News Corp. invests in online video company

Cory Bergman January 29th, 2007

News Corp. has invested as much as 10 percent (approximately $12 million) in ROO Group, an online video technology provider that already powers the video behind FoxNews.com and other News Corp. sites. ROO competes with companies like Brightcove. Press release below…

PRESS RELEASE — ROO Group, Inc., (OTC Bulletin Board: RGRP - News) a global leader in online video solutions for Websites, content providers, and advertisers, today announced that News Corporation (NYSE: NWS - News, NWS.A - News; ASX: NWS - News, NWSLV - News) has become a strategic investor in the company.

Under the agreement News Corp. will receive up to a 5 percent interest of the current fully diluted shares in ROO, and up to an additional 5 percent interest upon News Corp. achieving certain revenue-based milestones in its usage of ROO’s products and services or as a direct investment through an exercise of warrants.

Today’s agreement solidifies ROO’s ongoing relationship with News Corporation. ROO currently powers online global video content distribution and content syndication across many of News Corp’s premier properties including The Times of London, and The Australian and has content syndication partnerships with FOX News Channel and Sky News.

“We are excited to be working with News Corp. to further harness the enormous opportunity of online video across its global network of prestigious media brands. We are further encouraged by News Corp’s proven track record of identifying and partnering with online leaders early in their growth,” said Robert Petty, CEO and Chairman of ROO.

“News Corp. looks forward to building on its successful relationship with ROO to continue the growth of News Corp’s video assets in the digital marketplace,” said Jeremy Philips, Executive Vice President, Office of the Chairman, News Corporation.

About ROO

ROO Group Inc. (OTC Bulletin Board: RGRP - News) www.roo.com through its 100% subsidiary ROO Media Corporation, is the online video solutions company focused on meeting the specific needs of large enterprise companies globally. The company’s proprietary platform, the ROO Video Exchange, simultaneously services multiple video channels, audience segments and advertisers and, as such, has become the leading platform in content aggregation, distribution and targeted advertising. ROO’s unique ability to offer a “many-to-many” service has helped secure its position as the Internet broadcast company of choice for companies seeking effective strategies for monetizing online video.