Press Release
E INK CORPORATION ANNOUNCES $37 MILLION IN SECOND ROUND OF VENTURE FINANCING
New Investment from Domestic and International Media Companies, Leading Funds and Existing Investors
Cambridge, MA. - January 27, 2000 – E Ink Corporation, the leading developer and marketer of electronic ink technology, today announced that it has secured $37 million in its second round of equity financing. The financing brings on board strategic partners in key media industries that will benefit from E Ink's electronic ink technology. E Ink will use the funding to advance research and production of electronic ink and to move the technology into additional commercial applications, including E Ink's ultimate goal of re-printable books and newspapers.
"This past year has been a huge success for E Ink. We achieved or exceeded every major goal we set for ourselves," said Jim Iuliano, CEO of E Ink. "Our first product, ImmediaTM, was released on schedule last spring. We have signed up numerous customers and are well on our way to building a new communication medium. In the lab, we are progressing on our next technical goals, such as the creation of novel high-resolution displays, and have begun to enter into development partnerships, most recently with Lucent Technologies (NYSE: LU)."
The private financing was shared by corporate and venture investors in the United States, Europe and Asia. New publishing and interactive media investors include Havas (a division of the Vivendi Group in France); Gruppo Espresso (Italy); Investpress, Inc. (Spain); CNI Ventures (a division of Central Newspapers, Inc., NYSE: ECP) and The McClatchy Company (NYSE: MNI) in the U.S. Cabot Corporation (NYSE: CBT) and an affiliate of FleetBoston Financial (NYSE: FBF) also made initial investments in this round. Existing investors Atlas Venture, Applied Technology Ventures, Solstice Capital, The Hearst Corporation and Creavis GmbH also participated in the financing.
"Our second round of funding not only will allow us to continue on our strategy of rolling out signs, devices and ultimately electronic books and newspapers, but has helped us add major corporate investors who share our vision for electronic ink and can provide a global strategic benefit," added Iuliano. "We now have content producers in five of the world's major languages and strong distribution opportunities in both the U.S. and Europe. With so much experience and breadth from the world of traditional publishing to guide us, we are ideally positioned to develop real-world solutions that bring paper into the digital age."
E Ink focused its second round of financing on securing relationships and investment from companies that will benefit from E Ink's ultimate plans to create electronic books and newspapers. In the United States alone, E Ink's media industry investors have properties spanning more than 50 major daily and weekly newspapers, 16 magazines, 26 television stations and more than 15 advertising and marketing companies.
"The future distribution of news and information is a frequently discussed topic at Hearst," said Kenneth A. Bronfin, senior vice president and deputy group head of Hearst Interactive Media and second time investor in E Ink. "The Internet has brought the urgency of news to a new level, but current electronic distribution options are limited to the desktop or bulky handhelds. E Ink's "electronic paper" has the potential to bring readers up-to-the-minute news on a flexible, easy-to-read electronic display that has the look and feel of ink on paper. Investing in this company is a perfect fit for us."
"Havas is already a major player in publishing and multimedia. Becoming a core shareholder and strategic partner of E Ink reflects our commitment to harnessing technologies to promote editorial content," said Agnes Touraine, executive vice president of Havas. "We were the first European publishers to launch an e-book business and will be pursuing growth in this emerging market. E Ink's early successes testify to this new technology's exciting potential, plus its impact on all media. This is particularly true in electronic publishing, where we are convinced that our own outstanding editorial content combined with a reading experience comparable to that offered by traditional print books will help win new markets."
About E Ink Holdings
Founded in 1992 by Taiwan's leading papermaking and printing group YFY (1907.TW), E Ink Holdings Inc. "E Ink" (8069.TW) is the pioneer of TFT and ePaper business in Taiwan. Its corporate philosophy aims to deliver revolutionary products, user experiences, and environmental benefits through advanced technology development. This vision has led to its continuous investments in the field of ePaper display as well as its 2008 acquisition of Hydis Technologies, manufacturer of the world's best wide viewing angle LCDs and its 2009 acquisition of E Ink Corp., the worldwide leader in ePaper. Listed in Taiwan's GreTai Securities Market and the Luxembourg market, E Ink is now the world's largest supplier of displays to the eBook market. For corporate information, please visit www.einkgroup.com; for EPD information, please visit www.eink.com / tw.eink.com; and for FFS information, please visit www.hydis.com.