3i leads $100m in Demand Media

Demand Media Completes $100M in Funding 3i, Oak Investment Partners and Spectrum Investors fuel rapid growth of new media company

Santa Monica, CA, September 28, 2006 -- Demand Media, Inc., the next-generation web media company, today announced it has completed its second round of funding totaling $100 million.  The financing round was co-led by 3i and Oak Investment Partners, two leading venture capital and private equity firms.  Spectrum Equity Investors also participated in this round.  The new funding will be used to further increase the company’s organic and strategic growth.   

“We believe that this is the right time to build a different type of new media company,” explains Richard Rosenblatt, Demand’s chairman and CEO.  “The additional capital will allow us to rapidly seize on unique market opportunities in a truly innovative way.”

"Demand Media’s executive team has a vision for the future of new media and a proven track record for delivering on its vision,” said Robin Murray, 3i partner. "We are excited to partner with such a dynamic organization that has taken the unique approach of combining domain services, brand-able domains and niche content web sites to form a new media company."

“As traditional media companies are trying to grasp the power of online communities and user-generated content, we see an opportunity for Demand Media to redefine this space,” said Fred Harman, managing partner, Oak Investment Partners.  “As a Demand Media partner since its inception, we believe this company has what it takes to make the most of the current market environment and we are looking forward to its continued success.”

The securities issued by Demand Media in the financing were issued to a limited number of accredited investors in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended, and may not be resold absent registration or an exemption from the registration requirements of the Securities Act.  The financing described in this press release has been completed, and this press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities.