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Ripe Digital Entertainment Announces $32 Million Series B Investment By Hearst-Argyle, Time Warner, Columbia Capital, and Rho Ventures

Posted on: Monday, 9 October 2006, 09:00 CDT

LOS ANGELES, Oct. 9 /PRNewswire/ -- On Demand television and emerging entertainment leader Ripe Digital Entertainment (RDE) announced today that it has received $32 million in Series B financing from Hearst-Argyle, Time Warner Investments, Columbia Capital LLC, and Rho Ventures. Ranked as one of the largest investments in a digital entertainment company made in 2006, RDE will utilize this infusion of capital to launch additional On Demand television networks, build its broadband and mobile strategy and accelerate its development of measurable advertising and compelling programming.

RDE is a first mover in monetizing digital content and is pioneering new forms of television and video that consumers can watch anytime and anywhere, over cable TV, broadband and mobile. The Company's business model provides the insertion of new forms of advertisement into programming with measurement of actual viewership. To date, RDE has launched two multiplatform On Demand networks, RipeTV and OctaneTV, secured advertising from major marketers including Dodge, Cingular, Procter & Gamble and Warner Bros. Video On Demand, and enjoys simultaneous distribution across broadband, mobile, and the more than 30 million Time Warner and Comcast cable subscriber households.

The Company's male focused network, RipeTV has achieved more views on the VOD platform than the majority of others on Cable VOD and with millions of video views monthly, the network outpaces many Internet sites serving the same demographic. Advertisers are benefiting from niche audience reach, and the meaningful reporting and measurement that the Company provides across all platforms. Its patent pending advertising delivery, Connective Advertising(R), connects content and commercials in a fashion providing unprecedented effectiveness and ROI.

"The tremendous investment community response allowed us to choose the best group of investment partners," said Ryan Magnussen, chief executive officer of RDE. "This infusion of cash enables Ripe to produce the best content, and work with elite distribution and talent partners for our current and future networks. We'll be staking a significant claim around a seismic transference of the $70 billion television ad market from traditional to digital entertainment."

"We showed our belief in Ripe a year ago with an initial investment. The company's track record of success this last year has only further strengthened our confidence," said Steven A. Hobbs, Executive Vice President and Chief Legal and Development Officer, Hearst-Argyle Television, Inc. "We are thrilled to have Time Warner, Columbia and Rho join us as partners to boost Ripe's entrepreneurial vigor as it pursues its innovative business model in the television and entertainment industry."

"Ripe's creative advertising approach coupled with the measurability of the emerging on-demand media platforms through which Ripe distributes its content, give it an edge in the race to capture new media ad dollars," said Rachel Lam, SVP and group managing director of Time Warner Investments. "We're confident that Ripe's experienced management team can expand on its impressive early success in attracting distribution and blue chip advertisers as it launches new networks, increases VOD carriage, markets its broadband offerings, and sells advertising across these emerging distribution platforms."

"Columbia Capital is bullish about on demand content as a new form of significant entertainment and advertising revenue," said Jeff Patterson, Partner of Columbia Capital. "Ripe offers the complete package -- creative programming, premiere advertisers, and distribution channels to create revenue streams with scaleable profitability."

Lazard acted as an advisor to and placement agent on behalf of RDE in the Series B round of financing.

ABOUT RIPE DIGITAL ENTERTAINMENT

Ripe Digital Entertainment (RDE) is a leader in Video On-Demand (VOD) digital entertainment and the first to develop a multi-platform video network. RDE aggregates and produces short-form video programming targeted at young adult audiences, with simultaneous distribution over cable, broadband, and wireless platforms. RDE pioneered "Connective Advertising (R)" to give marketers and viewers an enhanced video experience across all platforms. The Company is the first to sell television advertising on a cost per view basis, a model normally associated to Google on the Internet.

ABOUT HEARST ARGYLE TELEVISION

Hearst-Argyle Television, Inc. owns 26 television stations, and manages an additional three television and two radio stations, in geographically diverse U.S. markets. The Company's television stations reach approximately 18% of U.S. TV households, making it one of America's largest television station groups. Hearst-Argyle owns 12 ABC-affiliated stations, and manages an additional ABC station owned by Hearst Corporation, and is the largest ABC affiliate group. The Company also owns 10 NBC affiliates, and is the second- largest NBC affiliate owner, and owns two CBS affiliates.

Hearst-Argyle also is a leader in the convergence of local broadcast television and the Internet through its partnership with Internet Broadcasting, and in the application of digital broadcast spectrum for new local informational services through its Weather Plus partnership with NBC and various NBC affiliate groups. http://www.hearstargyle.com/.

ABOUT TIME WARNER INVESTMENTS

The Time Warner Investments group targets non-control strategic investments that have a clear impact on Time Warner's divisional operations and directly enhance the Company's ability to meet specific strategic goals. Time Warner Inc. is a leading media and entertainment company, whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing.

ABOUT COLUMBIA CAPITAL

Columbia Capital is a venture capital firm specializing in the media, communications, and information technology industries. Founded in 1989, Columbia Capital has helped to establish over 100 companies and manages approximately $2 billion in capital. For additional information, visit Columbia Capital at http://www.colcap.com/.

ABOUT RHO VENTURES

Rho has been investing in venture-stage companies since its inception in 1981. Venture capital funds under management currently exceed $1.5 billion. Rho Ventures has invested in over 175 private companies and helped build market leaders across many high growth industries. Previous notable investments include Ciena Corporation, Commerce One, Compaq Computer Corporation, Human Genome Sciences, Inc., iVillage, MedImmune, and Vicuron. More information on Rho can be found at http://www.rho.com/.

Ripe Digital Entertainment

CONTACT: Sallie Olmsted, +1-310-854-8124, solmsted@rogersandcowan.com,or Shawn Smith, +1-310-854-8187, snsmith@rogersandcowan.com, both for RipeDigital Entertainment

Source: PRNewswire

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