TinselVision Secures Series B Financing

TinselVision Secures Series B Financing

WASHINGTON and DUBAI, United Arab Emirates, Nov. 19 /PRNewswire/ -- TinselVision (http://www.tinselvision.com/), a Tinsel Cinema broadband Internet, video-on-demand (VoD) service delivering premium Indian television and Bollywood film content to more than 40 million persons of Indian origin living overseas, today announced it has secured terms for an inside, up-round for Series B financing, led by its current largest investor, Innovative Entertainment Limited (IEL).

The new capital comes just days before TinselVision announces four additional online distribution deals with leading Indian film, television and music production houses. Over the past few months, TinselVision secured content licensing deals with STAR TV, Zee TV, Yash Raj Films and Zoom TV.

Company sources confirm the amount of the Series B round exceeds the Series A funding level of US$3MM, and establishes the company's pre-launch, post-money valuation at nearly US$20MM.

Explaining the reasons for accelerated funding, a spokesman for the company's finance group notes "management has soundly navigated the early capital and content risk phases of the business and, has a growing appetite to extend these early gains." Its finance team sought and readily obtained acceleration capital in advance of previously planned growth capital. The venture will deploy its deep access to liquidity to implement its tested tactics for infrastructure, distribution and services launch.

"We committed to achieve value creation and content momentum exceeding marketplace norms when we closed Series A funding just five months ago," offers Chase Weir, Chairman and CEO of TinselVision. "We have now exceeded the milestones of our original capital commitments and, our investors decided to re-affirm these accomplishments with a near doubling in share value and more than doubling their invested capital."

Board director and President of IEL, Shahid Khan, states, "With expert management, TinselVision has secured a cost structure unmatched among its peers in the industry, with lower than standard commerce transaction costs, better than 60% reductions for content delivery costs over market rate norms, and commercially viable licensing and advertisement concession terms," adding, "In addition to these cost-of-revenues successes, the company's track record with content acquisition is unrivaled in quality and diversity among other providers in this niche -- all before the business has even launched services. In case we needed more incentive to further capitalize this venture, the firm's leadership has done all of this under budget with excess cash on hand, demonstrating their strong stewardship of invested funds."

The US-India based venture is already in discussions for Series C funding and, intends to disclose terms secured for collapsed film releases, cricket licensing, exclusive IPTV technology rights, and advanced business intelligence offerings to its advertisers and licensors in the coming weeks, in addition to unveiling designs for its v3.0 online services and social networking features. TinselVision will use Series B funding to extend its investments in grassroots community and online viral marketing, in addition to key hires in senior management, content acquisition, advertising sales and extensible distribution.

ABOUT TINSELVISION

TinselVision(TM), a trademarked service of Tinsel Cinema, LLC, is a Washington, DC and Mumbai, India-based premium VoD provider scheduled to launch its niche service in late November 2007. TinselVision will deliver Bollywood and South Asian movies, television series and sporting events via IPTV to PCs, laptops, TVs and mobile devices to South Asian households in the US, UK, Canada, and globally. The service seeks to provide nearly 40 million viewers with choice, affordability, control and convenience through on-demand access to one of the largest libraries of South Asian content while offering a new and lucrative distribution channel to content producers and owners. For more information visit http://www.tinselvision.com/.

ABOUT INNOVATIVE ENTERTAINMENT LIMITED

Innovative Entertainment Limited (IEL) is a wholly-owned subsidiary of Innovate Energy Group (IEG), with combined annual revenues of approximately US$2.5 billion. The principals and co-founders of IEL, Muhammad Rafique and Shahid Khan, also the Chairman and CEO of IEG respectively and members of the board of directors of Tinsel Cinema, have expanded their global markets vision and proven financial skills in distribution, electronics, infrastructure and alternative energy to broadcast media and entertainment. IEL has been established initially to provide the early-stage financing and later-stage growth capital TinselVision(TM) requires to become the market leader in broadband entertainment services to South Asian communities around the world. These initial investments in TinselVision's global on-demand and social networking service models will also build the Veodi(TM) and ChannelMine(TM) brands.

First Call Analyst:
FCMN Contact:

Source: TinselVision

CONTACT: Investors, Chase Weir, Chairman & CEO of TinselVision for
Tinsel Cinema, chase [at] tinselvision.com; or Media, Adam Dubitsky,
+1-202-652-2250, adam [at] tinselvision.com; or Shahid Khan, President for
Innovative Entertainment Limited, shahid [at] innovative-energy.com

Web site:

http://www.tinselcinema.com/
http://www.tinselvision.com/

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