Anystream Raises $11 Million Funding Round; Growth Round to Expand Market Share, Fund New Product Development.

-- Company Names New Board Members

STERLING, Va., Jan. 2 /PRNewswire/ -- Anystream, the leading provider of software that automates media encoding and transcoding of streaming, broadcast and production formats, today announced an $11 million third-round of funding led by Falcon Private Equity L.P. and existing investor SCP Private Equity Partners. The investment brings Anystream's total venture capital funding to over $28 million. Anystream will use the funds to grow market share for its Agility(R) professional media software product line and to support new product initiatives.

"Anystream is a proven technology visionary. It invented the enterprise- class encoding software category, and its Agility product line has since become the de facto standard in high-end production environments," said Gregga Baxter, managing principal, Falcon Private Equity and head of private equity, Gulf International Bank. "This is an exceptional investment opportunity as Anystream applications now in development have even greater potential for redefining how media is used in the workplace," he said.

"Anystream's depth of talent and expertise has enabled it to weather volatile market conditions since its launch in April of 2000," said Wayne Weisman, SCP partner and Anystream chairman of the board. "This is a resilient and dynamic company whose software products are accepted as the best by the world's most demanding media companies. By demonstrating consistent revenue and market share growth in this environment, we are convinced that Anystream has only begun to tap its market potential," he said.

"Anystream's products were developed to simplify the way professionals create and distribute audio, video and other rich media for digital networks and devices," said Geoff Allen, Anystream president and CEO. "We remain devoted to developing software to simplify this process, and look forward to extending Agility's proven workflow automation and distributed computing benefits to a much wider range of users."

Concurrent with the new funding, Anystream also announced several additions to its board of directors including Gregga Baxter and Kevin Bennis, a telecommunications industry veteran and former CEO of Sprint Canada (Call- Net) and President of Frontier Communications. "Anystream's success in penetrating vertical markets -- like telecommunications, with clients like BT, Cable & Wireless, KDDI and others -- shows the versatility of the Agility product line. I look forward to serving on the Anystream board as the company executes on its next phase of development," Bennis said.

Anystream's Agility software architecture provides a single, fully automated software solution for acquiring, archiving, webcasting, managing and repurposing media assets in broadcast, postproduction and Internet workflows. The scalable and modular Agility product line features entry-level configurations, a client migration path for adding features and processing capabilities, and a software development kit for extending Agility command and control to other mission-critical software platforms and applications. Agility runs on off-the-shelf servers, eliminating the need for companies to purchase proprietary hardware systems.

Anystream's Agility software is deployed for many of the world's best- known broadcast and content production applications including BBC Technologies, Bertelsmann, BSkyB, BT Broadcast Services, CNET, CNN, Fox News, MTVi, RAI Italy, RTL, Warner Brothers, weather.com, Germany's ZDF and many more. Anystream also is deployed for corporations such as GE, FedEx and Raytheon; top universities including Harvard, Dartmouth and University of Nebraska; and within the Army, Department of Defense and the Smithsonian.

About Anystream

Anystream, Inc. (http://www.anystream.com/) is the leading provider of software that automates media encoding and transcoding of streaming, broadcast and production formats. Its Agility software products enable companies to substantially increase the volume and types of media that can be produced at dramatically lower cost. The Agility product family is based on a scalable platform that easily integrates across business applications, serving diverse markets from media professionals to broadcasters, corporations, education and government institutions, and service providers. Anystream, Inc. is funded by SCP Private Equity Partners, Falcon Private Equity L.P., the Intel 64 Fund and Citigroup Investments, Inc. Anystream, Inc. is based in Sterling, VA.

CONTACT: Darian Germain of Anystream, Inc., +1-703-948-3063, or dgermain@anystream.com

Web site: http://www.anystream.com/