Reactrix Completes $45M Financing With New Investments From the D. E. Shaw Group and Menlo Ventures

REDWOOD CITY, Calif., Feb. 15 /PRNewswire/ — Reactrix Systems, Inc., an interactive media company with a breakthrough ‘reactive media’ network spanning malls and theaters across the nation, has completed its Series D institutional equity financing, totaling $45 million. The financing, the largest in the company’s history, was led by new investors the D. E. Shaw group and Menlo Ventures, and included participation from existing investors Mobius Venture Capital, Thomas Weisel Venture Partners and Worldview Technology Partners. Montgomery & Company represented Reactrix in the financing.

This financing comes at the heels of a highly successful 2006 for Reactrix, which included the expansion of its network to 160 malls and theaters nationwide as well as advertising placements by numerous major brands, including AOL, Clorox, Coca-Cola, DaimlerChrysler, DirecTV, Hilton, Sprint, and Visa. “Reactrix now has the financial resources it needs to continue the successful expansion of our uniquely engaging interactive media network in the U.S. and abroad,” said Reactrix Chairman and CEO Mike Ribero. “With revenues almost tripling in 2006, we look forward to similar growth in 2007 driven by our ever-expanding list of blue-chip advertisers.”

Proceeds from this financing will be used to expand Reactrix’s mall and theater network and facilitate expansion into new venues in the United States and select international markets. The funding will also be used to further develop next generation technologies as well as provide working capital.

Reactrix attracted new investors the D. E. Shaw group and Menlo Ventures by achieving what no other media company has been able to — secure exclusive commitments from the largest indoor shopping center REITs, as well as several key theater operators. This paves the way for a media network whose audience reach already exceeds that of many established cable and broadcast television networks.

“We knew we had a winner when advertisers described their experience with the Reactrix Media Network with the same level of conviction and zeal as Reactrix’s own management team,” said Andre Turenne of the D. E. Shaw group.

Pravin A. Vazirani, managing director, of Menlo Ventures added, “Reactrix has many of the critical success factors we look for in our investments. Reactrix’s combination of a breakthrough, disruptive and defensible technology, Fortune 500 advertisers, experienced management and a marketplace in dire need of new ways to reach today’s consumer gives us great optimism about the company’s global prospects.”

Mr. Turenne and Mr. Vazirani have also joined the Reactrix board of directors that includes: Dave Crowder of Thomas Weisel Venture Partners; Tim Koogle, former CEO of Yahoo; Heidi Roizen of Mobius Venture Capital; Colin Savage of Worldview Technology Partners; and Mike Ribero, Chairman and CEO of Reactrix.

About Reactrix

Reactrix Systems, Inc. (http://www.reactrix.com/) is the developer and marketer of a unique new interactive medium that projects vivid branded messages that instantly respond to people who walk across or gesture over the display area, creating an immersive media experience that makes any surface “come alive.” The company’s innovative media network for advertising, retail and entertainment applications allows advertisers to dynamically reach and interact with millions of consumers where they shop and spend their entertainment dollars.

The Reactrix Media Network is currently available in over 160 shopping centers, movie theaters and other public spaces. Traffic in these venues, located in the top 20 U.S. markets and other areas nationwide, exceeds 138 million monthly.

About the D. E. Shaw Group

The D. E. Shaw group is a global investment and technology development firm. Since its organization in 1988, the firm has earned an international reputation for financial innovation, technological leadership, and an extraordinarily distinguished staff. The D. E. Shaw group encompasses a number of closely related entities with approximately 1,000 employees, $25 billion in aggregate investment capital, and offices in New York, London, Silicon Valley, Houston, Kansas City, San Francisco, Washington D.C., Bermuda, and Hyderabad and Gurgaon, India.

About Menlo Ventures

Since 1976, Menlo Ventures has helped visionary leaders turn technical innovations into world-class companies. Many of these companies have become leaders in their respective markets, including LSI Logic, UUNET Technologies, Xros, Cyras Systems, Hotmail Corporation, Ascend Communications and Clarify. The company currently focuses its investments in the areas of communications software, Internet infrastructure, semiconductors, storage and computer hardware.

About Mobius Venture Capital

Mobius Venture Capital is an early-stage capital fund with offices in Palo Alto, California and Superior, Colorado. Early investments included Yahoo/Geocitites, Eloan, Verisign and E*Trade. The current fund, Mobius VI, has been invested in over sixty innovative technology companies. Companies in Mobius’ current portfolio include Infinera, Danger, Ecast, FeedBurner, Impinj, LRN, Perfect Commerce, Perpetual Entertainment, Postini, Quova, Reactrix, SkyPilot Networks, Sling Media, Technorati and deCarta.

About Thomas Weisel Venture Partners

Thomas Weisel Venture Partners (TWVP) is an early-stage venture capital firm that invests in emerging information technology companies. As a partner with a long-term perspective, the firm plays an active role in helping entrepreneurs turn ideas into sustainable businesses. TWVP portfolio companies benefit from the knowledge, energy and resources of the TWVP team and from TWVP’s commitment to working with management to build industry- leading companies.

About Worldview Technology Partners

Worldview Technology Partners is a leading venture capital firm focused on investing in and building leading U.S. technology companies. The company’s comprehensive, industry-leading business development services help portfolio companies succeed in U.S. and international markets. With a 12-year track record of successful technology investing and close to $1.4 billion under management, the Worldview team — now on its fourth fund — has both the experience and the resources to invest in a broad range of information technology markets, including communications, semiconductors, enterprise infrastructure and software.

About Montgomery & Co., LLC

Founded in 1986 to provide strategic capital-formation advisory services to leading aerospace, defense and related technology companies, today, Montgomery & Co. provides research, sales & trading coverage, strategic advisory and M&A services, and public and private financings to growth companies in the information technology, communications, healthcare and media & entertainment businesses.

As part of the Equity Capital Markets Group, the research analysts’ mandate is to find undercovered growth companies in technology and healthcare to provide value-added services to the Firm’s clients.

Based in Santa Monica, CA, Montgomery & Co. also has offices in San Diego, San Francisco, and Seattle. Montgomery & Co. is a member of the National Association of Security Dealers, Inc. (NASD), and its professional associates are registered with the NASD-SIPC. For more information, please visit, http://www.monty.com/.

Reactrix and Reactrix Media Network are registered trademarks of Reactrix Systems, Inc. All other trade names are the property of their respective owners.

This release is available on the KCSA Worldwide Web site at http://www.kcsa.com/.

   CONTACT:  Greg Pitkoff / Rhonda Lipschutz             KCSA Worldwide             (212) 896-1291 / (212) 896-1251             gpitkoff@kcsa.com / rlipschutz@kcsa.com  

Reactrix Systems, Inc.

CONTACT: Greg Pitkoff, +1-212-896-1291, gpitkoff@kcsa.com, or RhondaLipschutz, +1-212-896-1251, rlipschutz@kcsa.com, both of KCSA Worldwide

Web site: http://www.reactrix.com/http://www.monty.com/http://www.kcsa.com/