Constellation Ventures Announces Opening of Los Angeles and Tokyo Offices; Dennis Miller and Ross Miyamoto Will Manage New Locations.

Business Editors

LOS ANGELES & TOKYO--(BUSINESS WIRE)--Dec. 18, 2000

Constellation Ventures, a Bear Stearns venture capital team that invests in companies that enable the distribution, management and control of digital media over emerging digital networks, announced that it has opened operations in Los Angeles, CA and Tokyo, Japan.

The company also announced the appointment of two partners who will manage the new locations. Dennis Miller has been named General Partner and will manage West Coast operations. Mr. Miller's primary focus will be on creating partnerships with companies that are seeking capital for emerging digital broadband infrastructure services and promising digital networks.

Mr. Miller has spent more than 15 years in high-level executive positions at leading media companies overseeing programming, strategic planning, marketing and creative content, most recently as executive vice president of Lions Gate Entertainment. Previously, Mr. Miller was executive vice president of Sony Pictures Entertainment, president of Turner Pictures and executive vice president of Turner Network Television.

Constellation also announced the appointment of Ross Miyamoto as the General Partner to head the Tokyo office. Mr. Miyamoto will lead investments in world-class Japanese venture companies consistent with Constellation's investment focus. In addition, Mr. Miyamoto will also provide support for Constellation's US-based portfolio companies to form its strategy for Japan. Another key role for Mr. Miyamoto includes promoting strategic relationships between Constellation's portfolio companies and its Japanese strategic limited partners, which include Dai Nippon Printing, NTT Data, Sony, Toyota, and Trans Cosmos. Establishing partnerships and co-investments with these major global companies will ensure Constellation's portfolio companies a faster and surer road to success.

Mr. Miyamoto joins Constellation Ventures from Sony Corporation, where he established its strategic venture investment department, and managed and led investments in venture companies in both U.S. and Japan. Mr. Miyamoto has also served as the head of the strategy staff for the CEO, and has held numerous key managerial positions at Sony's corporate headquarters as well as its product planning and international marketing divisions.

Commenting on the addition of Mr. Miller and Mr. Miyamoto, Clifford Friedman, senior managing partner at Constellation Ventures, said, "The expansion of our West Coast and Tokyo operations continues our commitment of seeking out emerging and promising companies on a national and global scale. These efforts will flourish with the addition of these two extremely talented and knowledgeable professionals."

Constellation recently announced that it has closed its second fund, Constellation Ventures II, with $350 million in committed capital. The areas of enabling services and technologies that will receive funding from Constellation Ventures II include:

-- Peer-to-peer networks

-- Business-to-business exchanges which can be used both as a marketplace and a
distribution system

-- Distributed caching systems

-- Intranet and Internet connect services

-- Edge services

-- Load balancing and traffic management optimization

-- Bandwidth management

-- Content distribution software

-- Content distribution services

-- Publishing technologies

The characteristics of the programming service-based companies that will receive funding include:

-- Taking advantage of new digital distribution systems -

Successful management teams

-- Multiple revenue stream opportunities (i.e., syndication,

advertising, sponsorship, subscription, e-commerce, etc.)

-- Global applications

-- Ability to leverage Constellation Ventures' strategic partners

-- Business with anticipated profitability within 24 months

-- Revenue has commenced with paying customers

About Constellation Ventures

Founded in 1998 by Cliff Friedman, Constellation Ventures, an affiliate of Bear Stearns Asset Management, manages $450 million in venture capital through offices in New York, Los Angeles and Tokyo. The fund invests between $5 and $15 million in early to mid-stage companies that enable the distribution, management and control of information over emerging digital networks. Constellation Ventures provides its portfolio companies strategic value-added by leveraging its Limited Partners that include Bear Stearns, Sony, Viacom, Young & Rubicam, Times Mirror, Dai Nippon Printing, NTT Data, Acxiom, Toyota and Singapore Technologies.