Cinebase Closes $9 Million Financing Round; Cinebase to Focus on Expanding Its Next-generation Media Management Solutions.

LOS ANGELES--(BUSINESS WIRE)--Jan. 5, 1999--Cinebase Software, Inc. announced today it has secured a second round of venture funding totaling $9 million.

Constellation Ventures, LP (an affiliate of Bear Stearns Asset Management) and Psilos Group Managers, LLC led the private placement. Wasserstein Adelson and East West Capital, members of the current Cinebase Software, Inc. investor group also participated in this round of financing. Cinebase will use this financing to accelerate the growth of its media management product portfolio including the development and marketing of its next generation software, Cinebase2.

Cinebase Software, Inc. is the leading provider of media management solutions for production, post-production, broadcast, cable and government. Cinebase products are used to store, find and manage media assets for production and archives.

Frost & Sullivan, the market research and consulting company, named Cinebase the number one provider in 1998 of media management software in the emerging billion-dollar media management marketplace.

"We believe that Cinebase has positioned itself well to take advantage of the convergence of media, communications and technology," said Clifford H. Friedman, Managing Member of Constellation Ventures. "It is precisely the kind of company that fits Constellation Ventures' mission. As digital networks and digital media are created and widely deployed over the next ten years, the complexity of managing these systems and assets will increase exponentially. These expanding digital systems will demand new and different skill sets and tools to support the evolving workflow. Additionally, this further cements Constellation Ventures commitment to invest a significant amount of capital resources in Los Angeles' Digital Coast."

Friedman, Senior Managing Director at Bear Stearns & Co. Inc., was formerly Senior Vice President for Universal Studios New Media Group, and Vice President of Strategic Development at NBC. Constellation Ventures targets early to mid-stage media, communications and technology companies that provide enabling services and technologies that will directly interface with customers through new and emerging digital distribution systems.

"This investment is based on our belief that Cinebase Software's technology is designed to become the centerpiece of the digital media workflow process of the future," said Albert S. Waxman Ph.D., founder and Senior Managing Director of Psilos. "We have an enormous amount of confidence in the ability of David Brunel and his management team to realize this vision." Psilos, a private equity fund with a growing commitment to digital media investments, has worked in partnership with Constellation Ventures on several investments in Los Angeles and New York.

Wasserstein Adelson Ventures was formed in 1996 to leverage the extensive investment experience and strong relationship base of its principals, Wasserstein Perella and East-West Capital.

Transamerica Technology Finance, a division of Transamerica Business Credit, continues to provide Cinebase with a $4 million credit facility. "We are thrilled to be able to play a role in the continued success of Cinebase," said Ian Schnider Senior Vice President of Transamerica Technology Finance. "The company is well positioned to take advantage of a growing and important market." Transamerica Technology Finance, a unit of Transamerica Corporation, provides working capital, term, bridge and senior term loans to venture and intermediate stage technology and life sciences companies nationwide.

"Cinebase empowers our customers to reduce production costs, decrease time to market, improve product quality and create new revenue streams," said David Brunel, Chief Executive Officer of Cinebase. "We are at the center of a global media revolution fueled by digital television and Internet commerce. With the impressive support of our investment partners, Cinebase will continue to lead the industry with solutions that will enable our customers to expand their capabilities in this new digital age."

Brunel also noted that Cinebase is partnering with key industry leaders, including Avid, Oracle, Virage, ISLIP, and Silicon Graphics, to deliver complete media management solutions.

Cinebase Software, Inc. is headquartered in Los Angeles, with offices in New York and Silicon Valley. Further information is available by calling 310/479-3700, or via the Internet at www.cinebase.com.