Synacor Secures $17 Million in Funding

“C Series” round will allow for company’s rapid domestic and international growth, attainment of new strategic industry partnerships and alliances

October 24th 2006

(BUFFALO, NY) October 24, 2006 – Synacor, a leader in the development and integration of value-added online content and technology solutions for broadband and Internet service providers, today announced the closure of a $17 million “C Series” round of financing. Synacor will utilize the investment to expand its portfolio of value-added online content offerings and advanced portal solutions and better enable service providers in the United States and internationally to seamlessly extend their brand experience online while increasing revenue opportunities.

This “C Series” round of funding was led by North Atlantic Capital and included financing from Mitsui Technology Investment Group, both new investors in Synacor. Several existing Synacor investors also participated in the round, including Crystal Ventures, Advantage Capital Partners, Walden International, Intel Capital and Rand Capital SBIC. The investment reinforces Synacor’s growing leadership position in the delivery of premium online content and technology solutions that enable service providers to extend ownership of their customers through the Internet to create a highly personalized experience.

“We expect this financing to help us accelerate our delivery of exciting new products and our growth globally,” said Ron Frankel, CEO of Synacor. “We deeply appreciate the ongoing support of our investors.”

“North Atlantic has been following Synacor’s progress for more than a year, and could not be more excited to invest in this fast growing, industry-leading solutions company,” said Mark Morrissette, managing director at North Atlantic Capital. “It is a great fit with North Atlantic’s overall investment strategy, and we are thrilled to join this outstanding team.”

Synacor remains committed to preserving the value of service providers’ overall entertainment experience offerings by enhancing online content services that complement consumers’ experiences on other screens. Synacor’s customizable and comprehensive online portal and extensive alliances with key content providers delivers the commonality and structure between consumers’ experiences online that drive consumer adoption of value-added online services.

“We are pleased to add Synacor as one of our newest investments in our growing Venture and Buyout portfolio. We have been searching for leading premium content aggregation platforms for our existing media assets for quite some time,” said Bert Navarrete, director at Mitsui & Co. Technology Investment Group. “It became immediately clear that Synacor’s market leadership, with its strong and loyal customer base and premiere content partnerships, positions us well to execute on critical components of our Japanese media strategy. We look forward to expanding Synacor’s market leadership globally as we continue to provide market-entry strategy of the company to Europe and Asia.”

About Synacor

Synacor’s online content, portal and comprehensive front-end technology solutions enable MSOs, ISPs and telecommunications companies to bundle, promote and deliver narrowband and broadband premium content and services as part of existing Internet access products. Its solutions offer the combined strength of a flexible portal framework, a robust provisioning platform, a unified back-end and a network of in-demand standard and premium content – enabling service providers to maintain critical contact with consumers as they shift from screen-to-screen while seeking increasingly personalized entertainment experiences. For more information on Synacor, please visit www.synacor.com.

About North Atlantic Capital
North Atlantic Capital is an expansion stage private equity firm based in Portland, Maine. Established in 1986, North Atlantic Capital manages a pool of capital in excess of $200 million and invests in information technology, communications, and tech-enabled business service companies. In addition to growth capital and board level guidance, North Atlantic Capital offers its portfolio companies complimentary strategy consulting services and custom executive education programs at leading business schools.

To learn more about North Atlantic Capital’s investment criteria and approach to value creation, please visit www.northatlanticcapital.com

About Mitsui & Co.
Technology Investment Group
The Mitsui & Co. Technology Investment Group (MTIVG) is the investment arm of Mitsui’s Global IT Division. Together with each business unit, MTIVG represents a broader commitment of $2B in investment capital provided by Mitsui & Co., LTD. MTIVG focuses on specific market segments within the IT Sector and brings venture and buyout capital, intellectual property (IP), marketing intelligence and strategic relationships to each supported technology company. By leveraging the global resources of Mitsui and experienced team of investment and technology operating professionals, MTIVG will assist their portfolio companies to access global markets and accelerate growth. For more information, visit www.mtivg.com or e-mail info@mtivg.com.