America Online, IAC, Hearst Corp., and Allen & Company Lead $16 Million Investment in Brightcove

Brightcove, an Internet TV pioneer, today announced the completionof a major strategic financing round, a groundbreaking video contentdistribution partnership with AOL, and the appointment of BarryDiller, Chairman and CEO of IAC/InterActiveCorp and Chairman ofExpedia, Inc., to the Brightcove Board of Directors.

AOL (NYSE:TWX), IAC/InterActiveCorp (Nasdaq:IACI), HearstCorporation, and Allen & Company LLC have joined with existingBrightcove investors Accel Partners and General Catalyst Partners toinvest $16.2 million in Brightcove. The investments complete a SeriesB financing round that will fuel the company's growth and the launchof its products and services.

In a separate industry milestone, Brightcove signed a significantand innovative content distribution agreement with AOL.

"We are thrilled to get both the backing of such a strong group ofstrategic investors and a major distribution agreement with AOL," saidJeremy Allaire, Brightcove Chairman and CEO. "The opportunities theseinvestors bring to Brightcove, combined with the relationships we arealready developing, put us in an incredible position to deliver ouropen Internet TV service and realize our mission to transform themedia landscape by enabling video publishers to build broadbandbusinesses that reach consumers directly through the Internet."

Brightcove offers a complete Internet TV service for videopublishers ranging from small independent producers to major mediacompanies who want to build their businesses by distributing andmonetizing their video programming through a variety of broadbandchannels including their own web properties, networks of webaffiliates, and other consumer-facing Internet services.

As a result of the content distribution agreement with AOL, thelargest investor in the Series B round, video publishers usingBrightcove will have the option to syndicate their video contentdirectly to AOL.com (http://www.aol.com), and the companies willmarket a co-branded version of the Brightcove service as theself-service platform for publishing video on AOL.com. Moreover,through the syndication to AOL, publishers will be able to generaterevenue from the advertising and pay media sales of their content onAOL.com and other video gateways on the AOL network of web properties.

"America Online's partnership and investment with Brightcovebuilds on AOL's existing, industry-leading video offering," saidJonathan F. Miller, Chairman & CEO of America Online, Inc. "By workingwith Brightcove, AOL is taking another important step forward inrounding-out our video offerings, providing consumers with a morerobust and complete menu to choose from. This initiative, inconjunction with other significant programming partnerships, includingour recent AOL-Warner Bros.' 'In2TV' announcement, takes AOL.com to awhole new level in this space, helping to advance our goal of beingthe best destination for video content on the web."

The partnership with AOL is the first in a series of commercialagreements related to content publishing and distribution of theBrightcove service. Brightcove is working with the other strategicinvestors as well as a variety of other companies in the industry on arange of commercial opportunities that will bring more content toconsumers and expand the reach that Brightcove can give videoproducers and programmers who want to build Internet TV businesses.

Brightcove is currently available in an invitation-only commercialpreview, which is being used by a variety of publishers ranging fromindependent producers to large cable broadcasters. Using the openonline service, publishers are able to reach consumers through a widerange of broadband channels on the Internet while generating revenuefrom advertising and pay media sales they control. Brightcove will begenerally available in 2006.

About Brightcove

Brightcove is an open Internet TV service that empowers videoproducers and programmers to build broadband businesses while givingviewers more choices and control over their use of video andtelevision. Founded by Internet pioneer Jeremy Allaire in 2004 andbased in Cambridge, Massachusetts, Brightcove is a venture-backedprivate company led by a management team that includes seniorexecutives from Allaire, Macromedia, ATG, Comcast, Lycos, News Corp.,MediaVest, and Discovery Networks.