LockStream Secures $15M In Third Round Funding Time Warner's Digital Media Investment Fund, Artisan Entertainment's iArtisan LLC Participate

Round Led By Encore Venture Partners and Audax Ventures



Oct 18, 2000, 01:00 ET from LockStream Corporation

    NEW YORK, Oct. 18 /PRNewswire/ -- LockStream(TM) Corporation, the only
 complete solution for secure digital distribution of audio, video and text on
 wireless, laptop and desktop devices, today announced that it has received
 third round funding of $15 million from a group of investors led by Encore
 Venture Partners and Audax Ventures, including Time Warner's Digital Media
 Investment Fund, Artisan Entertainment's iArtisan LLC investment vehicle,and
 ING Barings.  The investment by iArtisan represents the debut commitment of
 the investment vehicle, which is managed by Artisan Digital Media, the Artisan
 business unit recently formed to oversee the company's new media initiatives.
 Encore VP and Audax Ventures will each receive a seat on LockStream's Board of
 Directors.
     LockStream (http://www.lockstream.com) is the first Application Service
 Provider (ASP) to offer multiple levels of security for books, music, video,
 software, artwork or corporate communications on virtually any Internet access
 device.  LockStream's patent-pending technology ensures that copyrights are
 protected and material is safeguarded against piracy.  LockStream's
 distribution solution encodes purchased content on-the-fly for each customer,
 storing all protected media in an unintelligible, encrypted state, making
 every distributed copy as unique as a fingerprint. Content secured using
 LockStream's technology is unrecognizable to Napster-like software.  Any
 unauthorized copy of the protected material is degraded beyond a usable state
 through the use of patent-pending algorithms.
     LockStream also provides a complete digital rights management (DRM)
 solution and a unique patent-pending Morphing Player(TM), enabling content
 owners to maintain their brand identity across all media playback devices.
     Scott Searle, LockStream's Chairman of the Board and Chief Software
 Architect -- who has been involved in the development of some of the world's
 most successful software products including Microsoft Office, Microsoft
 Outlook Express, Metrowerks CodeWarrior, Apple MacOS 7, Microsoft Test and
 Microsoft Project -- says his company set out to fulfill two key objectives:
 "To create the most convenient way of delivering digital media securely; while
 making the program compact enough to work on a variety of wireless devices as
 well as traditional laptop and desktop computers.  Our software solution
 achieves those goals by being extremely small, secure and easy to use."
     LockStream CEO David Goodman -- formerly President of Warner Vision
 Entertainment (a division of Warner Music Group) -- said today the new
 investment showed a commitment to LockStream's unique security-based
 technology: "Distribution of rich media via the Internet represents the
 beginning of a new era in content delivery. The Internet has been just the
 beginning. As media migrates from Internet servers to peer-to-peer networking
 to wireless devices, the content community requires a technology that enables
 multiple outlets of distribution.
     "Closing our financing with such major partners as Time Warner, ING
 Barings and Artisan Entertainment, validates our belief that LockStream is not
 only the best technology solution, but also the best business solution -- a
 flexible and customizable technology, which adapts to the needs of content
 owners in an easy-to-use customer experience."
     Remarked Nicolas van Dyk, President, Artisan Digital Media, "Lockstream
 provides a critical enabling technology in rich media and we are pleased to
 announce them as iArtisan's inaugural investment.  With so many concerns over
 copyright protection for entertainment related web-based product, Lockstream
 does what others in the past have tried and failed to do.  We have every
 confidence that this company will stand the test of time and protect the
 entertainment industry's presence on the Internet now and into the future."
     Commenting on his firm's investment in the Company, Encore's Steve
 DesJardins said: "We seek to invest in companies which possess leading edge
 technology solutions and visionary management teams.  LockStream is such a
 company.  LockStream's digital rights management solution is extremely elegant
 -- the Company's software delivers best of breed security in a package light
 enough to reside on PDA's and wireless phones.  Add to that a management team
 with the industry experience to understand the needs and concerns of content
 owners and consumers alike, and you have a winning proposition."
     "For Audax Ventures, the investment in LockStream makes complete sense,"
 said Jeremy Hogue of Audax Ventures."We are looking at the landscape of
 technology solutions that will facilitate and drive the convergence of media
 and entertainment and the Internet. Security for media assets is critical for
 that convergence to happen.  The other solutions we have analyzed can be
 cracked or easily circumvented.  LockStream, however, provides genuine
 protection for content owners."
     Founded in 1999, LockStream has already announced a series of digital
 distribution alliances with major entertainment industry players including New
 Line Cinema, Golden Books Family Entertainment, Harvey Entertainment, Spitfire
 Records, Artemis Records and GrooveTone Records.
 
     About LockStream(TM) Corporation
     LockStream Corporation, a leading innovator in digital content
 distribution and Digital Rights Management, provides content owners a means of
 delivering secure, fast digital media without fear of piracy or unauthorized
 downloading.  LockStream's patent pending software solution gives intellectual
 property owners multiple levels of proven copy protection, a customizable,
 brand-reinforcing Morphing Player and a state-of-the art Digital Rights
 Management System.  LockStream's revolutionary low operating overhead
 (10 times smaller than competing solutions) enables secure delivery on the
 widest range of platforms including portable wireless devices.  Founded in
 1999, LockStream Corporation has offices in New York, Los Angeles and
 Bellevue, Washington
 
     About Encore Venture Partners
     Encore Venture Partners, L.P. (http://www.encorevp.com) is a venture
 capital fund focused on funding technology start-ups and emerging growth
 companies primarily in the areas of Internet and telephony infrastructure and
 real estate technology and related services.  Encore currently has offices in
 Dallas/Fort Worth, Texas and Los Angeles, California.
 
     About Audax Ventures
     Audax Ventures, (http://www.audaxgroup.com) with offices in Boston, New
 York, San Francisco and Irvine, manages the venture capital investment
 business of Audax Group.  Audax Ventures focuses on early stage and high
 growth privately held businesses and specializes in the information technology
 domains of rich media, enterprise software/ASPs, life sciences and platform
 technologies.  Audax Group is a premier alternative-asset, money management
 and investment firm based in Boston, MA.  Audax Group is currently investing a
 $75 million venture capital fund and a $500 million late stage private equity
 fund, and intends to raise a second venture fund and a mezzanine debt fund.
 Audax Group employs over 50 people including 30 investment professionals.
 
     About Time Warner Digital Media Investment Fund
     Time Warner's Digital Media Investment Fund is part of Time Warner Inc.,
 the world's leading media company.  Time Warner's businesses include cable
 networks, publishing, music, filmed entertainment, cable and digital media.
 
     About iArtisan and Artisan Entertainment
     iArtisan is the investment vehicle managed by Artisan Digital Media, the
 business unit responsible for overseeing all of Artisan Entertainment's new
 media related activities.
     Artisan Entertainment Inc. is a leading independent entertainment company
 that develops, produces and distributes entertainment product in the home
 entertainment, theatrical, pay television, and Internet arenas.  Artisan Home
 Entertainment has over 6,700 titles in its extensive library including a
 diversity of well known titles such as "Terminator," "T2: Judgment Day," "The
 Blair Witch Project," "Dirty Dancing," "It's a Wonderful Life," "On Golden
 Pond," "The Last Emperor," "Basic Instinct," "The Piano" and the "Rambo"
 series.  The company distributes video product directly to over 12,000 retail
 stores in the United States from popular brands such as Discovery, Hallmark
 and its own Family Home Entertainment, which has released titles such as
 "Merlin" and "Alice in Wonderland" as well as titles from The Baby Einstein
 Company.  On the theatrical side, Artisan Pictures is a leading producer and
 distributor of leading independent features with output agreements with
 Showtime Networks for domestic pay television as well as theatrical output
 deals with Alliance Atlantis in Canada, Momentum Pictures in the U.K.,
 Highlight Communications in Germany and Lauren Films in Spain.  Artisan's
 product is sold in international territories through Summit Entertainment.
 The company also has a joint venture with Marvel Enterprises to develop,
 produce and distribute character-based programming across multimedia outlets.
 
     LockStream, the LockStream logo and Morphing Player are trademarks of
 LockStream Corporation.  All other marks are trademarks of their respective
 owners.
 
     Media Information:
     Rob Goldstone or David Wilson
     Oui 2 Public Relations
     212 541 5698
     rob@oui2.com
 
     For information about LockStream's technology:
     Call: 212 905 6107
     Email: AllMedia@LockStream.com
 
 

SOURCE LockStream Corporation
    NEW YORK, Oct. 18 /PRNewswire/ -- LockStream(TM) Corporation, the only
 complete solution for secure digital distribution of audio, video and text on
 wireless, laptop and desktop devices, today announced that it has received
 third round funding of $15 million from a group of investors led by Encore
 Venture Partners and Audax Ventures, including Time Warner's Digital Media
 Investment Fund, Artisan Entertainment's iArtisan LLC investment vehicle,and
 ING Barings.  The investment by iArtisan represents the debut commitment of
 the investment vehicle, which is managed by Artisan Digital Media, the Artisan
 business unit recently formed to oversee the company's new media initiatives.
 Encore VP and Audax Ventures will each receive a seat on LockStream's Board of
 Directors.
     LockStream (http://www.lockstream.com) is the first Application Service
 Provider (ASP) to offer multiple levels of security for books, music, video,
 software, artwork or corporate communications on virtually any Internet access
 device.  LockStream's patent-pending technology ensures that copyrights are
 protected and material is safeguarded against piracy.  LockStream's
 distribution solution encodes purchased content on-the-fly for each customer,
 storing all protected media in an unintelligible, encrypted state, making
 every distributed copy as unique as a fingerprint. Content secured using
 LockStream's technology is unrecognizable to Napster-like software.  Any
 unauthorized copy of the protected material is degraded beyond a usable state
 through the use of patent-pending algorithms.
     LockStream also provides a complete digital rights management (DRM)
 solution and a unique patent-pending Morphing Player(TM), enabling content
 owners to maintain their brand identity across all media playback devices.
     Scott Searle, LockStream's Chairman of the Board and Chief Software
 Architect -- who has been involved in the development of some of the world's
 most successful software products including Microsoft Office, Microsoft
 Outlook Express, Metrowerks CodeWarrior, Apple MacOS 7, Microsoft Test and
 Microsoft Project -- says his company set out to fulfill two key objectives:
 "To create the most convenient way of delivering digital media securely; while
 making the program compact enough to work on a variety of wireless devices as
 well as traditional laptop and desktop computers.  Our software solution
 achieves those goals by being extremely small, secure and easy to use."
     LockStream CEO David Goodman -- formerly President of Warner Vision
 Entertainment (a division of Warner Music Group) -- said today the new
 investment showed a commitment to LockStream's unique security-based
 technology: "Distribution of rich media via the Internet represents the
 beginning of a new era in content delivery. The Internet has been just the
 beginning. As media migrates from Internet servers to peer-to-peer networking
 to wireless devices, the content community requires a technology that enables
 multiple outlets of distribution.
     "Closing our financing with such major partners as Time Warner, ING
 Barings and Artisan Entertainment, validates our belief that LockStream is not
 only the best technology solution, but also the best business solution -- a
 flexible and customizable technology, which adapts to the needs of content
 owners in an easy-to-use customer experience."
     Remarked Nicolas van Dyk, President, Artisan Digital Media, "Lockstream
 provides a critical enabling technology in rich media and we are pleased to
 announce them as iArtisan's inaugural investment.  With so many concerns over
 copyright protection for entertainment related web-based product, Lockstream
 does what others in the past have tried and failed to do.  We have every
 confidence that this company will stand the test of time and protect the
 entertainment industry's presence on the Internet now and into the future."
     Commenting on his firm's investment in the Company, Encore's Steve
 DesJardins said: "We seek to invest in companies which possess leading edge
 technology solutions and visionary management teams.  LockStream is such a
 company.  LockStream's digital rights management solution is extremely elegant
 -- the Company's software delivers best of breed security in a package light
 enough to reside on PDA's and wireless phones.  Add to that a management team
 with the industry experience to understand the needs and concerns of content
 owners and consumers alike, and you have a winning proposition."
     "For Audax Ventures, the investment in LockStream makes complete sense,"
 said Jeremy Hogue of Audax Ventures."We are looking at the landscape of
 technology solutions that will facilitate and drive the convergence of media
 and entertainment and the Internet. Security for media assets is critical for
 that convergence to happen.  The other solutions we have analyzed can be
 cracked or easily circumvented.  LockStream, however, provides genuine
 protection for content owners."
     Founded in 1999, LockStream has already announced a series of digital
 distribution alliances with major entertainment industry players including New
 Line Cinema, Golden Books Family Entertainment, Harvey Entertainment, Spitfire
 Records, Artemis Records and GrooveTone Records.
 
     About LockStream(TM) Corporation
     LockStream Corporation, a leading innovator in digital content
 distribution and Digital Rights Management, provides content owners a means of
 delivering secure, fast digital media without fear of piracy or unauthorized
 downloading.  LockStream's patent pending software solution gives intellectual
 property owners multiple levels of proven copy protection, a customizable,
 brand-reinforcing Morphing Player and a state-of-the art Digital Rights
 Management System.  LockStream's revolutionary low operating overhead
 (10 times smaller than competing solutions) enables secure delivery on the
 widest range of platforms including portable wireless devices.  Founded in
 1999, LockStream Corporation has offices in New York, Los Angeles and
 Bellevue, Washington
 
     About Encore Venture Partners
     Encore Venture Partners, L.P. (http://www.encorevp.com) is a venture
 capital fund focused on funding technology start-ups and emerging growth
 companies primarily in the areas of Internet and telephony infrastructure and
 real estate technology and related services.  Encore currently has offices in
 Dallas/Fort Worth, Texas and Los Angeles, California.
 
     About Audax Ventures
     Audax Ventures, (http://www.audaxgroup.com) with offices in Boston, New
 York, San Francisco and Irvine, manages the venture capital investment
 business of Audax Group.  Audax Ventures focuses on early stage and high
 growth privately held businesses and specializes in the information technology
 domains of rich media, enterprise software/ASPs, life sciences and platform
 technologies.  Audax Group is a premier alternative-asset, money management
 and investment firm based in Boston, MA.  Audax Group is currently investing a
 $75 million venture capital fund and a $500 million late stage private equity
 fund, and intends to raise a second venture fund and a mezzanine debt fund.
 Audax Group employs over 50 people including 30 investment professionals.
 
     About Time Warner Digital Media Investment Fund
     Time Warner's Digital Media Investment Fund is part of Time Warner Inc.,
 the world's leading media company.  Time Warner's businesses include cable
 networks, publishing, music, filmed entertainment, cable and digital media.
 
     About iArtisan and Artisan Entertainment
     iArtisan is the investment vehicle managed by Artisan Digital Media, the
 business unit responsible for overseeing all of Artisan Entertainment's new
 media related activities.
     Artisan Entertainment Inc. is a leading independent entertainment company
 that develops, produces and distributes entertainment product in the home
 entertainment, theatrical, pay television, and Internet arenas.  Artisan Home
 Entertainment has over 6,700 titles in its extensive library including a
 diversity of well known titles such as "Terminator," "T2: Judgment Day," "The
 Blair Witch Project," "Dirty Dancing," "It's a Wonderful Life," "On Golden
 Pond," "The Last Emperor," "Basic Instinct," "The Piano" and the "Rambo"
 series.  The company distributes video product directly to over 12,000 retail
 stores in the United States from popular brands such as Discovery, Hallmark
 and its own Family Home Entertainment, which has released titles such as
 "Merlin" and "Alice in Wonderland" as well as titles from The Baby Einstein
 Company.  On the theatrical side, Artisan Pictures is a leading producer and
 distributor of leading independent features with output agreements with
 Showtime Networks for domestic pay television as well as theatrical output
 deals with Alliance Atlantis in Canada, Momentum Pictures in the U.K.,
 Highlight Communications in Germany and Lauren Films in Spain.  Artisan's
 product is sold in international territories through Summit Entertainment.
 The company also has a joint venture with Marvel Enterprises to develop,
 produce and distribute character-based programming across multimedia outlets.
 
     LockStream, the LockStream logo and Morphing Player are trademarks of
 LockStream Corporation.  All other marks are trademarks of their respective
 owners.
 
     Media Information:
     Rob Goldstone or David Wilson
     Oui 2 Public Relations
     212 541 5698
     rob@oui2.com
 
     For information about LockStream's technology:
     Call: 212 905 6107
     Email: AllMedia@LockStream.com
 
 SOURCE  LockStream Corporation