Channel M Receives Investment from Intel Capital

Out-of-Home Video Advertising Market Estimated to Reach $2.25B by 20111

Channel M, a leading out-of-home video advertising company, today announced it has completed Series C financing from Intel Capital. Funding will be used to expand Channel M’s digital content distribution network, as well as expand the sales and marketing infrastructure.

“Retailers and advertisers are continually searching for better ways to connect with and influence consumers while they are shopping and Channel M’s out-of-home network of branded original content satisfies this demand,” said David Teichner, CEO of Channel M. “One of our national retailing clients has seen an average of 79 percent ad recall and brand recognition, leading to a 20 percent sales increase in stores that have adopted a Channel M network. With Intel Capital’s investment in Channel M, we will be able to enhance and expand our networks through digital distribution to help us continue to develop the most effective in-store programming for our retail clients and advertisers.”

“The out-of-home video industry has developed into a unique media category with growth potential,” said Gustavo Aray, senior investment manager, Intel Capital. “Intel Capital’s investment in Channel M will drive ongoing development of its digital distribution network as well as support program content development.”

Channel M is the nation’s largest in-store media company, working with more than 20,000 locations in the United States. Channel M’s national ad supported retail networks reach more than 100 million consumers each month, serving as key vehicles for retail branding as well as third party advertising to highly targeted demographics at more than 7,500 points of purchase around the country. The Company’s clients include national retailers such as Macy’s, Ashley Furniture and Blockbuster. Channel M pioneered out-of-home narrowcasting with its unique mix of custom-developed content and advertising that educates consumers, impacts sales, enhances the store environment and drives incremental revenue for retail partners.

1According to market analysts eMarketer and PQ Media, the out-of-home video industry is expected to grow to $2.25 billion and $3.22 billion, respectively, by 2011. To capitalize on the growth potential of the market, Channel M will use the Intel Capital funding to migrate its distribution network to a digital platform. Through digital distribution of its programming, Channel M will be able to offer advertisers the ability to customize delivery of ad content to localize ads or service campaigns nationwide. Digital delivery will also enhance metrics information for Channel M networks, helping to move the industry towards universal reporting standards.