PiXPO Inc.

PiXPO Inc.

May 19, 2006 10:03 ET

PiXPO Inc. Closes $6.5 Million Series a Financing Round to Grow Online Personal Broadcasting

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 19, 2006) -

Madrona Venture Group leads syndicate of US and Canadian venture funds backing PiXPO's move to enable millions of online video enthusiasts to broadcast user generated content.

PiXPO Inc. today announced the completion of their US $6.5 million Series A financing round, lead by Seattle's Madrona Ventures. Also participating in the round were Canadian investors including Working Opportunity Fund (managed by GrowthWorks Capital Ltd.), Yaletown Venture Partners, Springbank TechVentures, and company President and CEO Ron Stevens. Concurrent with the close of financing, Matt McIlwain of Madrona Venture Group and Jim Charlton of GrowthWorks Capital join PiXPO's Board of Directors.

The round comes on the heels of the May 3 launch of PiXPO 3.0 (www.pixpo.com) at the Connections Digital Home Conference. PiXPO is the first solution to let users create online video broadcast sites and host them instantly from their PCs without any uploading or video optimization hurdles. PiXPO facilitates the unlimited broadcast of videos, photos and audio. Leveraging their innovative "Peer to Web" technology and scalable hybrid network, PiXPO makes it possible for consumers to broadcast to thousands of viewers from a single PC.

PiXPO President and CEO Ron Stevens says, "Pixpo's mission is to democratize broadcasting by enabling users of any device connected to the Internet to create a personal broadcast station. Our personal broadcasting strategy challenges everyone to rethink content distribution and creates opportunities that were not available before. We want all Internet users to be personal broadcasters and to have freedom to get their creative content in front of a relevant community."

"After looking at many digital media companies, we found PiXPO's personal broadcasting service to have unique appeal and tremendous potential. Empowering every individual to be a personal broadcaster creates unlimited opportunities in our broadband, connected world," says Madrona Ventures Managing Director Matt McIlwain.

"We are excited about PiXPO's technology and the prospects personal broadcasting offers in the digital media space. PiXPO will be to broadcasting to what blogging has been to journalism," says Jim Charlton of GrowthWorks Capital "PiXPO's peer to web technology allows a level of control not available through other services."

Consumers can download PiXPO for free at www.pixpo.com.

About Pixpo

Pixpo's aim is to turn the broadcast model upside down by enabling effective personal broadcasts into focused and relevant communities. Pixpo is a technology leader in the digital media broadcast industry and is moving towards a Web 2.0 platform to be launched later this summer. This new platform will allow broadcasters the opportunity to profit through their personal media, providing a unique revenue opportunity to millions of broadcasters worldwide." PiXPO is a recipient of PC Magazine's Editor's Choice Award and has won numerous top industry awards with their earlier PiXPO photo product.

For more information visit www.pixpo.com.

About Madrona Venture Group

Madrona Venture Group, headquartered in Seattle, is a top-tier venture capital firm that brings together the resources, experience, teams and strategic relationships to build the next generation of leading technology companies in the Pacific Northwest. Over more than 10 years, Madrona has repeatedly demonstrated an ability to recognize high-quality teams and actively help them maximize their potential. Madrona's veteran team focuses on early-stage investing in Internet, software, wireless and research commercialization. Portfolio companies leverage Madrona's expansive network of relationships with technology thought leaders, established and emerging companies and channel partners, financial institutions and universities. Madrona Venture Group has over $400 million under management and invests in companies such as Impinj, Isilon Systems and ShareBuilder. For more information, visit www.madrona.com.

About GrowthWorks

GrowthWorks refers to affiliates of GrowthWorks Ltd. GrowthWorks (www.growthworks.ca) is a recognized leader in venture capital fund management with proven experience in the raising and managing of capital. GrowthWorks™ managed funds, including the Working Opportunity Fund (EVCC) Ltd., GrowthWorks Canadian Fund, GrowthWorks Commercialization Fund, and GrowthWorks Atlantic Venture Fund, have a combined $700 million in assets. GrowthWorks has a team of skilled and knowledgeable investment professionals with a combined 200 years of experience. The investment team has a proven track record of identifying, analyzing, and structuring investments in emerging sectors. GrowthWorks is a registered trademark of GrowthWorks Capital Ltd.

About Yaletown Venture Partners

Based in Vancouver, B.C., Yaletown is a venture capital firm that invests time, expertise, and money in seed and early-stage technology companies. Yaletown is a hard-working partner of choice for experienced technology entrepreneurs starting new companies in Western Canada and for investment partners seeking quality deal opportunities. Backed by several of Canada's largest institutional investors, Yaletown focuses on Western Canada's vibrant information technology and energy technology clusters. Yaletown's four investing partners bring a combined seventy years of early-stage company-building and transaction expertise to each portfolio company. For more information, visit www.yaletown.com.

About SpringBank TechVentures LP

SpringBank TechVentures is a venture capital fund focused on venture and private equity investments in companies developing the enabling technologies, infrastructure and services to support the growth sectors of information, communications and technology. SBTV Partners have entrepreneurial startup and operational backgrounds that engages a "hands-on" approach to growing its Investee Companies. Each Director of the General Partner brings a strong sense of vision, a diversified skill set, a broad network of contacts, and a strong track record of leading and developing startup companies. www.sbtechventures.com.


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