Kleiner Perkins Caufield & Byers Leads Second Round Financing of Akimbo Systems; William R. Hearst III Becomes Board Chairman

Business Wire, July 12, 2004

SAN MATEO, Calif. -- Leading VC Firms Endorse Platform for Video-On-Demand Over the Internet to TV

Akimbo Systems today announced that it has secured $12 million in Series-B funding with Kleiner Perkins Caufield & Byers as the lead investor in the round. Joining Kleiner Perkins Caufield & Byers in funding Akimbo are Series-A investors Draper Fisher Jurvetson, Sprout Group and Zone Ventures. In addition, William R. Hearst III, partner at Kleiner Perkins Caufield & Byers, joins Akimbo's board as chairman. Other Akimbo board members are Akimbo CEO Josh Goldman, Akimbo Founder and Executive Vice President Steve Shannon, Sprout Group Principal Eduardo Briceno, Draper Fisher Managing Director Andreas Stavropoulos, Zone Ventures Managing Director Frank Creer and independent investor Jay Haynes.

Akimbo will launch the nation's largest video-on-demand service for television this summer. For the first time, consumers will be able to watch content on their TVs that has been delivered to them via the Internet. With content as diverse as independent films, extreme sports, news and foreign language programming, Akimbo introduces broadband-Internet subscribers to a whole new world of media, one that hasn't been available through traditional broadcast channels. Akimbo gives video providers an efficient and cost-effective way to reach TV audiences. By working with Akimbo, video providers can generate new revenues and new demand for content.

"The investment from Kleiner Perkins Caufield & Byers, along with the renewed backing from our existing investors, is a clear validation that Akimbo is pioneering the delivery of video over the Internet to the TV," said Goldman. "With this backing, we will be able to enter the market more aggressively, positioning Akimbo to become the leading Internet-delivery platform for video and audio content into the home."

"Akimbo is a bright star in the world of digital distribution. They have assembled an experienced team -- in management, consumer marketing, and technology -- and they have innovated in each of those areas," said Hearst. "We've watched this market, and this company, over the last few months and it's clear that Akimbo is a pioneer. We believe they will create a new industry around the selection, acquisition and delivery of big screen video and other rich media via the Internet."

Hearst joined Kleiner Perkins as a partner in 1995 and serves on the boards of Applied Minds, Juniper Networks, Oblix, OnFiber, and rgb media. He is also a director of the Hearst Corp. and Hearst-Argyle Television, and a fellow of the American Association for the Advancement of Science. He was editor and publisher of the San Francisco Examiner from 1984 until 1995.

Availability and Pricing

The Akimbo Service and the Akimbo Player will be available this summer. Consumers interested in ordering Akimbo can receive a special discount by signing up now as a charter subscriber at www.akimbo.com. The Akimbo Player will be priced at $229.99. A monthly subscription to the Akimbo Service will be $9.99. The Akimbo Player is expected to be in retail stores nationwide in late 2004.

About Akimbo

Akimbo is the first company to deliver DVD-quality video-on-demand to any television via a broadband-Internet connection. The Akimbo Service with the Akimbo Player lets consumers choose from thousands of hours of programs specifically suited to their tastes, so they can watch them whenever they choose. By partnering with Akimbo, video providers gain a new opportunity to cost-effectively reach targeted audiences with content ranging from special interest to broad appeal, without building new infrastructure. Akimbo partners with leading providers of specialty video to deliver more than 50 categories of unique entertainment, including film, comedy, music, health and fitness, sports, education, youth, foreign language, and cooking. With offices in Los Angeles and San Mateo, Calif., Akimbo is a privately held company funded by Kleiner Perkins Caufield & Byers, Draper Fisher Jurvetson, Sprout Group and Zone Ventures. The company is founded and managed by executives from ReplayTV, Macromedia, CNET Networks, mySimon, Microsoft and Apple. For more information, visit www.akimbo.com.