RAIR and ITI Join Forces to Provide Personalized Real-Time Training

Industry First Ties Key Performance Indicators and CSA BASIC Scores to Specific Training Needs

Milwaukee, Wisconsin (December 13, 2011) – RAIR, a division of DriveCam and leading provider of web-based safety and compliance solutions, has partnered with Instructional Technologies, Inc. (ITI) to provide ITI’s Pro-TREAD online safety training to DOT-regulated fleets.  RAIR is an industry leader in identifying risk by analyzing driver behavior. The new partnership enables customers to address risky behavior by matching specific training lessons to individual drivers based on key performance indicators, including CSA BASIC scores.

 “By assigning Pro-TREAD training lessons from within RAIR’s reporting system, users now have the ability to directly link risky driving behavior to appropriate training content, enabling relevant and meaningful interaction with drivers,” commented RAIR CEO, Greg Lofy. “For example, a user of RAIR’s DVIR auditing program can currently identify a driver who routinely fails to perform proper pre-trip inspections on his tanker. With our new partnership, the user will be able to navigate directly from RAIR’s DVIR reports to Pro-TREAD to assign the Tanker Pre-trip Inspection lesson to that driver.”

“RAIR and Instructional Technologies make an excellent alliance,” said Dr. James Voorhees, founder and CEO of Instructional Technologies, Inc. “Both companies provide easy-to-use online services that help carriers operate safely, reduce costs and limit risk. Giving fleets the ability to take immediate, driver-specific action on RAIR’s safety analysis makes our highways safer.”

For more information, visit www.rair.com or www.instructiontech.net.

About RAIR

Founded in 2001, RAIR provides web-based safety and compliance services to over 300 truck and bus companies, representing more than 300,000 drivers. RAIR services include paper and electronic (EOBR) driver log auditing, CSA data analysis and management, driver qualification (DQ) file auditing and online DQ files, paper/electronic driver vehicle inspection report (DVIR) auditing and online vehicle files, drug testing and more. Because of its expertise in regulatory compliance issues for DOT-regulated fleets, RAIR has fostered long-term relationships with many of the largest and most prestigious fleets in trucking, distribution and transit, including 50% of the “Top 100” carriers in the U.S. and Canada. RAIR is a division of DriveCam, Inc.

DriveCam is a leading provider of safety and driver management services. As proven experts in the science of safe and efficient driving, DriveCam prevents collisions and reduces fuel costs by improving the way people drive. Its solution addresses the causes of poor driving by combining data and video analytics with real-time driver feedback and coaching, resulting in reductions in collision-related costs and fuel consumption in over 170,000 commercial vehicles.

About Instructional Technologies, Inc.

Instructional Technologies, Inc. (ITI) helps reduce injuries and accidents in the transportation and logistics industry by providing safety training through Pro-TREAD. Pro-TREAD trains truck drivers and warehouse employees with more than 70 interactive online and in-cab courses. These self-paced courses cover everything from defensive driving to hazmat regulations, from forklift operations to emergency planning and are accessible online or in-cab. Pro-TREAD also maintains an online database that documents and stores each driver’s training history, a valuable tool for proving compliance and for legal defense. In addition, customers receive a training management system, which allows management to track which employees have taken and completed the training.

DriveCam Accelerates Growth with New Funding and Strategic Acquisition

$85 Million Private Investment. Acquisition of RAIR Technologies to Double Customer Base.

SAN DIEGO – November 17, 2011 – To continue funding rapid growth and market expansion, DriveCam, Inc., a global, SaaS-based Driver Risk Management company, announced today that it has entered into a definitive agreement to raise $85 million in investment capital from WELSH, CARSON, ANDERSON & STOWE XI, L.P. (WCAS), a New York-based private equity firm and global leader in the funding and development of information and business services providers. The investment is being made, in part, to fund the acquisition of RAIR Technologies, LLC, a leading provider of regulatory compliance solutions for DOT-regulated fleets. RAIR allows fleet operators to efficiently manage hours-of-service logs, CSA safety scores, driver qualification and vehicle inspection requirements.

The investment is a direct result of DriveCam’s pioneering leadership in the field of video-based driver safety and its growing customer base, including many of the largest and most prestigious fleets in the world. By consistently delivering customer value, DriveCam has achieved strong profitability, generated significant year-over-year growth and continues to win multi-year orders from both new and existing clients. The new investment will fund DriveCam’s aggressive growth agenda, including its acquisition of RAIR.

“We are very pleased to partner with DriveCam, the market-leading provider of driver safety technology and solutions,” commented Mike Donovan, General Partner at WCAS. “DriveCam’s management team has been at the forefront of industry innovation and operational excellence, and as a result, we see the very strong momentum in the business today continuing into the future.” WCAS joins DriveCam’s strong group of existing investors.

“It’s exciting to be recognized by leaders in the investment community for our hard work and success,” remarked DriveCam CEO Brandon Nixon. “With this investment, DriveCam will continue to accelerate its growth by expanding into new market segments and broadening its value proposition through strategic partnerships and targeted acquisitions, the first of which is RAIR.”

RAIR provides web-based safety and compliance services to many top fleets in trucking, distribution and transit, including 50% of the “Top 100” carriers in the U.S. and Canada. Its services include the processing and auditing of hours-of-service logs, CSA data analysis and management, driver qualification file auditing, vehicle inspection (DVIR) reporting and auditing, drug testing and more.  RAIR’s services save fleet operators time, reduce exposure related to litigation or poor safety ratings and improve overall fleet competitiveness.  By combining DriveCam and RAIR’s complementary services, clients will be able to take advantage of a suite of driver-centric services that will help fleet operators more efficiently manage their driver workforce.

“We’ve dedicated many years to building a business that is an industry leader, recognized for great customer service,” stated Greg Lofy, CEO of RAIR. “In DriveCam, we have found a strategic partner that shares our commitment to high-quality service and innovation – and is the unparalleled leader in driver safety.  By joining forces, I’m confident we will be able to expand our technology and services to bring additional value to our customers.

“We are only in the initial phases of delivering on all the benefits we can provide to the combined client base,” Nixon commented. “RAIR has a strong position in the DOT-regulated transportation market, which nicely complements DriveCam’s already strong client base in trucking, local distribution, services, utilities, transit and solid waste. Building on this acquisition, DriveCam is dedicated to investing heavily in our service offering through both organic growth and strategic acquisitions.”

The investment and acquisition are expected to close in early December 2011, subject to customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.  Terms of the transactions were not disclosed. Barclays Capital Inc. served as exclusive financial advisor and exclusive placement agent to DriveCam on the transaction.

About WELSH, CARSON, ANDERSON & STOWE

WELSH, CARSON, ANDERSON & STOWE (“WCAS”) is one of the largest and most successful private equity investment firms in the United States. Since its founding in 1979, WCAS has organized 15 limited partnerships with total capital of $20 billion. Since inception, WCAS has invested in over 160 companies in its core industries and has funded over 650 follow-on acquisitions. Across all WCAS Partnerships, the current portfolio consists of 30 companies with combined revenues of approximately $24 billion and EBITDA of over $3.3 billion. Investors in WCAS’ previous Partnerships include many of the nation’s most prominent institutions, including public and private pension funds, banks, insurance companies, university endowments and other institutional investors.

About RAIR Technologies, LLC

Founded in 2001, RAIR provides web-based safety and compliance services to over 300 truck and bus companies, representing more than 300,000 drivers. RAIR services include paper and electronic (EOBR) driver log auditing, CSA data analysis and management, driver qualification (DQ) file auditing and online DQ files, paper/electronic driver vehicle inspection report (DVIR) auditing and online vehicle files, drug testing and more. Because of its expertise in regulatory compliance issues for DOT-regulated fleets, RAIR has fostered long-term relationships with many of the largest and most prestigious fleets in trucking, distribution and transit, including 50% of the “Top 100” carriers in the U.S. and Canada

About DriveCam, Inc.

As proven experts in the science of safe and efficient driving, DriveCam prevents collisions and reduces fuel costs by improving the way people drive. Our solution addresses the causes of poor driving by combining data and video analytics with real-time driver feedback and coaching, resulting in reductions in collision-related costs and fuel consumption in over 170,000 commercial vehicles. In addition, DriveCam has monitored and analyzed data from over 4 billion driving miles and holds the world’s largest database of risky driving, which is continually used to improve proprietary analytics and deliver insights into transportation industry trends. DriveCam was recently recognized as #30 in The Wall Street Journal’s listing of Top 50 Venture-Backed Companies. For more information, visit www.drivecam.com.

On July 8, the Federal Motor Carrier Safety Administration (FMCSA) published a proposal to amend the driver physical qualifications so that drivers using Schedule I drugs will be disqualified from driving commercial motor vehicles under any circumstances.  The proposal will also “harmonize” the FMCSA’s provisions for pre-employment and return-to-duty test refusals with corresponding Department of Transportation provisions.  Click here to view the proposal in the Federal Register.

Earlier this month, a federal drug testing advisory board voted unanimously to recommend the  development of drug testing guidelines by the Department of Health and Human Services (DHHS).  The guidelines will define the use of saliva testing as an alternative method of identifying drug use among federal employees.  Click here to view the Federal Register.

CVSA’s recent Roadcheck 2011, an annual, three-day vehicle safety enforcement campaign, showed that maintenance and safety are continuing to improve in the commercial motor carrier and motor coach industries, as overall out-of-service (OOS) rates are at their lowest since the campaign’s inception.

Nearly 8,000 CVSA and FMCSA certified inspectors performed over 70,000 truck and bus inspections over the three day span.  On average, 16 trucks or buses were inspected every minute for the 72 hours of the event.

Inspectors focused primarily on four inspections: the North American Standard (NAS) Level I inspection, motorcoach inspections, hours of service logbooks, and household goods carriers.

Hours of service logbook violations led overwhelmingly with 52.5% of all OOS violations. When inspectors surveyed drivers on their use of electronic logging devices, they found that 14% of drivers were using them.

While Roadcheck is an important, annual event, roadside inspections occur daily across North America. There were over 3.9 million in 2010 alone.

Below are a few highlighted results from 2010 and 2011: