24/7 Real Media Raises Up to $7 Million in Equity Funding; Investment by International Venture Capitalist Further Solidifies Company's Future.Business & High Tech Editors 24/7 Real Media, (Nasdaq: TFSM), a leader in interactive marketing, today announced that it has secured an investment of at least $5 million in equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. from Sunra Capital Holdings Limited, an investment vehicle advised by Merchants Group International, a San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden based investment firm. Sunra has an option to increase its investment by an additional $2 million. "We are elated e·lat·ed adj. Exultantly proud and joyful. e·lat  ed·ly adv.e·lat to have found Sunra as a financial partner for 24/7 Real Media," said David J David J. Haskins (b. April 24, 1957, in Northampton, England) is a British alternative rock musician. He was the bassist for the seminal gothic rock band Bauhaus. Life and work . Moore, Chairman and Chief Executive Officer of 24/7 Real Media. "As we continue to move toward break-even operating results, it has become clear that we are effectively executing on our turnaround strategy. This significant investment from a media-savvy, international investor is a tremendous validation of our strategy and provides the cushion we needed to be able to assure our investors, employees and customers that 24/7 Real Media will continue to be a leader in the online advertising industry for the foreseeable future." "24/7 Real Media's senior management team has done a commendable com·mend tr.v. com·mend·ed, com·mend·ing, com·mends 1. To represent as worthy, qualified, or desirable; recommend. 2. To express approval of; praise. See Synonyms at praise. 3. job at weathering the past two years," said Joseph W. Waechter, Managing Director of Sunra. "With the interactive advertising market beginning to recover, and after extensive financial, strategic, and technical due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , we feel that 24/7 Real Media represents a tremendous investment opportunity for us. Sunra eagerly looks forward to being a long-term financial partner for 24/7 Real Media." 24/7 Real Media issued to Sunra $1.6 million of Series A Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , convertible into common stock of the Company at $0.20535 per share. Additionally, the Company issued $3.4 million of Series A-1 Nonvoting Convertible Preferred Stock, which will automatically be converted into an equivalent amount of Series A Convertible Preferred Stock upon approval of the stockholders of the Company at a stockholders' meeting to be called in the third quarter, or redeemable at the option of the holder if stockholder approval for conversion is not obtained. The Company also issued to Sunra a warrant to acquire up to 780,000 shares of common stock that is immediately exercisable, a warrant to purchase up to 1,656,000 shares of common stock that becomes exercisable only upon conversion of the Series A-1 Stock into Series A Stock, and a warrant to purchase up to 1,000,000 shares of common stock that becomes exercisable only if the Series A-1 preferred is not converted. All warrants are exercisable for five years at an exercise price of approximately $0.205 per share. The Company is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to file a resale registration statement to cover the shares of Common Stock underlying the Series A Convertible Preferred Stock and warrants held by Sunra. Sunra's option to acquire an additional $2 million of Series A Convertible Preferred Stock is also subject to stockholder approval and may be exercised until five days prior to the stockholders' meeting. In connection with the investment, Mr. Waechter was named to 24/7 Real Media's Board of Directors. About 24/7 Real Media, Inc. 24/7 Real Media provides marketing and technology solutions to online marketers and publishers to maximize customer relationships and revenue. Our products and services include: Internet ad serving technology, online media representation, integrated marketing solutions comprised of network and site specific advertising, online promotions and search engine optimization Designing a Web site so that search engines easily find the pages and index them. The goal is to have your page be in the top 10 results of a search. Optimization includes the choice of words used in the text paragraphs and the placement of those words on the page, both visible and hidden . For more information, please visit our Web site: www.247realmedia.com. Caution concerning forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : This news release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to changes in economic, business, competitive and/or regulatory factors. More detailed information about those factors is set forth in the most recent quarterly report and other filings with the Securities and Exchange Commission made by the companies named herein. In addition, the following factors, among others, could cause actual results to differ materially from those described herein: the potential for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of relationships with employees or customers, the costs related to doing business in the interactive advertising industry, the risk that the conversion of the Series A-1 Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. will not be approved by the Company's stockholders, and any competitive and/or regulatory factors affecting the businesses of 24/7 Real Media. The Company is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. --30--bw/ny* csm
CONTACT: 24/7 Real Media, New York
Mark Naples, 917/514-2456
mark.naples@247realmedia.com
KEYWORD: NEW YORK
INDUSTRY KEYWORD: ADVERTISING/MARKETING E-COMMERCE INTERNET
SOFTWARE
SOURCE: 24/7 Real Media
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