MediaSite  Brings Investment to Over $2 Million
in Second Financing Round
Leading Media Asset Management Software Vendor to Bring New Products to Expanded Markets

Pittsburgh, PA—May 14, 1998—MediaSite, Inc., the leading developer and supplier of integrated solutions for constructing and using network-based, searchable digital media libraries, has secured second-round financing of over $1.1 million, bringing total investment in the company to over $2 million. Funds will be used for new product development, including additional Internet-based products, and to increase sales, support, and marketing efforts to bring MediaSite’s leading MediaSite Digital Library System (TM) to customers across a broad range of industries.

The broad market of media asset management solutions, which includes tools for managing images, video, audio, and text, is one of today’s fastest growing technology market segments. MediaSite’s MediaSite System focuses specifically on the management of video assets. Currently, most video exists in analog format or as rudimentary digital archives with limited retrieval capabilities. Now, with the advent of multimedia enabled PCs, video compression, and networked computers, organizations can build a repository of digitized video information for reuse, repurpose, and information delivery. The market for media asset management reached over $507 million in 1997 and is expected to grow to $3.2 billion by the year 2001, according to GISTICS Incorporated, a research firm based in San Anselmo, CA.

Investment Sources
The private financing round was led by Birchmere Investments, Critical Path, Inc., and the Western Pennsylvania Adventure Capital Fund, all of which are focused on high technology investment in Western Pennsylvania.

"Birchmere’s investment in MediaSite demonstrates our confidence in the company’s leading technology and its ability to solve the video management needs of users in a unique way," said Sean Sebastian, managing principal of Birchmere Investments, Pittsburgh, PA. "In addition, the strong management team at MediaSite is in a prime position to take advantage of the expected rapid growth of the media asset management market over the next several years."

"We have experienced great demand for MediaSite’s MediaSite System from both known users of video and audio, such as film production and news organizations, as well as from organizations that are now increasing their use of video, including corporations, government and educational institutions," commented Mark Juliano, president and CEO of MediaSite, Inc. "This investment will allow MediaSite to address the demand for MediaSite by video users across a broad range of industries and will also enable continued development of expanded Internet solutions."

Digital Video Library Applications
With MediaSite, news broadcasters can quickly find existing video clips, increasing the quality and depth of programming. Film production houses can easily locate archived video, increasing productivity, and stock footage companies can sell content over the Internet, increasing their revenues and customer base. Corporations and government agencies can provide video-based training across an intranet to all employees, saving time and enhancing the quality of learning.

MediaSite
MediaSite, Inc. is the leading developer and supplier of integrated solutions for constructing and using network-based, searchable digital media libraries. MediaSite offers the MediaSite Digital Library System, a complete set of software and services for developing digital audio and video libraries, including MediaSite Logger (TM), MediaSite Builder (TM), MediaSite Finder (TM), MediaSpeak Solo (TM), and MediaSpeak Chorus (TM). With MediaSite’s MediaSite System, video becomes as searchable as text. The unique feature of MediaSite’s technical approach is the integrated application of speech recognition, language understanding, and image understanding technologies based on software components of Carnegie Mellon University’s Informedia Digital Video Library Project. For more information, visit www.mediasite.com.