VideoEgg Unveils Brand Response Advertising Model

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VideoEgg Inc., the leading video advertising network for online
communities, is launching the AdFrames(SM) Brand Response Network, an
innovative program that provides advertisers a more measurable way to
reach highly engaged consumers using video and rich media.

To date, advertisers buy online inventory based on impression,
spending a set amount per thousand delivered views, what´s known as
CPM. While CPM provides reach and potential, it lacks accountability
and forces a high level of risk onto advertisers to determine ad
effectiveness. AdFrames allows advertisers to negotiate a price for
engagement, a more valuable indicator of consumer interest, and an
approach that will help reframe the focus of the industry from
quantity to quality.

"Advertisers need to move beyond the metrics of eyeballs and
evolve from ´how many´ to ´how good,´" said Troy Young, CMO of
VideoEgg, the company that pioneered the video ad overlay. "AdFrames
leverages our keen understanding of how to drive engagement with
innovative ad units and takes risk away from the advertiser. It offers
advertisers a predictable approach to distributing highly targeted
video and rich media content."

Microsoft will be one of the first companies to use AdFrames and
to benefit from VideoEgg´s accountable brand advertising model. The
company plans to use AdFrames to distribute video content promoting
Microsoft Office. The product is a natural fit for the marketing
program, offering a systematic solution to push out Microsoft´s
long-form, entertaining brand content featuring comedian Amy Sedaris.
The ads will run across the Eggnetwork which includes hundreds of
social sites and applications.

"VideoEgg´s AdFrames approach allows us to deliver high-impact
video messaging to an engaged audience, helping us to reach our media
objectives, effectively and efficiently," said Jamie Conner, Media
Manager with Microsoft.

The AdFrames solution distributes video or rich media through an
innovative, expandable ad unit that can be dynamically formatted to
fit any size on a page, widget or online game. This flexibility will
enable publishers to better integrate the ad message into their
environment. Importantly, AdFrames will align incentives across the
delivery network by compensating publishers on user engagement.
Engagement doesn´t begin until a user rolls over the ad, and the
AdFrame Invitation has expanded into an overlay. AdFrames includes a
countdown during the roll-over to ensure the user is not engaging with
the ad inadvertently.

"Our goal is to bring rich media advertising into the meebo
platform and maintain flexibility -- the flexibility to deliver a
variety of ad experiences," said Martin Green, Vice President,
Business for meebo, the Web´s live interaction platform with a monthly
reach of 24 million users. "VideoEgg will help us create ad
experiences that work for our users, and we get paid when consumers
engage. It makes a lot of sense for everyone."

Additionally, because VideoEgg manages the entire process,
advertisers avoid paying further money to third-party rich media
companies that traditionally format the advertising assets -- a
transaction that can account for 10-20 percent or more of the
advertiser´s cost.

"We see tremendous opportunity to use pages, games and widgets to
deliver video experiences inside of a brand-focused performance-based
ad solution," said Matt Sanchez, CEO of VideoEgg. "Video is the
richest, most effective way to deliver brand messages."

AdFrames is the latest innovation from the Eggnetwork(SM), which
provides rich media cross leading social networking environments,
video sites and gaming applications. Publishers get great brands and
dynamic ad sizes, while the consumer has the opportunity, through
VideoEgg´s respectful, invitation-based approach, to interact with
powerful brand messages. VideoEgg will also continue to provide the
classic Eggnetwork model, which is based on targeted CPM-based media
buys.

For a demo of the product, go to www.videoegg.com/adframes.

About VideoEgg, Inc.

VideoEgg, the leading video ad network for online communities, has
developed an extensive audience network that connects brands and
content owners with people through an invitation-based rich media
approach to advertising. An advertising innovator, VideoEgg was the
first to commercialize interactive advertising overlays onto video, an
approach that is being widely adopted by the industry. The Eggnetwork
is composed of more than 200 top video and gaming sites, social
networks and applications, bringing outstanding consumer reach and
engagement to its advertising partners. Founded in 2005 and based in
San Francisco, with offices in the United Kingdom and New York City,
the company is privately held and backed by August Capital, First
Round Capital, Maveron, WPP and Focus Ventures. For more information
on VideoEgg, please visit www.videoegg.com

AdFrames, VideoEgg and Eggnetwork are trademarks, servicemarks or
registered trademarks in the United States and other countries. All
other brands, names, or trademarks mentioned in this document are the
property of their respective owners.

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