bmp media Backs Freshmilk

Berlin, Germany-based bmp media investors has acquired a 16.5% stake in Freshmilk NetTV GmbH, a webTV provider, as part of a capital increase. VC Fonds Kreativwirtschaft Berlin, which is managed by IBB Beteiligungsgesellschaft, invested in the company for the same amount. Financial details were undisclosed.

PRESS RELEASE

bmp media investors AG (ISIN DE0003304200) has acquired a 16.5% stake in
Freshmilk NetTV GmbH, a webTV provider, as part of a capital increase. VC
Fonds Kreativwirtschaft Berlin, which is managed by IBB
Beteiligungsgesellschaft, invested in the company in the same amount.

Freshmilk NetTV will continue to develop the webTV offers “Freshmilk.TV”
and “Berlinfashion.TV” – parts of which have already been operated by
Freshmilk Creative Media GmbH since 2000 – on a long-term basis. These have
already won several national and international awards in the past.

The “Freshmilk.TV” broadcasting brand stands for innovative, urban and
authentic television for the web generation and is to be given a stronger
focus on format.
Since being launched, the “BerlinFashion.TV” broadcasting brand has evolved
into one of the most respected and extensive special interest offers for
fashion and design from all over Europe. After its re-branding as
“FashionDaily.TV”, the broadcasting brand is now set to became even more
international.

Both broadcasting brands currently produce the majority of their content
themselves; in future, this is to be supplemented with contributions from
other production teams and with partnerships providing for greater
coverage. For instance, there are plans to broadcast in several hybridTV
and publishing offers and on the dailyme mobile platform. Freshmilk NetTV
thus provides both multichannel and multiplatform distribution and offers
advertisers an interesting mix with significantly increased coverage by the
end of 2012.

According to estimates by the Online-Vermarkterkreis (Circle of Online
Marketers, OVK) in the Bundesverband Digitaler Wirtschaft (Federal
Association of the Digital Economy, BVDW), online video advertising in
Germany will grow by around 115% to EUR 184 million this year, the highest
growth rate among the large-scale online advertising formats. Through smart
phones, tablets and now also smart TV, online video advertising is becoming
more and more interesting for advertising customers. Market surveys confirm
a substantial increase in demand in the coming years, with a continuing
supply shortfall for high-quality content.

Freshmilk NetTV defines itself as an advertising-financed, web-based TV
production network. Because it has full ownership of rights to the
broadcasting content, it offers extensive opportunities for presenting
advertising content in a way that is tailored to the customer.
The initiators Kai Wermer and Klaas Imgenberg see significant growth
potential for high-quality format brands in the lifestyle segment and
already have specific ideas for expanding the channel, for instance with
internally produced series formats.

Kai Wermer, Managing Director of Freshmilk NetTV GmbH, comments: “The way
that we watch TV is changing, but online video advertising is still running
on a format that dates from the 1960s: the commercial. This will change
with our innovative view-time based and fully interactive advertising model
for webTV.”

Jens Spyrka, member of the Executive Board of bmp media investors,
comments: “Together with the founding partners, we intend to develop
Freshmilk NetTV into a high-coverage urban lifestyle offer for online
videos. We see excellent opportunities for monetisation here. Freshmilk Net
TV is an extremely interesting addition to our portfolio, which already
includes two companies from the area of online videos – dailyme.tv and
instream media – as well as Castaclip GmbH which is held by BFB
Frühphasenfonds GmbH.”

Clemens Kabel, authorised signatory at IBB-Beteiligungsgesellschaft, adds:
“The founders of Freshmilk NetTV convinced us with their many years of
experience and their proven successes. Germany’s creative capital Berlin is
the ideal location for this project and successful development of the
company. The environment provides original content and helps in the
international placement of the newly developed format brands.”

About bmp media investors:
bmp media investors AG (ISIN DE0003304200) invests in growth companies in
the field of media and marketing services in Germany and Poland. It focuses
on companies in the seed, start-up and expansion phases.
To date, bmp media investors has performed well over 30 equity investments
in the media and marketing services segment. Its successful exits include
eProfessional, Gamigo, YOC, K2, Bankier, Nokaut and nugg.ad. Besides Self
Loading Content GmbH the current portfolio features amongst others brand
eins Medien AG and Xamine GmbH.