AudioAudit Closes Series A Round with Financing from General Catalyst Partners, Polaris Venture Partners, and Ridgewood Capital

Business Wire, March 19, 2003

Business Editors

PARAMUS, N.J.--(BUSINESS WIRE)--March 19, 2003

Broadcast Advertising Technology Services Provider Secures Funding

to Continue to Expand its Product Development, Marketing,

and Client Service Capabilities

AudioAudit, a leading provider of patented broadcast verification technology services for the advertising, cable, and broadcast industries, announced today that it has completed its Series A round with $15.0 million in financing from General Catalyst Partners, Polaris Venture Partners, and Ridgewood Capital.

The securing of the Series A financing will allow AudioAudit to continue to expand the scope of its innovative AdVantage(R) technology platform, which enables advertising agencies, advertisers, and television broadcasters to maximize the value of their investments in broadcast advertisements.

"General Catalyst, Polaris, and Ridgewood are quality investors and I'm pleased to be able to draw on their insight and expertise," said Paul Hummel, president and CEO of AudioAudit. "This financing will enable us to continue our leadership position by continuing to provide the broadcast advertising industry with quality service and solutions."

AudioAudit's patented verification services enable advertising agencies and corporate advertising departments to verify that a scheduled advertisement has been broadcast in the right market, on the right outlet, to the right audience, at the right time. The Company's encoding and detection technology, coupled with secure, Web-based analytic reporting tools, enables agencies and broadcasters to accomplish the verification and adjustment process in less than 24 hours versus the industry-norm of 30 to 45 days using manual processing. This increased accuracy and automation enables advertising agencies to more efficiently manage an advertising campaign and maximize its effectiveness. For broadcasters, AudioAudit's solutions enable more accurate reporting and increased customer satisfaction; broadcasters also reduce costs associated with crediting advertisers for mistakes or non-broadcasts.

"AudioAudit's technology creates a more efficient way for advertisers, agencies, and broadcasters to place, measure, track, and analyze the efficacy of their buying plans and the advertising itself. This is a perfect instance of an industry undergoing a sea change and technology creating a better way of doing business," said Joel Cutler, managing director, General Catalyst Partners. "Since their founding, AudioAudit has consistently proven that through their innovative technology and focus on quality, the overall broadcast advertising industry can be greatly enhanced, enabling a much higher level of returns on advertising dollars for all parties involved in the media buying process. We are pleased to be a part of this team."

In February, the Company formally introduced its AdVantage platform, which enables users to ensure that the correct broadcast advertisements reach the right audience at the right time, on the right date, in the purchased market, and over the purchased broadcast outlet. AudioAudit's ability to help customers improve business processes, increase efficiencies, and strengthen customer relationships, has helped the Company form long-term partnerships with several leading media buying organizations and advertising agencies, including Interpublic Group's Lowe Worldwide.

About AudioAudit

AudioAudit is a leading provider of innovative, patented broadcast verification technology products that create new standards of accountability and communication in the advertising and broadcast industries. The Company's family of automated digital solutions are specifically designed for the accurate capture, retention, and reporting of transmitted encoded broadcast content - dramatically reducing the human error created by manual broadcast tasks. Its flagship technology platform, AdVantage(R), offers unique media verification capabilities while enabling customers to increase productivity, operational efficiency, and accuracy. AudioAudit's products help streamline business processes unique to the advertising and broadcast industries, including coop reporting and activity tracking. For more information about AudioAudit's business solutions, visit www.audioaudit.com

About General Catalyst Partners

Founded in 2000 and headquartered in Cambridge, Mass., General Catalyst Partners is the private equity partner for entrepreneurs, early-stage companies and transformational companies that seek to build innovative software and technology platforms into industry-leading companies. By leveraging its principals' deep operational expertise, General Catalyst Partners helps portfolio companies improve their likelihood of success through business building and partnership development assistance. Current portfolio companies include: AudioAudit (www.audioaudit.com); Avaki Corporation (www.avaki.com); IMlogic (www.imlogic.com); Imprivata (www.imprivata.com); Laszlo Systems (www.laszlosystems.com); m-Qube (www.m-qube.com); Narad Networks (www.naradnetworks.com); National Leisure Group (www.nlg.com); OutStart (www.outstart.com); ProfitLogic (www.profitlogic.com); Recruitsoft (www.recruitsoft.com); SmartBargains (www.smartbargains.com); Upromise (www.upromise.com); and Venetica (www.venetica.com). For more information, please visit www.generalcatalyst.com.