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Innovation Interactive Announces Management Buyout

ABS Capital Partners backs management team, solidifying the Company’s leadership position in fast-growing digital marketing sector

New York, NY – June 4, 2007 – Innovation Interactive, a search-centric digital marketing services company and the parent company of leading digital brands such as 360i and SearchIgnite, today announced that it had completed a management-led buyout from its parent company, Livedoor Japan. The buyout was funded by Innovation Interactive’s management team and employees, and backed by ABS Capital Partners, a leading later-stage growth company investor with $1.5 billion under management. Terms of the deal were not disclosed.

“We are excited to have the opportunity to once-again be independently owned and operated. This is a huge strategic advantage for our world-renowned clients, as we can tap into our entrepreneurial spirit to innovate quickly within the rapidly evolving marketplace,” said Will Margiloff, founder and CEO of Innovation Interactive. “ABS’ experience and understanding of our business and the industry in aggregate makes them an ideal partner and we’re delighted to have them on board as we continue to innovate.”

With more than 170 employees in New York, Atlanta and Chicago, Innovation Interactive is a leader in helping advertisers acquire customers and build brands across a spectrum of digital media. Innovation Interactive’s divisions and solutions include:

360i: A leading search-centric agency, providing large brand marketers with a combination of digital media strategy, client service and technology to achieve exceptional results via search engines and other auction and brand based online media.
SearchIgnite: A leading auction-based media management technology providing the platform for advertising agencies and Fortune 1000 companies that want to manage their media internally.
The Innovation Interactive Network: A robust performance advertising network of proprietary and third party content sites and direct navigation domains that provides advertisers – both directly and through their agencies - with access to a vast audience using both text and display advertising.

Since its inception more than five years ago, the company has capitalized on the burgeoning shift in marketing dollars online combined with explosive growth in auction based media. The company’s digital assets are well positioned as evidenced by the massive growth in search marketing and the expanded use of auction based media by Google, Yahoo and Microsoft as a tool to drive advertising across search, display and online video.

"Innovation Interactive is a great example of the kind of company we look for as investors, bringing a cohesive, sharp management team, strong client relationships and a proven ability to adapt to the everchanging digital landscape," said Ralph Terkowitz, General Partner at ABS Capital Partners. "As more dollars flow to online marketing, marketers will increasingly need sophisticated solutions to help navigate through the complicated world of digital media, and we look to the team at Innovation Interactive to continue to capitalize on the growing demand for their offerings."

Innovation Interactive’s management team, headed by industry veterans Will Margiloff, Bryan Wiener and Scott Levine, will continue to run the company, delivering on its strategy to serve as an effective bridge between marketers and consumers. Will Margiloff and Bryan Wiener will be joined by Ralph Terkowitz and Deric Emry, General Partners at ABS Capital on its Board of Directors.

Savvian Advisors LLC acted as exclusive financial advisor to Innovation Interactive. RBC Capital Markets acted as financial advisor to Livedoor Japan.

About Innovation Interactive
Headquartered in NYC with offices in Atlanta and Chicago, Innovation Interactive was formed in May 2002 to help marketers achieve measurable results with their online campaigns utilizing a suite of full-service solutions. Through its operating units, 360i, a full-service search centric Agency, SearchIgnite, a provider of search and auction media management Technology, and a Performance Ad Network, Innovation is positioned to bring value to Fortune 1000 companies, as marketing dollars continue to shift from traditional media outlets to online advertising. The Company currently manages over $250 million of digital media annually for a client roster that includes such leading companies as NBC Universal, Office Depot, Saks Fifth Avenue, Scripps Networks and H&R Block, along with the largest interactive agencies.

About ABS Capital Partners
Founded in 1990, ABS Capital Partners has established a strong track record for investing in later-stage growth companies. With $1.5 billion under management, ABS Capital helps companies choose the growth initiatives that build the greatest long-term value. ABS Capital has partnered with numerous portfolio companies to achieve successful outcomes, including over 40 initial public offerings and acquisitions by market leaders like CBS Corporation, EMC Corporation, LabCorp and Pitney Bowes Inc. For more information, please visit www.abscapital.com.

Contact: Sarah Hofstetter
Innovation Interactive
212-703-7220
sarah@innovationinteractive.com

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