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Kiva Systems Raises $10 Million in Third Financing Round

Funding allows continued market penetration of Kiva Mobile Fulfillment System

Woburn, MA - May 24, 2006 - Kiva Systems, Inc., creator of mobile robotic material handling systems delivering speed and flexibility to the distribution center, announced today the completion of a $10 million Series C investment from current and new investors. The funding, led by Bain Capital Ventures, will be used to expand manufacturing and service capacity as the company completes multiple deployments for customers throughout the U.S. in 2006, and brings the total amount raised to more than $18 million.

“Having demonstrated over 200 percent productivity improvement with the Kiva solution in pilot customer tests last year, we are now engaged in numerous full-scale designs and production deployments for 2006,” said Kiva Systems Founder and CEO Mick Mountz. “This Series C allows Kiva to build our manufacturing, deployment and field service organizations to meet this demand.”

A revolutionary approach to material handling for order fulfillment, the Kiva Mobile Fulfillment System employs low-cost mobile robots to bring inventory directly to operators resulting in triple the number of orders per hour per person. Operators stand at pick stations along the perimeter of the facility where they use an innovative pick-to-light put-to-light process to select items and place them in the correct shipping container.

“Kiva has executed well on their early lead with this innovative technology,” said Ajay Agarwal, a Managing Director with Bain Capital Ventures and Kiva Systems board member. “Customers are moving quickly to full-scale deployments, which validates the strong demand for this type of new solution in order fulfillment. We look forward to helping Mick and his team continue to build a great organization with a great solution.”

About Kiva Systems

Kiva Systems provides breakthrough mobile solutions for the dynamic storage, movement and sortation of inventory that enables truly adaptive fulfillment operations. An innovative combination of mobile hardware and powerful software, the Kiva Mobile Fulfillment System dramatically changes the fulfillment game, improving productivity three-fold over conventional methods while simultaneously increasing the speed, accuracy and flexibility of distribution operations. For more information on the Company and its solutions, please visit www.kivasystems.com

About Bain Capital Ventures

Bain Capital Ventures is the Boston-based venture capital arm of Bain Capital. Founded in 1984, Bain Capital and its affiliates have invested in over 230 companies with such notable successes as Doubleclick and Gartner Group. Bain Capital Ventures invests across all stages of a company's growth from providing seed capital through offering late stage growth equity. Bain Capital Ventures and our early stage companies benefit from the broader resources of Bain Capital, including over 400 investment professionals across North America, Europe, and Asia, $37 billion of assets under management, and the knowledge from 20 years of successful venture investing. For more information, visit www.baincapitalventures.com.

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