SOURCE: ROO Group, Inc.

August 23, 2005 09:30 ET

ROO Completes Private Equity Financing

NEW YORK, NY -- (MARKET WIRE) -- August 23, 2005 -- ROO Group Inc. (OTC BB: ROOG), an Online Broadcast Network, today announced it has successfully completed a private equity financing for total gross proceeds of $5.75 million dollars. $3.4 million of the proceeds were used to pay off and satisfy in full the company's convertible debt obligations. The company has announced that it will complete a 1 for 50 reverse stock split of its common stock. The financing was completed by Burnham Hill Partners, a division of Pali Capital, Inc. and Brimberg and Co.

"ROO was founded four years ago with the notion that the traditional TV entertainment experience was in the process of migrating to the Internet. Today it is clear that this transformation is reaching a rapid growth phase," said ROO CEO Robert Petty. "With the new financing complete, we believe ROO is positioned to take advantage of this transformation and become a top online broadcaster by uniting web sites, advertisers and content creators through our proprietary technology platform."

ROO is a leading online broadcaster delivering over 40 million videos per month through its vast network of affiliate web sites including Verizon broadband beat http://broadbandbeat.verizon.net/ and Music.com http://www.music.com/video/. ROO generates revenue through in-stream TV style ads broadcast during user selected on-demand content. Recent advertisers on the ROO network include Pfizer, Microsoft, Walgreens, Honda and Hyundai.

About ROO

ROO Group Inc. ("ROO") is a global provider of digital media solutions and technology that enables the activation, marketing and distribution of digital media video content over the Internet and emerging broadcasting platforms such as set top boxes and wireless. ROO Media www.roomedia.com a subsidiary of ROO offers turn-key video solutions for businesses seeking to improve their web presence with video broadcasts or broadcast their own latest video clips. ROO helps business advertise their latest offering with interactive advertising solutions, 15-30 second video commercials with a linked call to action and played simultaneously with topical video content in a television style format over the Internet. More information can be obtained from ROO's web site located at www.roogroupinc.com.

Certain statements in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of ROO Group Inc ("the Company"), or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its plan of operations when needed; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov.

Contact Information

  • Media Contacts

    John Muscari
    212-651-4225
    Email Contact

    Investor Relations Contact:
    Corporate Communications Group, Inc.
    David Pomerantz
    516-791-0000 ext. 102
    Email Contact