CORRECTING and REPLACING INTENT MediaWorks Closes $10 Million in Series B Funding

Capital to accelerate growth as INTENT experiences sharp increase in demand for its digital distribution platform among content owners and advertisers

ATLANTA--(BUSINESS WIRE)--Please replace the release with the following corrected version due to multiple revisions.

“The entertainment industry and advertising communities have not scratched the surface of the market opportunities that exist on P2P and social online networks. INTENT, however, is transforming the business of digital entertainment”

The corrected release reads:

INTENT MEDIAWORKS CLOSES $10 MILLION IN SERIES B FUNDING

Capital to accelerate growth as INTENT experiences sharp increase in demand for its digital distribution platform among content owners and advertisers

INTENT MediaWorks, the leading provider of technology for the distribution of licensed digital media content and advertising via the Internet, today announced it has closed $10 million in Series B funding, led by Greycroft Partners, SoftBank Capital, Bertelsmann Digital Media Investments (BDMI) and Allen & Co. The additional capital will be used to support product development, infrastructure build-out and marketing as INTENT continues to see growing demand for its fully integrated digital distribution platform.

INTENT, co-founded by Les Ottolenghi and Glenn Martin, is the first company to enable providers of digital entertainment to effectively deliver licensed music, video, film, games and software via the Internet across multiple distribution channels in a legal, profitable and consumer-friendly manner. INTENT’s digital platform makes digital music and video available to the millions of people using open P2P applications, Web sites, social networks, blogs and IPTV.

“The entertainment industry and advertising communities have not scratched the surface of the market opportunities that exist on P2P and social online networks. INTENT, however, is transforming the business of digital entertainment,” said Drew Lipsher, partner with Greycroft. “INTENT gives content owners and advertisers an unprecedented opportunity to implement specific distribution, marketing and monetization strategies for each market or channel they choose to pursue. With INTENT, consumers can acquire licensed music and video on their terms, content owners are compensated for their work and advertisers reach a vast and attractive audience. INTENT MediaWorks is poised to revolutionize the online distribution of music and video.”

INTENT will leverage the new investment to capitalize on significant growing industry demand for its proprietary platform which distributes and monetizes online music and video over peer-to-peer (P2P) and online social networks. INTENT currently works with content providers like Nettwerk Music Group (Barenaked Ladies, Sarah McLachlan and Avril Lavigne), Violator Management (50 Cent, Diddy, Three 6 Mafia and Papoose), SLAMjamz (Public Enemy) and KOCH Entertainment, America’s largest independently distributed record label.

In addition to artists and entertainment content owners, advertisers are eager to take advantage of the enormous market shift to a digital lifestyle. INTENT makes this possible by bringing an advertiser’s message directly to consumers where they are accessing, downloading and sharing digital music and video. INTENT’s content-level approach to advertising produces better costs per impression (CPM) and the kind of measurable advertising that has not been available to them through traditional TV, radio or print media.

“We’re privileged to have Greycroft, SoftBank Capital, BDMI and Allen & Co. as investors. They are among the most prominent in the media and venture industry,” said Gregg Freishtat, CEO of INTENT MediaWorks. “There are extraordinary opportunities for businesses that effectively engage the millions of fans around the world that have grown accustomed to acquiring and sharing music and video online. Rather than asking these consumers to change their behavior, INTENT has developed technologies and business models that leverage consumers existing behavior and expectations while protecting the legal rights of our clients. INTENT offers artists, content owners and advertisers the unique ability to tap into and capitalize upon the explosive growth of P2P and social networks. With the support of our distinguished investment team, INTENT will be at the forefront of the movement to make P2P and social networks the dominant distribution channels for mainstream, legitimate media.”

About Greycroft

Greycroft Partners is a venture capital partnership formed to invest in promising digital media companies, including both business- and consumer-focused ventures. The firm’s $75 million fund includes participation from leading corporate executives around the world. Greycroft invests between $500,000 and $3 million at inception, increasing on a staged basis that amount over time. Portfolio companies benefit from active, hands-on assistance in all phases of expansion, including marketing, financing, and management development. Located in New York City, Greycroft also leverages an extensive network of media and technology industry connections to help its companies gain visibility, build strategic relationships, and successfully bring their products to market.

About SoftBank Capital

SoftBank Capital is an independent venture capital firm focused on high-growth, technology-based businesses benefiting from the rapid deployment and adoption of broadband and mobile technologies. Through its current fund, SoftBank Capital Technology Fund III L.P., the firm has invested to date in Anystream, Associated Content, Aequus Technologies, Beliefnet, Goodmail Systems, The Huffington Post, LiteScape Technologies, Nellymoser, The NewsMarket, Perpetual Entertainment, Pivot Solutions, PureVideo, Sermo, Thumbplay, V-Enable and Voxant. For more about SoftBank Capital see www.softbank.com.

About Bertelsmann Digital Media Investments (BDMI)

BDMI is a strategic venture investor focused on innovative digital media technologies, products, and distribution channels across the globe. BDMI is a wholly owned subsidiary of Bertelsmann AG, a leading global media company with consolidated revenues of over U.S. $25 billion. With more than 600 individual companies, Bertelsmann has significant interests in all areas of media, including books, magazines, music, television, direct marketing, and media services.

About Allen & Co.

Allen & Co. is one of the largest investment partners in the entertainment industry. The firm has advised on some of the biggest transactions in the sector’s history, including Seagram’s combination with Universal Studios, Westinghouse’s purchase of CBS and the acquisition of Capital Cities/ABC by the Walt Disney Company. In addition to M&A advisory, Allen & Co. provides underwriting, private equity, venture capital and money management services. In 2004, Allen & Co. served as one of the underwriters for Google’s much anticipated IPO.

About INTENT MediaWorks

INTENT MediaWorks is the leading provider of technology for the legal and profitable distribution of licensed digital media content and advertising via the Internet and P2P file trading systems. Currently being used by several large music companies and independent artists, INTENT was named Best New Digital Technology at the 2006 Digital Music Conference. For more information on INTENT MediaWorks, please visit www.intentmediaworks.com.