Technology Crossover Ventures Purchases Minority Stake in Intelligent Beauty

Business Wire, Sept 18, 2007

MANHATTAN BEACH, Calif. -- Intelligent Beauty Inc., a leader in building prestige beauty brands through innovative e-commerce technology and marketing methodologies, announced that Technology Crossover Ventures (TCV) has acquired a minority interest in the company.

The investment marks the first external round of funding received to date. Intelligent Beauty will use the capital to scale and expand its portfolio of brands through strategic acquisitions and increased media purchasing and marketing efforts.

"In less than two years, we've built an incredible team, developed proprietary technologies, proven our business model and reached profitability," says Intelligent Beauty co-founder and co-CEO Adam Goldenberg. "With our unique business model, our marketing expertise and our proprietary technologies, we are able to bring new brands to market in about a third the time it takes traditional companies. This funding opens the door for us to continue our dramatic growth by launching or acquiring additional brands and multiplying our marketing efforts for all IB brands."

Created to take advantage of new digital marketing and distribution channels -- in particular, the Internet and home shopping channels -- Intelligent Beauty is the first beauty brand incubator with a full in-house interactive advertising agency, bringing together comprehensive knowledge of both branding and Internet advertising. Headquartered in Manhattan Beach, Calif., the company has 55 employees.

"As a company that focuses on new technologies and distribution channels, we couldn't ask for a better investment partner than TCV," says Intelligent Beauty co-founder and co-CEO Don Ressler. "TCV has a proven track record for helping to build high-growth e-commerce companies like Intelligent Beauty. We look forward to working with TCV to capitalize on the unprecedented growth opportunities of the Internet and home shopping."

Ian Picache of Technology Crossover Ventures will join Intelligent Beauty's board of directors.

"Intelligent Beauty is a very exciting company. It has built a strong team; created some terrific products; and developed a highly profitable, unique, and fast-growing business model in a huge market," says Picache. "The company represents a strategic addition to one of our key focus areas, consumer Internet, where we have had significant success with companies such as Expedia, Netflix, and Fandango, among others. We see great future potential and will work hard with the team at Intelligent Beauty to continue its rapid growth."

Intelligent Beauty Executive Chairman Bob Johnson and co-CEOs Adam Goldenberg and Don Ressler will maintain majority ownership of the company. Terms of the transaction were not disclosed.

About Intelligent Beauty, Inc.

Founded in January 2006, Intelligent Beauty is focused on building beauty brands through analytically driven Internet marketing. Intelligent Beauty takes a comprehensive, start-to-finish approach to transforming ideas into brands, from product development in our fully functional lab to the industry's first and only in-house interactive advertising agency that specializes in the nuances of the beauty sector.

Having this unique combination of competencies under one roof enables Intelligent Beauty to build brand recognition much more swiftly and efficiently than traditional methods and to take advantage of shifting trends and new market opportunities. The result is brands that are one step ahead of an ever-evolving industry and are uniquely positioned for both rapid and long-term, sustainable growth. For more information on Intelligent Beauty, visit www.ibinc.com.

About TCV:

Technology Crossover Ventures (TCV), founded in 1995, is a leading provider of growth capital to technology companies, providing funds to later-stage private and public companies. With $4.7 billion in capital under management, TCV has made growth equity and recapitalization investments in over 150 companies leading to 42 initial public offerings and more than 30 strategic sales or mergers. Capital investments range from $20 million to over $200 million.

TCV employs a crossover investment model, which combines venture capital with public market investing and enables TCV to continue to invest in its portfolio companies at the IPO and beyond. Representative investments include Altiris, eHarmony, Expedia, Global360, InPhonic, Liquidnet, Netflix, RealNetworks, Redback Networks, Solarc, Solect Technology, Webroot, and Xylan. TCV has 10 partners and is headquartered in Palo Alto, California. For more information about TCV, visit www.tcv.com.