Vividon Investors Increase Second Round Funding by 33 Percent

Vividon (www.vividon.com), an Internet infrastructure company that seeks to improve the economics of delivering streaming media, announced that it has increased its recently secured second round of funding by one-third, for a total of $20 million. According to the company, the additional $5 million will allow Vividon to aggressively pursue its goal to become the premier provider of cost-effective streaming delivery systems. All current investors including Venrock Associates, Atlas Venture, Carlyle Venture Partners and private investor James Dow participated in the additional funding.

Vividon was founded in 1998 as Exotec. The company's technology is based on concepts originally developed at MI, where the company's founders first met.

"Vividon has shown great progress in developing the products and organization necessary to fulfill the expanding needs of the streaming media delivery market," said Michael Feinstein, senior principal with Atlas Venture. "We believe that Vividon is well positioned with favorable market timing, representing an excellent incremental investment opportunity for Atlas Venture."

Vividon states that its Vividon Streaming Delivery System improves the delivery of dynamic content by eliminating network bottlenecks while providing a high-quality, cost-effective streaming experience to thousands of concurrent users. The company states that the Vividon streamer has shown sustainable throughput capabilities well above OC12 speeds to support over 700 megabits per second of concurrent streams in a single low-profile device which offers several configurations optimized for deployment in ISP edge, CDN and IP core networks.

"We are pleased to have this additional vote of confidence from our investors who just provided $15 million of funding in late 2000," said David Ellenberger, CEO of Vividon. "While we do not need this additional cash in 2001, it does provide comfort knowing that for the next 12 months we can focus on executing our business plan, rather than raising additional capital."