Corbis Reports 2003 Growth at 5X the Industry Rate.

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Business Editors

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NEW YORK--(BUSINESS WIRE)--Jan. 16, 2004

CEO Steve Davis presides over "pivotal moment" in company's

evolution; owner Bill Gates sees 20% growth as market

validation for founding vision

Corbis announced today that its revenues grew 20 percent in 2003, more than five times the consensus growth rate for the advertising/publishing sector. The announcement was made at the company's first-ever annual meeting, at which Corbis CEO Steve Davis, along with owner and founder Bill Gates, addressed an audience of more than 250 media and publishing executives, reporters, and industry analysts.

Davis estimated the company's 2003 revenues at approximately $140 million, making it the largest single brand name in the global image-licensing industry. He attributes Corbis' strong performance to ongoing changes in the ways businesses are using imagery, which play to the company's founding vision.

"Professional communicators are demanding more sophisticated solutions for their visual storytelling needs," said Davis, "in terms of both imagery and the ecosystem of rights and permissions associated with their use. While a traditional photography agency is not positioned to meet these growing needs, Corbis was conceived and built with exactly these needs in mind."

According to Davis, the demand for imagery is at an all-time high--and growing--as end-users find more and more applications for it in their daily lives, not only in traditional media like newspapers, magazines, and television, but also in emerging technologies like cell phones and plasma screens. This leads marketers, publishers, and other creative professionals to rely increasingly on visuals to tell stories, build brands, sell products and entertain audiences.

"As more and more imagery floods the marketplace to meet that demand, our clients need to cut through the clutter in more arresting ways," Davis explained. "That often means clever, new combinations of content--from still photography to footage, motion picture clips to the Mona Lisa, celebrity portraiture to hard-hitting photojournalism--all with varying degrees of exclusivity. These complexities require greater emphasis on service, in which Corbis enjoys a three-to-one advantage according to global market research. And Corbis is the only global provider to combine a world-class collection of images, with a suite of highly consultative services twenty-four hours a day, seven days a week."

Corbis' clients evidently find value in its approach--analysts estimate industry growth at a median of three and a half percent, so Corbis' disproportionate growth indicates that the company is taking market share from its competitors. This is likely the result of its ability to meet the increasingly complex needs of image users.

Advertisers, for example, increasingly find a competitive advantage in associating their brands with particular celebrities--Tiger Woods, for instance. But getting the necessary rights clearances can be so costly and time-consuming that creative professionals will often settle for a less powerful idea than pursue the elusive clearances. Corbis provides both the imagery and the clearances, saving the advertiser valuable time and money.

"On its own, the old vending machine model--insert coin, remove image--cannot deal with these growing complexities," Davis explained. "There has to be an additive layer of expertise and service. Today's professional communicators need more than a vendor. They need a partner."

Despite the company's growing emphasis on consultative service--and given that Corbis is owned by Microsoft Chairman Bill Gates--it is no surprise that technology plays an important role in Corbis' business. "From the beginning we foresaw a marketplace where technology would enable unprecedented access to the world's most powerful images," said Gates. "Of course, unfettered access opens a Pandora's box of challenges with regard to intellectual property rights, so Corbis pioneered the use of technology to manage and control rights. Without this control, clients could never be sure that the rights they've licensed will be protected."

According to Gates, a business model that combines technology and rights in such a unique way requires a uniquely qualified leader to oversee it. Gates found the right balance of attributes in Davis. "Some people are calling him my 'other Steve,'" Gates laughed, "but his business acumen, technological know-how, and strong background in intellectual property law make him singularly qualified to run Corbis--a company that exists at the convergence of art, commerce, technology and law. The amazing growth Corbis is enjoying is a tribute to his leadership and focus."

"Our business model--the broadest, deepest combination of world-class imagery and expert services under a single, global brand--was a long-term play from the beginning," said Davis. "To grow twenty percent in a flat economy is an unmistakable validation that our investment and perseverance are beginning to pay off. It is a pivotal moment for Corbis."

"Through many years of research and development, acquisition and integration," Davis continued, "we were able to maintain our focus thanks to Bill's unwavering commitment and support. Without such a patient investor, we would have been forced to yield to short-term pressures long ago, resulting in a less compelling offering for 21st-century clients."

About Corbis

Corbis offers complete visual solutions that enable publishers, advertising and design agencies, filmmakers, and other creative professionals to tell their stories with impact that goes beyond words. Our contemporary and archival photography, fine art, illustrations and footage are licensed and seen around the world every day--differentiating brands, selling products, supporting news stories, and entertaining audiences. Client advisory services are available around the clock--including rights management and clearances, custom production and assignment photography, and research.

Corbis' full suite of services can be found at www.corbis.com. Corbis is headquartered in Seattle, with offices in New York, Los Angeles, Chicago, London, Paris, Dusseldorf, Vienna, Hong Kong, Kuala Lumpur, and Tokyo.

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