Core Capital Partners Leads This Extension of Series B Financing; Existing Investors Complete the Round 

Inlet Technologies, a leading provider of advanced encoding solutions for digital media, announced today that it has extended its Series B round of venture financing, and secured an additional $4.4 million. Core Capital Partners, a $370 million private equity fund, is the largest investor in this round of financing. Inlet’s initial Series B investors, including Technology Venture Partners (TVP), Telecommunications Development Fund (TDF) and North Carolina-based Capitol Broadcasting Company (CBC) have committed additional funds to complete the round.

Inlet will use this capital to extend its reach in the digital media market. Inlet’s patent-pending encoding solutions enable content providers to perform top-quality video compression, so they can quickly and efficiently meet consumer demand for high quality media, distributed over a wide range of devices. Inlet will continue to expand its platform, product line and sales and marketing efforts in order to address the exciting growth opportunities this market represents.

“Inlet has already established itself as a leader in advanced encoding technology,” stated Pascal Luck, managing director of Core Capital Partners, “and is poised to make a significant contribution to the marketplace. We are very excited about the growth potential of the video on demand and “linear video” markets, and the opportunity to help Inlet deliver high-value solutions to these markets.” Luck will represent Core on Inlet’s Board of Directors.

“We are pleased with Inlet’s substantial progress to date,” stated Bryson Hollimon, Managing General Partner of Technology Ventures Partners. “The investment by Core Capital represents further recognition of the excellent opportunity Inlet has to build value in the digital media marketplace. We welcome Core as a solid addition to Inlet's investor group."

The funding follows on the heels of strong momentum for Inlet. The company’s flagship product, Fathom™, has met solid market acceptance as it provides the workflow tools and efficiencies necessary to meet media production deadlines, while delivering industry-leading media quality.  In addition, Inlet recently released the second generation of its quality control tool, Semaphore™, which immediately secured key industry validation as one of Broadcast Engineering’s NAB 2005 Pick Hits.  Inlet has an impressive portfolio of both customers and partners, including Microsoft, Hewlett Packard, Texas Instruments, HDNet, Netflix, Akimbo, Modern VideoFilm, CinemaNow, Microsoft Studios and others.

“This investment is a validation of Inlet’s strategy and market positioning,” explained Neal Page, Inlet CEO. “The digital media arena is truly exhilarating, both in terms of revenue and technological opportunities. The addition of Core Capital to our group of impressive financial partners will significantly enhance our ability to address this fast-growing market.”