The FeedRoom Receives $30 Million in Second-Round Funding; Warburg Pincus Funds Leads Backing for Broadband News Network; Tribune Ventures, NBC Also Invest

Business Wire, August 22, 2000

Business Editors & Internet/On-Line Writers

NEW YORK--(BUSINESS WIRE)--Aug. 22, 2000

The FeedRoom Inc., the leading broadband news video service, announced today that the company has secured $30 million in second-round funding from a group of investors led by Warburg, Pincus Equity Partners, L.P. Participants in the round included Tribune Ventures and NBC, as well as original investors Bear Stearns Constellation Ventures, Ridgewood Capital, I-Hatch Ventures, New York City Investment Fund, Angel Investors L.P., and Telesoft Partners. Ken Moelis, head of corporate finance for Donaldson Lufkin & Jenrette, and Rick Salomon, senior associate Rockefeller Family & Associates, both individual investors from the first round, participated in the second round as well.

"The FeedRoom's blend of experienced, visionary management, first-class content and cutting-edge technology makes it uniquely positioned to redefine how consumers access news and information," said David Libowitz, managing director of Warburg Pincus. "We believe that The FeedRoom will be at the forefront of providing video news on the Internet and other platforms, and are pleased that leading media companies such as Tribune and NBC share that vision as evidenced by the financial investments they have made in the company and the long-term operating agreements they have signed." The FeedRoom digitizes the latest news and informational video from television networks, local television stations, cable providers and independent producers, creating a video newsstand where viewers can watch the news on their own schedule, choose only the stories they want to see, email news video clips, chat and search through archival footage. The FeedRoom's management team includes former executives from CBS, NBC, ABC, Fox and Primedia. Tribune Company and NBC are not only contributing financially to The FeedRoom. Both recently announced last week that they are also working with The FeedRoom to create co-branded Web-based video news areas for each of their combined 29 television stations in the top 50 U.S. markets. These broadband destinations will offer highly localized news and informational video, making the stations' branded video content available 24 hours per day over the Internet. "We are pleased to partner with The FeedRoom," said Lisa Wiersma, vice president, Tribune Ventures. "The FeedRoom's innovative, broadband technology is defining the next generation of news on demand." "We looked at several companies with similar capabilities, and found that The FeedRoom's tool set provided the best technology and the best service," said Jay Ireland, president, NBC Television Stations Group. "Our partnership with The FeedRoom will enhance NBC's owned and operated stations' Web sites by enabling us to reach broadband users in a compelling way." The FeedRoom will use this round of funding to launch its national site, www.feedroom.com, and the co-branded Tribune and NBC sites to the public. The company will also add additional content partners and continue to expand its lead in convergence technology. "In the midst of a market-wide shakeout, to be endorsed by bedrock institutions like Warburg Pincus, Tribune Ventures and NBC, with their vast media expertise, is an enormous boost and an important signal to our other potential partners," said Jonathan Klein, FeedRoom president and CEO and former executive vice president of CBS News. "The FeedRoom is going to be around a good long while, with the financial firepower and quality content to define and dominate the broadband news delivery space." Warburg Pincus will hold two seats on the reconstituted FeedRoom board. Other board members include Peter Lund, former CEO of CBS, Cliff Friedman, managing partner of Constellation Ventures, Bob Gold, president of Ridgewood Capital, and Klein. Tribune and Intel Corporation hold board observer seats.

About The FeedRoom

The FeedRoom Inc. is an interactive broadband television news network, providing personalized rich-media newscasts to Internet users through its new Web site, www.FeedRoom.com and affiliated partners. The broadband-only site aggregates news "feeds" from leading networks, local TV and radio stations, cable channels, program producers and print sources, placing it into a consumer-friendly, easy-to-use Web site.

About Warburg Pincus

Warburg, Pincus Equity Partners, L.P. (WPEP) is a private equity fund initially capitalized at $5 billion in 1998. WPEP is managed by E.M. Warburg, Pincus & Co., LLC (Warburg, Pincus), a major global equity investment firm that has invested more than $9 billion in over 350 companies since 1971. The firm has considerable experience in funding software companies and Internet start-ups. Media and especially the opportunities created as a result of the Internet's impact on traditional media are important focus areas for Warburg, Pincus. Its past and present portfolio of investments includes Internet companies such as BEA Systems, Covad Communications, StarMedia, RadioWave.com, MediaMap Inc. and EarthWeb. Its media investments have included Renaissance Communications, Channel 5 Broadcasting, Radio Unica, Comcast/UK Cable, Information Holdings Inc. and Journal Register Company. More information is available at www.warburgpincus.com.