Real Media Secures $30 Million in Financing

Ad serving company Real Media secured $30 million in financing from
existing investor Advance Internet,
a community Web site designer, and its largest stockholder, Swiss on- and
offline ad sales company PubliGroupe, offsetting the
company’s dwindling cash reserves.

According to a statement from company officials, Real Media will use
the proceeds to advance its infrastructure development, to extend its
marketing and client service reach and to fund national and international
expansion.

“We are pleased to have the continued support of two highly
respected
media and advertising companies,” said Real Media chief financial
officer
Norman Blashka.

“This funding allows us to remain focused on our
business
plan and provides us with the ability to continue our rapid growth.”

But Real Media, which filed in February to go public with the aim of

raising $71 million, has recorded mounting expenditures, despite
increasing revenue. By January, the company had spent about $13 million
of
the $14.5 million it had received from investors since its inception in
1996, according to SEC filings.

A pricing date has not yet been announced. The stock is expected to
be
priced between $9 and $11 on the NASDAQ exchange, under the symbol
RLMD. Given the current stock market conditions, Real Media is not the

only company to be holding off on its IPO, perhaps because it doesn’t

think it could sell shares at its desired price.

In other company news, Real Media acquired Stockholm, Sweden-based
online
ad company Internetsäljarna
AB. Clients of the company include European portal Everyday.com and Swedish business
publications Dagens Industri, Fondstar and Privata Affärer.

The plan to integrate the two companies includes combining the staff
and
resources of Internetsäljarna with those of the existing Real
Media
office in Stockholm. The resulting office will be named Real Media
Sweden.

“This acquisition reinforces our commitment to become an industry
leader
in Sweden, the fourth-largest Internet ad market in Europe,” said Real
Media
chief executive officer Chris Neimeth.

“Internetsäljarna is the leading brand-focused ad sales company
in
Sweden, with a strong position and a great track record; a valuable
addition
to Real Media,” he added.

“Since its inception, Internetsäljarna’s mission has been to
bring
the brightest, most innovative Internet advertising solutions to the
companies it represents,” said Internetsäljarna founder Hans
Fjärem.

“By joining forces with Real Media we are able to extend
our
reach through one of the pioneers of global Internet advertising —
creating
new opportunities for advertisers and media-owners alike. We believe that

the merged organizations will build upon the
achievements this far to deliver a truly outstanding service to an
increasing number of clients.”