IMVU Doubles Revenue in One Year to Achieve $25 Million Run Rate

PALO ALTO, CA, Oct 05 (MARKET WIRE) --
IMVU Inc., an avatar-based social network and virtual world where people
meet and interact in 3D, today announced the company has doubled its
revenue in one year to a $25 million run rate and achieved profitability.
IMVU grew its revenue primarily by increasing the sale of virtual
currency to its members, who use that currency to purchase virtual goods
ranging from clothing for their avatars to furniture for their rooms.
IMVU's catalog of virtual goods is the largest in the world, with more
than 3 million items created by IMVU members.

"We're proud to have grown revenue so quickly at a time when consumers
have been cutting their personal spending," said Cary Rosenzweig, CEO of
IMVU. "We attribute our success to five years of hard work by our
employees and to the creativity of our members. We're investing most of
our profits to hire more employees so that we can further improve the
customer experience."

Since launching in 2004, IMVU has grown into one of the largest virtual
worlds, with more than 40 million registered users and 6 million unique
visitors per month. The service offers a simple yet immersive 3D
environment where users can customize their avatars and rooms, and meet
and interact with other people from around the world.

"IMVU has succeeded because our business model gives users what they want
-- fresh and relevant content created by our community, for our
community," said Lee Clancy, Vice President of Product Management and
General Manager of Direct Revenue at IMVU. "More than 35,000 3D
developers have sold virtual goods in IMVU's catalog in the last 30 days.
These user-developers add more than 4,000 new items to the catalog every
day, which enables the millions of users who visit our site each month to
enjoy a highly personalized experience."

About IMVU

IMVU Inc. (www.imvu.com) is an avatar-based social network and virtual
world where people meet and interact in 3D. IMVU has reached 40 million
registered users, 6 million unique visitors and a $25 million revenue run
rate. IMVU has the world's largest virtual goods catalog of more than 3
million items, almost all of which are created by its own users. Founded
in 2004, IMVU is backed by venture investors Best Buy Capital, Menlo
Ventures, Allegis Capital and Bridgescale Partners and is located in Palo
Alto, CA.

Editor's Note:

Below are links to an IMVU demo video and various images that can be used
for publication.

-- IMVU video: http://www.youtube.com/watch?v=wipM6jsj0ow

-- IMVU homepage: http://static.imvu.com/imvufiles/IMVU_homepage.jpg

-- IMVU boating scene:
http://static.imvu.com/imvufiles/IMVU_boating_couple.jpg

-- IMVU picnic scene:
http://static.imvu.com/imvufiles/IMVU_picnic_park.jpg

-- IMVU dress up: http://static.imvu.com/imvufiles/IMVU_dressup_mode.jpg

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