Capitalizing on the Resurgence of Online Display Media, Eric Schmidt and Jim Pallotta Invest in Spongecell

NEW YORK, NY, Jun 06 (MARKET WIRE) --
Spongecell, the interactive display advertising company that is leading
the creative resurgence of online display, has completed a new round of
financing led by Eric Schmidt, Google's Executive Chairman, and Jim
Pallotta, Chairman and Managing Director of Raptor Group. Also
participating in the round are Brian Rooney, Board Member of the
Pittsburgh Steelers, and Silverhaze Partners. The amount of the round was
not disclosed.

Incorporated in 2006 by a team of Carnegie Mellon computer science
graduates, Spongecell previously raised capital in 2007 from Halo Venture
Partners, The Pilot Group and SilverHaze Partners.

"Spongecell's growth has been extraordinary, gaining more than 200 major
brands in 2010 alone. Founding CEO Ben Kartzman and his team are at the
forefront of API-enabled technology that is pushing the boundaries of the
next generation of display advertising," says Raptor's Mr. Pallotta. "We
look forward to a bright future for Spongecell."

In recent independent tests conducted by IPG's Media Lab, API-enabled
ads, including Spongecell's, outperformed competitors and static control
ads. Engagement rates improved anywhere from 2.4% to 11.9%. Interactions
within the test ads were anywhere from twice to eight times as frequent
in comparison to the control.

"Since the introduction of Spongecell's dynamic advertising technology in
late 2008, we have been very fortunate to have been able to grow the
business rapidly from profits rather than additional capital investment"
says Mr. Kartzman. "The new funds will be used to accelerate sales growth
and further bolster the product development team. Clearly, we are very
excited to have the advice and counsel of Eric Schmidt, Jim Pallotta, and
Brian Rooney."

See examples of Spongecell work here: http://gallery.spongecell.com/.

About Spongecell (https://Spongecell.com/) is leading the creative
resurgence of online display advertising by combining speed, innovation
and advanced engineering to transform standard banner ads into
rich-media-like interactive ads that can run in any ad placement on the
web. The company works with creative and media agencies to serve
thousands of engaging campaigns across billions of impressions for global
brand advertisers every year. Spongecell is an independent company
founded in 2006 with headquarters in New York and offices throughout the
United States and Europe.

George H. Simpson
203.521.0352
george@georgesimpson.com

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