BlueLithium Announces $11.5 Million Series A Financing Led by WaldenVC and 3i.

SAN JOSE, Calif. -- Company Chooses Global Industry-Leading Financiers, Adds Key Board Members and Stages International Expansion of its Performance Based Advertising Network

BlueLithium, Inc., the Internet's largest performance-based advertising network, today announced that it has closed a Series A financing totaling approximately $11.5 million. The investment was led by WaldenVC and 3i. The funds will be used to expand advertising sales operations globally, most immediately with a UK presence, and to further deploy BlueLithium's optimization technology.

This financing caps a remarkable growth spurt for the company. Founded in 2004, BlueLithium is already profitable and operating at a multi-million dollar run rate. Its network includes over 1,000 sites and delivers several billion impressions per month. In December 2004, it reached over 100 million unique users worldwide.

BlueLithium has displaced better-funded competitors in large part because of its superior targeting and optimization technology, which provides real-time optimization and tuning of advertising campaigns and delivers comprehensive intelligence about conversion, response, and targeting -- all without encroaching upon end users' privacy.

As part of this financing, Rich LeFurgy, a venture partner at WaldenVC who co-founded the Internet Advertising Bureau (IAB) and served as its chair for five years, will join BlueLithium's board of directors. A long-time veteran of both Madison Avenue and the Internet advertising world, he decided to invest his own money in BlueLithium because of CEO Gurbaksh Chahal's history of leadership and execution.

Referring to ClickAgents, a company that Chahal founded and sold to ValueClick in 2000, LeFurgy observed, "Gurbaksh is a proven leader. He is proving himself again at BlueLithium. Through the development and acquisition of industry-leading technology, he has assembled a blue chip list of advertisers and publishers while holding the line against ruinous industry practices such as pop-ups, pop-unders, and spyware. As interactive media continues to take dollars from traditional advertising budgets, BlueLithium is poised for even more rapid growth."

"With many financing opportunities on the table, we chose to take the funding that best aligned with our overall business objectives, from financiers who share the vision of creating industry leaders," said Gurbaksh Chahal, founder and CEO of BlueLithium. "We wanted investors who added value beyond their dollars. WaldenVC and 3i recognize the value of our network and unique optimization technology and they will open doors to the worlds' leading brands. With a world-class team, leading advertisers and a robust network, BlueLithium is poised to become the industry bellwether in performance based advertising."

Steve Eskenazi, a general partner at WaldenVC, will become a BlueLithium director. Eskenazi said, "Since we focus on digital media investments, we have seen many companies in the online advertising and marketing space. With its AdRevolver optimization technology and its long list of satisfied customers, BlueLithium immediately stood out to us as a company that has the opportunity to build long-term, sustainable advantages over its competition."

David Silverman, partner at 3i who will also join BlueLithium's board of directors, said, "BlueLithium's market-leading technology, rapidly expanding base of large advertisers, and exceptional results made BlueLithium a very attractive addition to our portfolio. We take pride in the scale of our international presence on three continents and our ability to add value well beyond the capital we invest."

About BlueLithium, Inc.

For advertisers focused on response and results, BlueLithium is the performance-based advertising network that maximizes ROI through its proprietary ad serving technology. The company's advertising network is driven by the industry's most advanced targeting and optimization technology, offers a variety of advertising options for online marketers, and helps publishers maximize the value of online properties. For more information, see http://www.bluelithium.com

About WaldenVC

WaldenVC is a venture capital firm that focuses on investments in digital media companies. Additional focus areas include software as a service and information services. With over $400 million under management, WaldenVC invests across all stages of growth, from startups to public corporations. Leveraging its operating experience, corporate investors, investment banking expertise and worldwide network, WaldenVC has consistently generated above-average returns over its thirty-year history. Additional information can be found at http://www.waldenVC.com

About 3i

3i is a leading international venture capital and private equity firm that was founded in 1945 to invest in buyouts, growth capital and venture capital in order to create market-leading companies. Since its inception, 3i has invested over $31 billion worldwide and has a total staff of 700 employees operating out of 30 offices in 14 countries. In the U.S., 3i invests in both early and late stage technology companies in the software, communications, semiconductor and healthcare sectors. 3i partners leverage over 150 years of investing and operating experience and a global network to create value for their portfolio and investment partners. With a proven track record and knowledge of venture capital investing, 3i provides hands on support and guidance in building and scaling successful businesses. For more information, see http://www.3ius.com