Market Leader Sees Aggressive Growth in On-Device Portals to Media Companies

BELLEVUE, Wash. — July 30, 2007 — Action Engine® Corporation, The On-Device Portal Company™, today announced it has raised $20 million of equity in its latest round of venture funding. This round brings the total funding raised to date to $65 million and was led by current investor, Baker Capital, with participation from other current investors: Northwest Venture Associates and The Spangler Group.

The funding will be used to accelerate investment in the company’s sales, marketing and customer implementation functions. Action Engine pioneered the technology for delivering mobile on-device portal (ODP) solutions to media companies and mobile operators in 2000. ODPs are downloadable clients that reside on the wireless phone, which are developed with an underlying mission to make content, like music, city guides and video, easier to discover and use.

"In 2007 Action Engine has continued to secure a number of key clients and launch ODP solutions with major media brands, such as MSNBC.com and TiVo. We look forward to closing and successfully launching additional top tier media companies, which will reinforce Action Engine’s position as the industry’s dominant ODP software supplier,” said Scott G. Silk, president and CEO of Action Engine. “This is an exciting time to be leading the ODP revolution, and we are pleased that our investors have expressed such confidence in our future."

According to a recently published report from wireless research and consulting firm, ARCchart, the ODP market is now poised for aggressive growth and is forecast to reach $1.4 billion by 2009 with a compounded annual growth rate of 166%. Action Engine also participates in the mobile advertising market with its integrated Mobile Advertising Engine. According to the research firm, Strategy Analytics, this segment of the market is projected to reach $14.4 billion by 2011.

Bena Roberts, senior analyst at BKI Media, added, “On-Device Portal technology is starting to shake-up the mobile market in a big way. Action Engine is positioned as the leading ODP provider in the U.S., and this additional funding will likely strengthen its foothold going forward.”

"As pioneers of ODP technology, Action Engine occupies a unique position in a market that is showing significant potential," said P. Kevin Kilroy, partner of New York-based Baker Capital. "They are capturing market share faster than anyone else in the industry, and this additional funding will help them continue that momentum."

About Baker Capital

Baker Capital, founded in 1995, is a private equity firm formed to capitalize on the dynamic opportunity in the communications industry created by deregulation, new technology, and growth of the Internet. Baker Capital makes investments primarily in communications equipment, services and applications providers.

About Northwest Venture Associates

Formed in 1986, NWVA is a leading private equity firm exclusively invested in a diversity of Northwest based companies, predominantly in the information and business services, communications and consumer industries. NWVA differentiates itself by seeking emerging businesses with exceptional growth potential, adhering to an investment strategy based on fundamentals and working closely with its management teams. Since inception, NWVA has invested in over 40 companies in its targeted sectors, including several of the region's most promising and successful businesses.

About The Spangler Group

The Spangler Group is a multi-family investment office established in 1982 and headquartered in Seattle, Washington. They operate private investment partnerships on behalf of the group members with strategies in fixed income, public and private equities, hedge funds and real assets (real estate, oil and gas, and timber).

About Action Engine

Action Engine, the On-Device Portal (ODP) Company™, enables media companies and network operators to build, deploy, and manage highly personalized and intuitive suites of mobile applications that deliver a superior user experience. Action Engine’s best-in-class ODP platform incorporates intelligent mobile advertising, support for mass market handsets and broad management capabilities that increase profitability, lower cost of ownership and drive brand-awareness. As the acknowledged market leader in ODP technology, Action Engine’s award-winning software has been successfully deployed by numerous companies including MSNBC.com, TiVo, Sprint, Verizon Wireless, smarTVideo, SingTel, Optus, and Globe Telecom.

Additional information is available at www.actionengine.com

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Action Engine is a registered trademark, and Action Engine Mobile Application Platform, On-Device Portal Company, and Brand-n-Go are trademarks of Action Engine Corporation. All other names, brands, or products may be trademarks or registered trademarks of their respective owners.

Source: Action Engine