WatchGuard Video Receives Capital Investment

PLANO, TX - July 1, 2008 - WatchGuard Video announced Monday that Peninsula Capital Partners, LLC, via its $335 million investment partnership The Peninsula Fund IV LP, completed a $6.5 million growth capital investment in WatchGuard Video to provide additional liquidity to support sales growth and fund new product development. This investment followed the recent announcement that sales for WatchGuard Video have risen more than 100% in the last year.

"We are very excited to put this additional capital to work which will allow the Company to expand into new market segments, build additional infrastructure within the organization, and manage the rapid growth that we have been experiencing," stated Robert Vanman, President and C.E.O. of WatchGuard Video. "While the Company became profitable shortly after the production release of the DV-1, sustained high revenue growth requires more working capital, and this investment provides the Company additional liquidity to support continued sales growth, expand the capabilities of the DV-1, and simultaneously fund additional development projects."

"When we learned about WatchGuard Video, we liked the Company right away," explained Scott A. Reilly, CFA, President and Chief Investment Officer of Peninsula Capital Partners. "As we completed the due diligence phase of the transaction, two attributes became clear; the depth and quality of the Company's management team is unusual for a firm this size, and WatchGuard's customers are very passionate about the Company's products and service."

About Peninsula Capital Partners
Founded in 1995, Peninsula Capital Partners, LLC, of Detroit, MI is a private investment company focusing on providing non-controlling capital to well managed, profitable and promising middle-market companies. Peninsula Capital manages four investment partnerships with committed capital exceeding $800 million and has invested in approximately 100 companies throughout North America, Europe and Asia.

About WatchGuard Video
WatchGuard Video, headquartered in Plano, Texas, is the nation's leading law enforcement provider of digital in-car video systems. The Company's primary product, the WatchGuard DV-1, is a digital police in-car video system that records directly onto DVD-Video discs that play in regular DVD players. It is the only law enforcement product in the world that can create playable DVDs in a moving vehicle in real time.