London: September 26th, 2007: Seraphim Capital, the £30m Enterprise Capital Fund, has led a £2million round of investment into leading embedded advertising specialist, MirriAd Ltd.

Seraphim Capital Logo

Seraphim is co-investing alongside existing investors that include London Seed Capital, South East Growth Fund and Oxford Technology Management. The transaction is Seraphim’s fourth investment since the fund’s launch one year ago.

The £2 million investment led by Seraphim, will enable MirriAd to effectively promote its pioneering embedded advertising technology and product placement service to the advertising industry.

MirriAd’s unique and patented technology offers marketers a powerful promotional tool by digitally inserting brand images into video content after filming has been completed, making them look like they were always there.

Now for the first time products, logos, posters or bill boards can be seamlessly placed into video streams post-production, across cinema, TV, DVD, mobile and online platforms delivering optimal presence for the brand whilst remaining in context with the content.

Cinema releases and TV shows can also use MirriAd to regionalise their advertising content, whilst film and music video back catalogues can be monetised by MirriAd retrospectively inserting new branded products and adverts into the content.

MirriAd enables advertisers to more effectively target specific audiences by changing where brands and products are placed in a video clip, according to who and where in the world it is being watched.

The media industry is suffering from falling advertising revenues, due to increasing audience fragmentation. MirriAd’s new services will deliver better value for money through targeted advertising on any platform that reaches the desired audience and guaranteeing visibility as long as the content is watched without damaging the viewing experience.

In recognition of the predicament facing broadcasters, the EU recently passed a directive legalising product placement in Europe for the first time. This deregulation is expected to lead to triple digit growth rates in countries such as the UK, Italy and Spain in the years ahead.

MirriAd’s technology and services are ideally positioned to help content and brand owners take advantage of this innovative advertising opportunity whilst opening up new revenue streams for content owners.

MirriAd is already working with some of the leading studios, broadcasters and advertising agencies in both Europe and America.

As part of the Seraphim investment, Denny Wilkinson will join MirriAd’s Board. Having previously successfully built up and sold a US company that placed virtual advertisements into live broadcast sporting events, Denny has unrivalled experience of the virtual advertising
industry.

People

Mark Boggett (Investment Director) from Seraphim Capital led the deal.

Mark Popkiewicz (CEO) and Stephen Bullock (Chairman) represented MirriAd Ltd.

Mark Popkiewicz, CEO of MirriAd, says: “Content owners are always hungry for new revenue streams and brand owners need innovative ways to market their products in an increasingly online world. With Seraphim’s support, MirriAd will continue to deliver ground- breaking digital campaigns that will demonstrate the power and value of in-video, embedded advertising to brands, content owners and media buyers.

Mark Boggett, Investment Director at Seraphim Capital says: “MirriAd stands at the forefront of a new form of advertising that looks set to become a global phenomenon. Supporting the world’s leading pioneer of embedded advertising and virtual product placement represents a terrific opportunity for Seraphim.”

Advisers

Equity – MBM Commercial (Legal) – Sandy Finlayson
Management –
Company Solicitors – Gordons Solicitors – James Gordon

For further information please contact:

Seraphim Capital
Mark Boggett
e: mark@seraphimcapital.co.uk
tel: 020 7089 2318
www.seraphimcapital.co.uk

MirriAd

Katharine Simon or Ian Hood, Babel PR
E.     MirriAd@babelpr.com
T.     +44 (0) 20 7434 5550
W.    www.babelpr.com

About Seraphim Capital

Seraphim is a consortium of Business Angel networks and corporate venturers across the UK which have joined forces to raise £10m of private investment, with £20m of UK Government backing, to manage one of the UK’s new Enterprise Capital Funds (ECF). The ECF programme is a new multi-million pound scheme set up by the UK Government to boost investment in fast growing small and medium-sized businesses in the UK. Seraphim was the first ECF to launch in September 2006.

Seraphim’s partners include Business Angel networks from across the country including London Business Angels, Pi Capital, Advantage Business Angels, Entrust and Archangels. The corporate venturers involved are General Capital Venture Finance, The Summit Group and GLE. An exciting dimension to the Fund consortium is the addition of funding from Focus Enterprises a US investment bank and New Vantage Group one of the leading US Angel Groups. Seraphim has completed 4 deals valued at £5m in the year since launch.

Seraphim won the Most Exciting New Entrant to The Market Award at the 2006 British Business Angel Association’s Awards. www.seraphimcapital.com

About MirriAd Limited

MirriAd’s patented technology and integrated service digitally embeds advertising into videos, which range from user generated content to studio quality productions. The result is advertisers have the opportunity to link their brands in context with the video content and viewers can enjoy the content with their experience enhanced or uninterrupted as brands and images are placed into video streams to look as though they were always there.

MirriAd is the first and only company that has the ability to embed advertising, words, images and interactive hyperlinks cost-effectively, in small and large volume digital content and to a high quality on any platform using its proprietary ZoneSense™, technology.

For more information: www.mirriad.com