Verimatrix Closes Additional Funding Round

Demonstrates Investor Confidence as Company Consolidates Leadership Position

October 4, 2007

Verimatrix, setting the standard in content security technologies that enhance the value of pay-TV networks, announced today that is has raised an additional $5 million of capital to underpin a rapid growth in customer engagements and support the company’s penetration into hybrid, cable and mobile applications. The additional backing comes at the same time the company has again been tapped as the global market leader in content security. TelecomView’s recently released report affirms the company’s global number one position in Opportunities in TelcoTV: Forecast & Market Shares – 2006 to 2012.

“We are proud of our global number one position and continue to execute our strategy that is fully supported by our investors,” said Tom Munro, CEO of Verimatrix.  “Our vision for protecting the “three screen” world of pay-TV will help enable new and exciting revenue streams for enhanced entertainment.”

“Verimatrix continues as a star performer in our portfolio, with a record volume of new orders booked in the previous quarter,” said Ted Alexander, managing partner of Mission Ventures. “Our investor group is very pleased with the company’s growth and market success. We are proud of the independent recognition of Verimatrix achievements.”

Verimatrix currently secures more than 80 global pay-TV deployments, including eight tier one telecommunications providers, and its Video Content Authority System (VCAS™) has consistently rated high in independent audits, with zero security exposures.  Earlier this year, the company surpassed 2 million set-top box licenses sold, and recently hit the 3 million mark.

To help customers anticipate and respond to an evolving world of pay-TV opportunities, Verimatrix has continued to expand its roadmap for multi-network solutions and diversified client support.  This year, the company launched its next-generation VCAS for IPTV geared towards the IPTV wholesale/retail market; introduced VCAS for Cable IPTV with a novel CMTS Bypass solution; and demonstrated its mobile solution as a unified content security and subscriber authentication approach for multi-network and multi-screen service offerings. 

Also this year, the company was selected as the winner of several industry awards for best content security solution based on innovation, direct customer benefits, proven impact through deployments and overall contributions to drive IPTV services to market.  Some highlights include the InfoVision Award, China Outstanding IPTV Solution Award and IPTV World Series award.

The VCAS software-based content security solutions eliminates the vulnerabilities related to smartcard-based architectures through the leverage of mature, proven two-way Internet security protocols, a Public Key Infrastructure (PKI) public/private key pair system and X.509 digital certificates. VCAS can be combined with the unique VideoMark™ user-specific forensic watermarking technology for the most comprehensive layered content security solution in the pay-TV industry.

About Verimatrix
Verimatrix sets the standard for software-based content security and revenue enhancement technologies in pay-TV networks, with a global customer base of telecommunications providers.  The Verimatrix Video Content Authority System (VCAS™) offers a suite of next-generation technologies that has been independently audited and ranked as the global leader in IPTV content protection.  VCAS was designed for two-way and hybrid networks to protect content and enhance revenue streams, while combating digital piracy wherever it occurs within the distribution chain.  The company’s content security experts maintain close relationships with the major studios and broadcasters to help address the challenges facing pay-TV networks of today, and those of tomorrow.  Verimatrix customers benefit with most favorable access to premium content, enabling the richest, most versatile viewing experience for their digital video subscribers.  For more information on why VCAS is the most widely deployed IPTV content security system with tier one operators, please visit www.verimatrix.com

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