Backchannelmedia

Business Wire

(NewTeeVee Live) ON Networks™, Inc., a new media company delivering original, on-demand shows originated exclusively in high-definition, today announced that it has secured $12 million in Series B financing. Accel Partners of Palo Alto, California led the funding round with participation from ON Networks Series A investors, Austin Ventures and AT&T. The capital will be used to fund company expansion, including the development of its virtual studio technology platform, new shows, and strategic business relationships with the world's top content distribution networks and platforms. ON Networks $4 million Series A round was completed in November 2006.

In addition to the financing, ON Networks announced that Peter Wagner, general partner of Accel Partners, was appointed to the ON Networks board of directors. Mr. Wagner joins current ON Networks board members -- Chris Pacitti, general partner of Austin Ventures; Allan Grafman, president of All Media Ventures and an operating partner of Mercury Capital Partners; and Kip McClanahan, ON Networks CEO.

"The television market is undergoing tremendous change and disruption as video content moves beyond traditional networks and distribution platforms to embrace new media models and channels," said Peter Wagner of Accel Partners. "The top-notch management team at ON Networks is already successfully navigating this new frontier and is poised to capitalize on new models evolving around advertising and distribution of professional video content."

Covering a wide range of topics and lifestyles, shows from ON Networks are all produced in high-definition by professional producers from around the world who leverage the company's ProSourcer™ Virtual Studio to streamline the management, creation and distribution of content. Today, ON delivers more than 400 episodes of 25 original shows, including Play Value, The 5-Minute Drill, BackPack Picnic, Budget Health Nut, Cocktails on the Fly, Golf Tips, and Stump the Chef.

"ON Networks is changing the way digital media is produced, monetized and delivered to viewers," said Kip McClanahan, co-founder and CEO of ON Networks. "We're focused on building the best team possible and that certainly includes the support of the industry's premiere investors and strategic partners. We're thrilled to add Accel to the team."

For more information about ON Networks, visit www.onnetworks.com.

About Accel Partners

Accel was established in 1983 with offices in Palo Alto and London, as well as in China via the IDG-Accel partnership. Accel also has a partnership that started in 2000 with Kohlberg, Kravis, & Roberts (KKR) that created the Accel-KKR fund for technology management buyouts. With over $4 billion under management, Accel has helped world-class internet and technology entrepreneurs build over 300 successful companies, many of which have become category-defining enterprises. Example Accel investments in the media space include: Brightcove, Facebook, and Realnetworks, among others. www.accel.com

About Austin Ventures

Austin Ventures, with $3 billion dollars under management across nine funds, has been providing startup and growth capital to emerging companies for over twenty years. We partner with exceptionally talented entrepreneurs and operating executives to build valuable businesses in a variety of technology and service industries. We invest nationally but maintain a particular focus on Texas, where we are the region's most active investor. Our team of investment professionals works with companies at every stage of the funding lifecycle, from initial seed investments, through startup and growth capital, to management-led buyouts and recapitalizations. Austin Ventures brings a long-term investment perspective, broad experience in building high-growth companies, and access to an unparalleled network of entrepreneurs and executives. Visit austinventures.com for more information.

About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at www.att.com.

About ON Networks, Inc.

ON Networks is changing the way traditional TV programs are created, distributed, consumed and monetized. It's a new media company delivering original, high-definition shows on-demand across multiple digital platforms, including the Internet, digital cable, IPTV, and various mobile and gaming devices. Offering lifestyle programs covering a variety of topics, ON's weekly shows satisfy the growing demand for relevant, smart and entertaining programming that is available when, where and how viewers want to watch it. ON Networks is a privately-held company backed by Accel Partners, Austin Ventures and AT&T. See tomorrow's television programming today at www.onenetworks.com.

ON Networks and ProSourcer are trademarks of ON Networks, Inc. All other names may be trademarks or registered trademarks of their respective owners.