Watercooler Inc. Announces $5.5 Million Series B Funding Led by Strategic Corporate Investor Betfair

Watercooler Inc. Announces $5.5 Million Series B Funding Led by Strategic
Corporate Investor Betfair
Existing Investor Canaan Partners Also Participates

SAN FRANCISCO and MOUNTAIN VIEW, Calif., Oct. 26 /PRNewswire/ -- Betfair, the
largest online betting community in the world, and Watercooler Inc., a leading
developer of fan communities and social games with more than 26 million users,
today announced the closing of a $5.5 million Series B funding round. Betfair
led the round which included investment from existing investor Canaan
Partners. Betfair's US president, Gerard Cunningham, joins the Watercooler
board.

"Our investment is further proof that Betfair believes the fantasy sports
market is a tremendous opportunity in the US and around the world," said
Gerard Cunningham, president of Betfair US. "Watercooler's strong team and its
proven ability to execute an innovative approach to social networking and
sports, is extremely compelling as we continue to build Betfair's global
portfolio of sports and social media offerings," said Cunningham.

Watercooler will use the round to fund further development of fantasy sports
and social games on Facebook and other platforms. The company recently
launched FanSection Fantasy Football 2009, a commissioner-style fantasy
football game available on Facebook. Earlier this year Watercooler's 2009
Bracket Challenge application was the largest college basketball tournament
game on Facebook with over 1.7 million active users, easily surpassing all
other bracket games combined. The company's Series A financing was led by
Canaan Partners of Menlo Park, CA.

"At Watercooler, we've already achieved fantastic momentum in the social
gaming space on Facebook, and we look forward to continuing along that path
with the new investment from Betfair and Canaan," said Kevin Chou, CEO of
Watercooler. "Betfair's innovative approach to sports and gaming, along with
its strong international presence, made the company a perfect fit as we
continue to build innovative social games."

Since launching in 2000, Betfair has grown into the world's largest, legal
online gaming company with over 2.5 million registered customers in 140
countries. The company, which pioneered exchanged betting, generated almost
$500 million in revenue in its 2009 fiscal year. Betfair now holds licenses
in the U.S., U.K., Australia, Italy, Malta, Germany and Austria. In January
2009, Betfair acquired TVG, which included TVG.com, the largest, legal
wagering business in the USA, and Television Games Network, the premier
horseracing television channel, widely available across the country.

"There is a clear opportunity for Watercooler's fan communities and social
games," said Maha Ibrahim, General Partner at Canaan Partners. "Since our
initial investment, the company has rapidly expanded its worldwide users on
top social platforms. We're excited to help Watercooler achieve even greater
success and believe Betfair's industry experience and regulatory capabilities
will help drive the expansion of Watercooler's product offerings."

About Betfair
Betfair is the world's biggest online betting community and pioneered the
first successful betting exchange in 2000. Driven by cutting-edge technology,
Betfair enables customers to choose their own odds and bet even after the
event has started. The company now processes more than 6 million transactions
a day from its 2.5 million registered customers around the world. In addition
to sports betting, Betfair offers a portfolio of innovative products including
casino, exchange games and poker.

Betfair has twice been named the UK's 'Company of the Year' by the
Confederation of British Industry and remains one of the only betting
companies to win a Queen's Award for Enterprise, being recognized for
Innovation in 2003 and most recently International Trade in 2008.

Betfair currently employs over 1,600 people, principally in Europe, USA and
Australia. The company is a licensed betting operator in the UK, and holds
licenses in the United States, Australia, Germany, Austria, Italy and Malta.
Betfair acquired TVG for $50m in January 2009 and has announced plans to build
its global social media development team in San Francisco, CA.

About Watercooler, Inc.
Watercooler is a leading developer of social games on Facebook and other
social networks. The company was founded to connect millions of sports and TV
fans through its extensive network of fan communities, and has extended that
social product expertise to create innovative and engaging social games.
Headquartered in Mountain View, California, Watercooler has raised Series A
and Series B rounds of financing from Canaan Partners of Menlo Park,
California and Betfair of London, UK. For more information, visit
www.watercooler-inc.com.

About Canaan Partners
Canaan Partners invests in visionary entrepreneurs and provides them the
networks, insights and operational guidance required to build high-performance
technology and healthcare companies. Founded in 1987, the firm has raised
eight funds and completed more than 77 acquisitions and 52 IPOs. With $3
billion under management and a worldwide footprint, the firm's technology team
is committed to catalyzing the growth of innovative companies in the digital
media, communications & mobility, enterprise and clean tech sectors. Among
its successes are DoubleClick, the leading online advertising solution;
Match.com, the most popular online dating site in the world; CommerceOne, the
company that pioneered B2B ecommerce; SuccessFactors, the global leader in
on-demand performance and talent management solutions; WebLoyalty, a leading
provider of online marketing and rewards services; and VOIP equipment supplier
Acme Packet, which was one of the top ten performing tech IPOs of 2006. Other
Canaan technology investments include Active Networks, Associated Content,
BharatMatrimony, Blurb, iYogi, Lending Club, N-trig, ON24, Prime Sense, Tremor
Media and Zoosk. Canaan has offices in California, Connecticut, India and
Israel. For more information visit www.canaan.com.

SOURCE Betfair

Mindy Whittington of Red Consultancy, +1-415-618-8811, or
mindy.whittington@redconsultancy.com, for Betfair