donovan Solicitors

Ikon Semiconductor: Emmet Scully, Partner, LK Shields Solicitors

For further information please contact:

Dawn Guiney, Kernel Capital.

Tel: +353 21 4928974 / Fax: +353 21 4928977

Notes to Editors:

Energy Consumption

  • One kilowatt-hour of electricity will cause 1.34 pounds (610 g) of CO2 emission[2]. Assuming the average light bulb is on for 10 hours a day, one 40-watt incandescent bulb will cause 196 pounds (89 kg) of CO2 emission per year. The 6-watt LED equivalent will only cause 30 pounds (14 kg) of CO2 over the same time span. Therefore, a building’s carbon footprint from lighting can be reduced by 85% by exchanging all incandescent bulbs for new LEDs.
  • Over 12 billion incandescent light bulbs are sold annually, lighting accounts for almost 19% of global energy consumption which equates to the output of approximately 1000 large electric power plants[3].
  • The traditional incandescent light bulb has remained virtually unchanged since it was invented in 1879 by Thomas Edison and is highly inefficient with almost 90% of the energy consumed being given off as heat.
  • Electricity for lighting is responsible for nearly 20% of total end use electrical consumption and amost 6% of global greenhouse gas (GHG) emissions[4].

About Ikon Semiconductor

Ikon Semiconductor Limited is a fabless semiconductor company which is developing innovative LED Driver IC solutions for the offline LED lighting market. The company was founded by 2 semiconductor industry veterns who have a combined experience of almost 40 years in the semiconductor industry. By applying proprietary digital control techniques, where traditionally analog control techniques have been used, Ikon Semiconductor is developing a solution which reduces cost and enhances performance of the power electronics required in LED lighting applications. Ikon’s first product targets the residential and commercial bulb replacement market, where volumes of LED replacement lamps are predicted to grow to 430 million units in 2013.

About Kernel Capital

Kernel Capital and its associate Life Science investment firm Seroba Kernel have in excess of €173m under management in six separate Venture Capital funds, investing in ICT, Life Science and general seed and early stage investments. These funds are supported by Enterprise Ireland, Bank of Ireland, University of Limerick Foundation, NUI, Galway and a range of other financial institutions. They have invested in Kernel Capital's portfolio of 60+ companies which collectively employ in excess of 1,000 people and have been granted over 150 scientific patents. Kernel Capital and Seroba Kernel are committed to dynamic, innovative, knowledge based companies and believe that it is an exceptional time for investment.

Bank of Ireland Seed and Early Stage Equity Fund

Bank of Ireland Seed and Early Stage Equity Fund is a €32m Fund that invests in start-up and early stage companies, with a focus on export orientated high potential start-up companies that operate in the technology (including green technology), food and financial services sectors, in addition to supporting patent and patent pending projects within Irish universities. It is managed on behalf of Bank of Ireland and the other partners by Kernel Capital. This fund comprises of an investment by Bank of Ireland, Enterprise Ireland, University of Limerick Foundation and NUI Galway. The €10m Bank of Ireland MedTech Accelerator Fund is part of this Fund.

About Enterprise Ireland

Enterprise Ireland, the Irish government agency responsible for the development and growth of Irish industry, is actively involved in supporting early stage high potential start-ups. With over 80 new direct equity investments annually in these businesses, and through its investment in 41 seed and venture capital funds, Enterprise Ireland is now the largest early stage VC investor in Europe in terms of the number of investments made. In addition, through its network of 31 international offices, Enterprise Ireland actively supports Irish companies to grow their export markets and create valuable jobs in Ireland.

KERNEL CAPITAL IS A TRADING NAME OF KERNEL MANAGEMENT PARTNERS LIMITED, DIRECTORS: N.OLDEN, M..KINSELLA, P.SANDYS, D.SIDHU, V. FENNELLY

KERNEL CAPITAL IS REGULATED BY THE CENTRAL BANK OF IRELAND

[1] The en.lighten initiative

[2] "US DOE EIA: Electricity Emission Factors". http://www.eia.doe.gov/oiaf/1605/emission_factors.html. Retrieved 2009-06-03.

[3] “Global Efforts to Phase-Out Incandescent Lamps, An update from Paul Waide, International Energy Agency (IEA)”.

[4] The en.lighten initiative