MEDIASITE RECEIVES $6.8 MILLION IN FUNDING PLACED BY SATURN CAPITAL

Financing To Bring MediaSite Searchable Video Technology to Expanded Markets

PITTSBURGH, PA-- June 30, 1999-- Internet video search company MediaSite, Inc., the leading supplier of software and services to create searchable, Web-based video and audio Media Sites, has secured a third round of financing totaling $6.8 million from venture capital and private equity sources. The financing was placed by Saturn Capital, a Boston-based equity firm specializing in the capitalization of emerging growth companies. This latest financing round brings total investment in MediaSite to over $9.0 million, with additional funding expected to close in the near future.

Investment Sources

The financing round included major investments by venture capital and investment banking firms including Argent Partners, Birchmere Investments, Pernix Equity Investments, Inc. and RRZ Private Equity Fund. Additional financing was secured from private investors at leading corporations in the advertising, publishing and banking industries.

"Saturn focuses on a select group of companies that we believe have cutting-edge technology in industries and markets that are poised for tremendous growth," commented Jeff McCormick, managing director, Saturn Capital. "The MediaSite tools and technology are at the forefront of the emerging searchable video market."

"This latest capital infusion puts MediaSite in a solid financial position," said Patricia Rogan, CFO,  MediaSite. "MediaSite has already more than doubled in number of employees this year, and these funds will enable continued expansion in the areas of advanced technology development, sales and support, marketing and customer service."

"Our investment in MediaSite reflects our firm belief that the company has the people, the technology and the products to bring searchable Web-based video to a range of both consumer and business applications," said Gene Peck, president, RRZ Private Equity Fund.

"We have the products. We have the people. Now, we have the financial resources to execute our strategy to make video as searchable as text," added Mark Juliano, president and CEO, MediaSite.

About MediaSite Searchable Video Technology and Applications

With the explosion of streaming video over the Internet and the proliferation of multimedia PCs and browser technology, the need to make video as searchable as text has grown tremendously. This has created demand for the development of large-scale Media Sites (searchable video and audio focused websites) for Internet, extranet and intranet use across a range of markets.

The MediaSite solution offers customers a range of options to put searchable video online. Branded Media Sites allow content providers to seamlessly link from their existing websites to a MediaSite-developed custom Media Site. The MediaSite Syste(TM) provides tools, software, servers and services to enable Web portal customers, end users and integrators to build their own customized searchable video solution. MediaSite.net (www.mediasite.net) is the turnkey, online clearinghouse portal which allows search, preview and purchase of customers’ stock footage, TV news and educational content.

MediaSite Core Technology

MediaSite System components are used to build custom, Branded Media Sites and power MediaSite.net. The MediaSite System includes cataloging and search tools and software, as well as the database, video and Web server components necessary to manage, retrieve and play video over Internet and intranet-based Media Sites.

The MediaSite System includes the MediaSite AutoLogge(TM), MediaSite Logge(TM), MediaSite Builde(TM) and MediaSite WebFinde(TM) for cataloging, indexing, search and retrieval of video and audio content. Logger and Builder offer the most advanced creation tools available, integrating speech recognition, image recognition and language understanding technologies. MediaSite WebFinder is MediaSite’s leading search and retrieval system. The MediaSite System also includes the MediaSite Database Server, MediaSite Video Server and MediaSite WebServer to manage, retrieve and play video and audio technologies over the Internet.

About Saturn Capital

Saturn Capital is a Boston-based private equity firm which specializes in the capitalization of emerging growth companies in the telecommunications, e-commerce, computer and healthcare industries. These are industries in which Saturn, its advisors and investors have significant experience.

About  MediaSite

MediaSite, Inc. is the leading developer of software, systems and services to create searchable video and audio Media Sites. The company builds custom, Branded Media Sites, which offer searchable video with V-commerce(TM) purchasing. The MediaSite System is a core set of software, systems and servers required to develop a superior Media Site. ISLIP also operates a Web site (www.mediasite.net) for a complete, turnkey solution. With  MediaSite solutions, video becomes as searchable as text. The unique feature of the MediaSite technical approach is the integrated application of speech recognition, language understanding and image understanding technologies. For more information, visit www.mediasite.com.