Overlay.TV Video Platform Enables True Contextual Advertising

Unique Technology Attracts Leading Investors
OTTAWA--(Business Wire)--Overlay.TV today announced it has completed a $4.6 million Series
A financing round and will be launching its Internet video-advertising
platform on February 14, 2008. The funding, from Celtic House Venture
Partners, EdgeStone Capital Partners and Tech Capital Partners, will
provide Overlay.TV with the resources required to successfully deploy
its innovative solution.

Overlay.TV: Watch it. Click it. Get it.(TM)

The Overlay.TV platform allows viewers to interact with online
video, and enables content owners and distributors to monetize their
video assets. As video streams from its original location, such as
leading video sharing sites, viewers are able to opt-in to receive
"overlays" which provide contextual information about the content
being viewed. The overlay technology allows any image in a video to be
'hyper-enabled' and allows a viewer to click on the image, right in
the video, and take any number of desired actions that are directly
associated with the context of the image being viewed.

The overlays can be embedded in external web pages, online shops,
blogs and social network profiles. The simplicity and elegance of the
Overlay.TV technology means that anyone posting video content will
have a tool to add contextual information directly onto the video
content - no pre-roll, no post-roll, no banners, and no changes to the
video at all.

Authors, content owners and e-commerce providers are able to offer
advertisers a measurable return on investment for their product
placements, without increasing the costs associated with video
production.

"The huge uptake of online video, both professional and
user-generated, has created phenomenal opportunities for advertisers
and content owners seeking to monetize their assets and reach.
However, the fundamental challenge of delivering the right message at
the right time still exists," said Rob Lane, President/CEO of
Overlay.TV. "Some interesting attempts to infer video context have
started to emerge, but none have proven to be very effective.
Empowering users to determine context explicitly and giving them the
tools to create their own interactions and ads are what Overlay.TV
delivers. We have enabled product placement for the masses and have
provided viewers with a simple way to buy what they see in online
video."

"People are struggling to monetize video on the internet and to
date, none of the solutions have been overly compelling," said Andrew
Waitman, Managing Partner, Celtic House Venture Partners. "Overlay.TV
has taken a complex issue and developed a solution that enables anyone
to add interactivity and advertising to online video."

For a preview of the upcoming launch on February 14, 2008, please
visit www.overlay.tv.

About Overlay.TV

Overlay.TV is an interactive media company that provides a
video-advertising platform enabling users to lay contextual
information directly onto video content. Overlay.TV is a private
company headquartered in Ottawa, Canada. For more information, please
visit www.overlay.tv.

About Celtic House Venture Partners

Celtic House Venture Partners is a leading venture capital firm
dedicated to helping entrepreneurs build high velocity technology
companies from the ground up. Since 1994, Celtic House has funded over
60 companies and committed over US$500 million -- more than 70% to
concept-stage start-ups. By working closely with company management,
Celtic House has generated billions in stockholder value and proceeds
through 17 successful exits to date, 13 of which were seed-funded by
Celtic House. With a history of backing winning teams, including
Abatis Systems, Avesta Technologies, Bookham, Extreme Packet Devices,
FastLane, NorthChurch, Orchestream, OctigaBay, PixStream, Memsic and
Sandvine, Celtic House continues to produce superior venture returns
in its target regions in Canada and Europe. Today Celtic House is
working with more than 20 active portfolio companies from its offices
in Ottawa, Toronto and London, UK.

About EdgeStone Capital Partners

EdgeStone Capital Partners is one of Canada's leading private
equity firms and has managed in excess of $2.5 billion of private
capital on behalf of institutional and high net worth clients.
EdgeStone provides capital, strategic direction and business and
financial advice to help promising early-stage and mid-market
companies achieve their full potential. EdgeStone leverages the
resources of its broad business network and ensures an alignment of
interests to achieve superior returns for all stakeholders. For more
information, visit www.edgestone.com.

About Tech Capital Partners Inc.

Based in Waterloo, Ontario, Tech Capital Partners manages $95
million in venture capital. Tech Capital provides seed financing,
hands-on leadership, market strategy and operational guidance to
early-stage technology companies that have the potential to compete at
a global level. Since its inception in 2001, Tech Capital has invested
in some of Canada's most innovative high-tech companies, including:
AideRSS (www.aiderss.com), Covarity (www.covarity.com), LiveHive
Systems (www.livehivesystems.com), OverlayTV (www.overlay.tv),
Sandvine (TSX:SVC; AIM:SAND) (www.sandvine.com), Sidense
(www.sidense.com), Sirific Wireless (www.sirific.com), Software
Innovation (www.softinn.com) and VideoLocus (acquired by LSI Logic).
An active advocate of innovation and entrepreneurialism, Tech Capital
maintains a strong presence in Waterloo's thriving technology
community. For more information, please visit
http://www.techcapital.com.

Overlay.TV
Hessie Jones, 613-761-6152, ext. 226
Director, Marketing
hessie.jones@overlay.tv

Copyright Business Wire 2008