Akimbo Closes Series C Financing, Adds Cisco and AT&T as Investors; Networking and Telecommunications Giants Join Leading Venture Capital Firms Funding Akimbo's Internet Video-on-Demand Service for Television.

SAN MATEO, Calif. -- Akimbo(TM) Systems, the first Internet video-on-demand service for television, today announced that it has closed a Series C investment round of $15.5 million. New investors Cisco Systems Inc. (NASDAQ:CSCO), the worldwide leader in networking for the Internet, AT&T Inc. (NYSE:T), one of the world's largest telecommunications holding companies, and venture capital firm, Blueprint Ventures, join existing Akimbo investors Draper Fisher Jurvetson, Kleiner Perkins Caufield & Byers, Sprout Group and Zone Ventures.

The financing confirms Akimbo's emergence as the premiere service for communications technology and consumer electronics companies that want to offer Internet video-on-demand as part of home entertainment packages for their customers. The award-winning Akimbo Service brings consumers a one-of-a-kind collection of more than 10,000 videos and movies provided by a global network of approximately 200 mainstream and specialty content partners. Akimbo's video collection spans 100 categories, including genres like independent film, foreign language, anime, sports, children's entertainment, travelogues, lifestyle shows, music programming and video blogs.

"These new investors position us perfectly for the future," said Joshua Goldman, CEO of Akimbo. "Cisco and AT&T are emerging as two of the most innovative companies in the world in terms of creating new ways for video to reach consumers. Their strategic insight and extensive resources will help bring Akimbo's content and service into millions of homes on a variety of devices. Adding these world-class strategic investors to our top-tier financial investors gives Akimbo an incredible boost for the next phase of our growth."

Akimbo is currently accessible through the Online Spotlight area of Microsoft Media Center Edition 2005 PCs and through the company's own Akimbo Player set-top box. This fall Akimbo and Thomson Corp. will launch the RCA Akimbo Player, a new Internet video-on-demand set-top box for television. The RCA Akimbo Player features the complete Akimbo Service with new release movies from Movielink. Akimbo will also soon be available to subscribers of AT&T's Homezone(TM) service, scheduled to launch later this summer. AT&T Homezone subscribers will use their integrated set-top boxes and AT&T Yahoo! High Speed Internet connection to access thousands of video programs and movies, in addition to television programming over satellite from AT&T/DISH Network.

A monthly subscription to the Akimbo Service for Media Center or for the Akimbo Player is $9.99 a month. Sign up for a free trial through the Online Spotlight area of Microsoft Media Center, or find out more about what's on at www.akimbo.com.

About Akimbo

With 12 patent applications featuring more than 150 patent claims, Akimbo is the first company to deliver digital-quality video-on-demand to any television via a broadband-Internet connection. Named to the OnHollywood 100 by AlwaysOn and "Best of What's New" by Popular Science, Akimbo has also accepted 2005 Digital World Innovations and CES Best of Innovations 2005 awards for its easy-to-use and affordable Internet video-on-demand service. As an aggregator of brand-name and specialty video content, Akimbo provides one of the world's largest collections of on-demand programming to companies including AT&T, Cisco Systems, Inc., Microsoft Corp., and Thomson Corp. Akimbo has offices in San Mateo, Calif. and is a privately held company funded by AT&T, Blueprint Ventures, Cisco Systems, Inc., Draper Fisher Jurvetson, Kleiner Perkins Caufield & Byers, Sprout Group and Zone Ventures. For more information, visit www.akimbo.com.