The FeedRoom, Inc. Raises Over $5 Million In Series C Funding From New And Existing Investors

Market Wire, 20050229

The FeedRoom, Inc., a broadband network operating 70 streaming video web sites for Cisco, NBC, Tribune Company, Playboy, Netscape, Excite and iWon, among other customers, today announced that it has raised $5.4 million from both new and existing investors. The FeedRoom will use the capital to continue expanding its customer base and solidify its position as one of the top five video streaming publishers in the world, serving more than 14 million video clips per month to an audience of over 2 million unique users. Based on current revenue run rates, the raise takes The FeedRoom beyond profitability in the next several quarters.

Circle T Partners, a New York City-based hedge fund, joined existing investors Warburg Pincus, Ridgewood Capital, Constellation Ventures, Intel Capital, I-Hatch Ventures, the New York City Investment Fund, Peter Lund, former CEO of CBS, and Ken Moelis, head of U.S. investment banking for UBS Warburg, in the Series C capital raise. Seth Platt, Director of Private Equity and Venture Capital at Circle T, joins the FeedRoom's board of directors, which includes Bob Gold, President of Ridgewood Capital, Dennis Miller of Constellation Ventures, Peter Lund, and FeedRoom President & CEO Jon Klein.

"This infusion of capital will fuel our continuing growth trajectory, which in the past year has propelled The FeedRoom into the top tier of streaming applications alongside global brands such as AOL and Microsoft," said Klein, who was previously executive vice president of CBS News. "We're pleased to be able to raise additional funding under current market conditions from people who know our company intimately, as well as from experienced outside investors applying the strictest criteria. The FeedRoom is now positioned to fulfill its immense potential."

According to Platt, "The FeedRoom already holds a commanding lead in the provision of short-form video content to the PC. The company's technology engine, which enables the rapid processing, storage and streaming of thousands of video clips per day, also positions The FeedRoom to become the dominant provider of video to PDA's, mobile phones, and other interactive platforms."

"Since our original investment two years ago, we're pleased to have been part of the company's growth," said David Libowitz, a Warburg Pincus managing director. "The audience response to what is an outstanding experience on the web, combined with the company's impressive management team and revenue growth is the right formula for success as the Feedroom positions itself as a key player in the broadband future."

About The FeedRoom

Founded and managed by former network television executives, The FeedRoom, Inc. operates a network of 70 online video websites for Fortune 500 customers seeking to reach consumers, investors, analysts, trade writers and employees with a television-like presentation beamed directly to the desktop. The FeedRoom's unique content management system, robust streaming infrastructure, unique design and smooth integration of marketing messages earned ad:Tech's Best Media Site award in 2001. The FeedRoom network, which serves more than 14 million video clips per month to over 2 million viewers, can be explored at www.feedroom.com

About Circle T Partners

Circle T Partners is a family of hedge funds founded by Seth Tobias in 1996. The firm maintains offices in New York City, Philadelphia and Danbury, Connecticut.

About Warburg Pincus

Warburg Pincus is one of the largest private equity investment firms in the world. Working in partnership with management teams, Warburg Pincus has taken an active role in building businesses, including companies such as Dime Bancorp, Inc. (Nasdaq: DIMEZ), BEA Systems (Nasdaq: BEAS) and VERITAS Software Corp. (Nasdaq: VRTS). Since 1971, Warburg Pincus has invested approximately $12 billion in 450 companies in 29 countries. The firm currently has $10 billion under management, with more than $7 billion available for investment in a range of industries including: financial services, communications, healthcare and life sciences, information technology, media and natural resources. Throughout its 35-year history in private equity, Warburg Pincus has invested at all stages of a company's life cycle, from founding start-ups and providing growth capital to leading restructurings, recapitalizations and buy-outs. Further information is available at www.warburgpincus.com