Quadrangle

A Global Private Investment Firm Leveraging Experience, Knowledge & Relationships

Video Network, Inc. Closes $66 Million Financing Round,Announces Plans to Change Company Name to Pathfire

11/14/2000

Key Strategic Investors Include Enron Broadband Services, Reuters and PanAmSat

New Pathfire Name Reflects Company’s Pioneering Applications for Distribution and Management of Digital Media Across Numerous Industries


ATLANTA, GEORGIA, and NEW YORK, NEW YORK, November 14, 2000
Video Networks Inc. (VNI), a leading business-to-business provider of digitized video and related e-commerce applications for the media industry, announced today that it has closed on a $66 million round of private financing led by Quadrangle Group LLC, a private equity firm specializing in the media and communications industries.

Quadrangle's $20 million investment was the cornerstone of a round of financing that also included several key strategic and financial investors, such as Enron Broadband Services, a subsidiary of Enron Corp. (NYSE: ENE); Halpern Denny & Company; PanAmSat (NASDAQ: SPOT); Reuters; Riggs Capital Partners; and Sand Hill Capital. VNI said that it expects to announce business partnerships with several of its new strategic investors in the near future.

This round of financing included participation by existing high-quality VNI investors, such as Alliance Technology Ventures, AT&T Ventures, Bank of America Capital Investors, Institutional Venture Partners (IVP), Kinetic Ventures, Monarch Capital Partners, Noro-Moseley Partners, UPS Strategic Enterprise Fund and U.S. Venture Partners. Robertson Stephens functioned as VNI's agent for this significant round of financing.

Michael J. Eckert, president and CEO of VNI, said, "We are pleased and gratified that such a large number of blue-chip companies and firms have joined our existing investors in supporting VNI's vision and direction, and we are quite enthusiastic about the significant strategic value they bring. Our ability to secure a lead investor of Quadrangle's stature represents a strong vote of confidence in our employees, and of course in our groundbreaking technology. Through its deep relationships and high regard within the media and communication industries, Quadrangle will be a valuable partner as we continue to build this company."

Joshua L. Steiner, managing principal of Quadrangle, said, "We believe that VNI offers its customers superior service and significant cost-savings. The fact that leading media companies like NBC and Charter Communications rely on VNI for mission-critical solutions gives us great confidence in the company's prospects."

Steven Rattner, managing principal of Quadrangle, said, "Quadrangle's strategy is to focus on high-quality investments in the media and communications industries, and to invest in companies where we can make a difference. We are very excited about this company and its management team, and we look forward to helping VNI increase its product offerings and expand its customer base."

Quadrangle will receive one seat on the VNI Board of Directors and has the right to nominate a second board member, subject to the approval of the other shareholders in this round of financing.

VNI is a leading business-to-business provider of digital media content distribution and management services to the broadcasting and cable industries, with emerging operations in the areas of radio, digital cinema, syndication and streaming content on the Internet. VNI provides a distribution platform and software applications for the delivery and management of digitized video content and has developed unique e-commerce solutions that improve the efficiency of related billing and processing transactions. VNI's customers include major broadcast networks, cable companies, advertising agencies and other leading media companies.

Company to Change Name to "Pathfire," Reflecting Its Continuing Evolution
VNI's decision to change its name to Pathfire reflects a new stage of its development and its unique ability to distribute and manage digital media across numerous segments of the media industry.

The name is meant to evoke the speed and efficiency the company's leading-edge software applications and related networking capabilities bring to the management and exchange of digitized media assets in the cable, broadcast, media and entertainment industries. The company will officially adopt the Pathfire name and will launch an extensive rebranding campaign during the first quarter of 2001.

"We wanted a name that evoked the things we do as a company as well as the unique and dynamic way in which we do them," Eckert said. "Pathfire speaks to our ability to distribute content and also to our ability to surround that content with applications and services that make it more valuable."

Quadrangle Group LLC is an investment firm specializing in the media and communications industries. It was founded in March 2000 by four Managing Directors of Lazard Frères & Co. LLC who have more than 50 years of combined experience in private equity and in media and communications. The firm's advisory board and other investors include many prominent executives of leading media and communications companies.

Media Contact:
Video Networks Inc.
Laurie Sillay Lahr
Director, Marketing Communications
770.619.0801, ext. 1240
lsillaylahr@vninet.com

For VNI:
Robinson Lerer & Montgomery
Lisa Wolford
212.484.7058
lwolford@rlmnet.com

For Quadrangle:
Abernathy MacGregor Group
Adam Miller
212.371.5999
alm@abmac.com


Back To Previous Page