RICHARDSON, Texas, April 7, 2004 (PRIMEZONE) -- Immediatek, Inc. (OTCBB:ITEK) today announced the closing of a private round of funding totaling more than $1.3 million for its proprietary NetBurn(TM) product line. The funding was led by Jess Morgan & Company of Los Angeles, California, a business and financial management firm well-known to the entertainment industry.
The NetBurn(TM) product line, including NetBurn Secure(TM) and the NetBurn Portal System(TM), offers musicians and labels not only new distribution models for their digital content, but also increased revenues through copy control technology that helps to reduce Internet piracy.
Immediatek's CEO and founder, Zach Bair, said that the capital will be used for operations expansion and continued development of its NetBurn(TM) and NetBurn Secure(TM) product lines.
"We welcome the investment as an opportunity to answer the increased call for our technology," said Bair. "And we are excited because Jess Morgan brings a lot to the table due to its depth of knowledge and expertise and close ties to the entertainment industry that date back to 1967."
Also participating in the round were Doman Technology Capital of Dallas; Kestral Capital of Houston, Texas; Pangloss International, longtime Immediatek supporter and advisor Gary Blum; as well as a number of individual investors.
Paul Marin, COO of Immediatek, and former CEO of LCD Interactive, which Immediatek acquired last year, added that the capital will help to solidify Immediatek's future.
"Although Immediatek has been partially self-funding through its own revenue stream, this capital infusion will provide us with the opportunity to fully develop the company into a profitable venture," said Marin.
Bair, a musician and entrepreneur, previously founded and raised more than $12 million in initial funding for PowerUp Networks (now known as Voyence).
NetBurn(TM) and www.netburncd.com was launched March 17 at the South by Southwest Music Festival in Austin, Texas, with the help of award-winning recording artists Larry Dunn of Earth, Wind and Fire; Cindy Blackman, solo artist and Lenny Kravitz's drummer; Pat DiNizio, frontman of The Smithereens; and Foley, legendary bassman for Miles Davis and George Clinton. All of the above have upcoming projects being released through NetBurn's(TM) digital label and catalog.
Safe Harbor Statement: This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors, including but not limited to, changes in the retail market place, changes in underwriting results affected by economic conditions and other factors described from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10KSB for the year ended December 31, 2002. All forward-looking statements made in this press release are based on information presently available to management of the Company. The Company assumes no obligation to update any forward-looking statements.