Videoegg secures $15M in funding

SAN FRANCISCO, CA, September 5, 2007 – VideoEgg. Inc., the leading
video advertising network for online communities, today announced that
it has secured $15 million funding led by Focus Ventures. WPP, August
Capital, and Maveron also contributed to the round.

VideoEgg, which delivers video advertisements across many popular
social-networking web sites, such as Bebo, Hi5, Flixster and Facebook
applications will use the capital to grow its advertising network
business and accelerate product development efforts, including
innovative ad formats, targeting, and the most effective ways to
leverage social networks to build brands.

"The social net continues to take time and attention from traditional
media, especially in youth segments. We think traditional ad networks
are not meeting the needs of brand marketers who are looking for
viable alternatives to TV advertising," said Matt Sanchez, co-founder
and CEO of VideoEgg. "This funding will help us to continue to build
the next generation ad network and make advertising more social,
moving away from creating an impression to securing an actionable
brand engagement."

Demonstrating compelling industry growth, IDC recently stated that
internet advertising is the most important sector of the digital
marketplace and estimates that it will grow to $31.4 billion in 2011.
VideoEgg has been taking advantage of this growth through partnering
with some of the largest social networks, bringing outstanding
consumer reach to its advertising partners, which include Universal
Pictures, Discovery Networks, Electronic Arts, Ford, Nike, Unilever
and Nestlé. The company has demonstrated significant growth and
leadership since launching its ad network earlier this year, including
partnering with several leading social networks and signing on over a
hundred advertisers.

"It's all about the right mix to win in this market, which requires
insight into the needs of marketers with innovative technology and a
focus on rich media," said Steven Bird, general partner of Focus
Ventures. "VideoEgg has made significant traction selling advertising
solutions and is truly seen as an innovator in the ad world."

The strategic investment signals great confidence in VideoEgg's market
leadership and ability to reinvent the ad network around new ideas of
engagement for brands. The company will continue to expand to build
its unique solutions and serve brands across tier one ad markets.