PixFusion Secures $4.2M in Funding Led by Mercury Capital Partners; New Funding to Accelerate...

NEW YORK -- PixFusion LLC (www.pixfusion.com), which creates personalized branded video products and services based on its patented technology, announced that it has secured $4.2 million in its first institutional round of financing led by Mercury Capital Partners with participation from Stonehenge

PixFusion will use the funds to rapidly grow its existing children's personalized video business under its Kideo(R) brand, (www.kideo.com) by aggressively acquiring additional character licenses and expanding marketing efforts. Kideo's most popular videos include titles Dora the Explorer and Arthur, which are licensed from Viacom's Nickelodeon (NYSE: VIA) and the WGBH Educational Foundation, respectively. As well the company will seek to develop other opportunities by leveraging its proprietary technology. PixFusion will also offer advertisers and marketers the ability to deliver personalized video greeting cards, movie trailers and music videos to desktops, cell phones and other rich media devices.

Veteran media executive Allan I. Grafman and Teo Balbach of New York based Mercury Capital Partners will join PixFusion's board of directors. Grafman is an operating partner at Mercury and has been involved in leading content, media and communications companies for 30 years.

"PixFusion is at the forefront in mass-personalized video products and we look forward to working with management to drive continued growth in the dynamic market for personalized products and services," said Grafman. "This latest edition to our portfolio has the strength of a traditional media investment and the growth potential of a new media company."

PixFusion was originally founded by David M. Blumberg, who will remain Chairman of the Board.

"I'm very happy to have Mercury Capital and Stonehenge Capital as financial partners," said Blumberg. "Their expertise and experience with growth companies across media and technology sectors will help the company achieve our medium and long term goals."

About PixFusion LLC

PixFusion LLC (www.pixfusion.com), established in 2001 and based in New York City, creates personalized branded video products and services and uses its patented technology to automate the production of its finished products. PixFusion has proprietary content agreements and is continuing to expand its distribution networks to offer its personalized products direct to consumers and through retailers, manufacturers and other indirect channels. The company has commercialized children video products through its Kideo brand (www.kideo.com), a successful enterprise selling DVD videos to parents and grandparents of children ages one to seven. Kideo's existing content is licensed from some of the most prominent and respected pre-school brands including Dora the Explorer and Arthur. In addition to its consumer entertainment division, PixFusion has also entered into several licenses of its proprietary intellectual property platform based on the strength of its long standing patent portfolio.

About Mercury Capital Partners

With $77 million under management, Mercury's investment team has operating and investment experience in a broad range of media businesses including radio, cable television, broadcast towers, suburban newspapers, event marketing, concert entertainment, major league sports broadcast rights, and Internet media. For more information visit www.mercurycapitalpartners.com.

About Stonehenge Capital Company

Stonehenge Capital Company, LLC is a nationwide specialty finance firm with expertise in mezzanine and private equity, tax credit finance and structured finance transactions. Stonehenge manages approximately $500 million in private equity funds through its offices in Alabama, Colorado, Florida, Louisiana, Missouri, New York, Ohio, Texas, and Wisconsin. For more information visit www.stonehengecapital.com.