October 7, 2004 — PLANO, TX and WAYNE, PA — BIAP Systems, Inc, the leading provider of artificial intelligence solutions to the broadband industry, announced the completion of an $11 million equity funding led by the company’s principal investor, SCP Private Equity Partners II, L.P. The financing comprised the purchase of $3 million of the company’s Series D preferred stock by SCP, and the conversion of $8 million of debt into the company’s preferred stock.

"For years, consumers have been waiting for technology that could connect their TV with their PC, the Internet, and other edge devices like VoIP phones," said Winston Churchill, chairman of BIAP Systems and managing partner of SCP Private Equity Partners. "BIAP’s artificial intelligence technology is now allowing cable providers to offer a user-friendly way of seamlessly connecting their subscribers’ personalized digital universe to their televisions. It’s all about convergence."

"Our partnership with SCP has been critical to our success. Win and the team have continued to support us with advice, business development, and funding during one of the toughest environments for early stage technology companies," said Tim Peters, CEO of BIAP Systems. "This new funding will enable us to continue deploying multiple applications in cable systems nationwide as well as other related applications and offer convergence to digitally connected homes everywhere."

BIAP’s unique software technology enables digital cable television subscribers to receive highly personalized information directly on their television screens. For example, subscribers can create their own personalized stock ticker featuring only stocks of interest to them. They can also obtain local weather, traffic, sports results, and news about their local community. BIAP’s intelligent agents continuously update this information based on each subscriber’s personal preferences.

About BIAP

BIAP Systems, Inc. provides next generation software products that enhance broadband and digital services and enable customers to receive local and personalized information across multiple digital platforms. These exciting new operator-branded products require no additional capital investment, bandwidth, or head count for deployment. BIAP’s corporate headquarters are in Plano, Texas with research and development located in Dulles, Virginia.

About SCP Private Equity

SCP Private Equity Partners (www.scppartners.com) is a private equity firm focused on companies in high growth industries, with an emphasis on technology. The firm manages capital in excess of $800 million. SCP generally invests in companies with commercially proven technologies that need capital to implement and market their business concepts. Areas of investment focus include information technology, Internet infrastructure, financial services, wireless communications, life sciences, security, and education. SCP supports its investment portfolio with a rich base of strategic, operating and financial expertise and an extensive network for accessing capital, recruiting management, and facilitating favorable strategical alliances.

#####Contacts#####

SCP Private Equity Partners

Charles C. Freyer

tel. 610.254.4242

email. cfreyer@scppartners.com