Investment

NewMedia SPARK PLC 13 July 2000 NewMedia SPARK plc invests £600,000 in Touch Clarity Limited to develop internet-based Customer Relationship Management software NewMedia SPARK plc, the technology and internet investment company, today announced that it has invested an initial £600,000 in Touch Clarity Limited. Touch Clarity is developing Customer Relationship Management (CRM) software which will improve the commercial efficiency of websites by enabling them to present users with personalized content. Touch Clarity will use data-mining technology and a shared repository of user information to help websites present more relevant information to their users which will reduce attrition, increase dwell times and e-commerce revenues. It is estimated that the global CRM market will be worth £10.5bn a year by 2003 with an annual growth rate of 49%. The investment forms part of an initial £1 million seed round of venture capital funding from NewMedia SPARK and JAFCO Co., Limited, a leading Japanese venture capital investor. The funds will enable Touch Clarity to develop and package its first product, aimed at the internet marketplace. Touch Clarity intends to develop further products for other interactive media such as digital television and wireless. NewMedia SPARK has an option to invest a further £900,000 and JAFCO a further £600,000 to bring the total investment to £2.5 million. Touch Clarity was founded by Paul Phillips and Alex Kelleher. Paul Phillips was previously European Managing Director of Urban Science, a leading data mining software supplier and Alex Kelleher was founder and CEO of Vivid Edge, the London based internet consultancy which was sold to Framfab earlier this year. Alex remains Non-Executive Chairman of Framfab UK. Commenting on the investment, Andrew Carruthers, COO of NewMedia SPARK plc, said: 'We believe that there is huge market potential for effective personalization tools across all interactive media. We are pleased to have the opportunity to invest in a pioneering company in this field with a highly credible management team and a distinctive business model. We are also pleased to be working with JAFCO on this investment and we look forward to further co-operative investments with them in the future.' Paul Phillips, CEO of Touch Clarity said: 'The Internet is an immature medium that is about to go through some radical changes. Touch Clarity is one of a handful of companies world-wide in the race to develop software that enables web-sites to become active learning systems.' Alex Kelleher, Director of Sales and Marketing at Touch Clarity, said: 'Our software will have far-reaching consequences in terms of making web-sites accountable and efficient. I am confident that the market is now ready for sophisticated personalization tools.' Akira Oka, Head of JAFCO's investment team in London commented: 'We believe that Touch Clarity is addressing enormous under- served demand in the eCRM space. We are very excited to work with the management with strong track records in this business. We are also pleased to be working with a leading internet investor, NewMedia SPARK. We look forward to developing a good relationship on this investment and more opportunities to collaborate with them in the future.' _____________________________________ For further information, please contact: NewMedia SPARK 0207 851 7777 Fenella Copas Buchanan Communications 0207 466 5000 Tim Anderson/Isabel Petre Touch Clarity Paul Phillips 07884 311 848 Alex Kelleher 0976 272 232 Notes to Editors NewMedia SPARK NewMedia SPARK plc, listed on the London Stock Exchange's Alternative Investment Market, is one of Europe's leading listed technology and internet investment companies. SPARK is building its portfolio of investments in early- stage companies in the UK, Scandinavia and elsewhere in Europe. Based principally in London and Stockholm, SPARK has one of the largest and most experienced teams in Europe, with skills ranging from investment banking to active involvement in the formation and running of new media companies. SPARK's current portfolio of 46 investments spans the following sectors: Internet transaction platforms, Interactive entertainment, Wireless infrastructure and applications, Web infrastructure tools, Internet content and commerce. Touch Clarity Touch Clarity creates software that proactively explores and learns about customers by observing online behaviour, and then maximizes the commercial performance of online content. The founders are Paul Phillips, former European Managing Director of data mining company Urban Science, and Alex Kelleher, Former CEO of leading London internet services company Vivid Edge (now Framfab). The unique combination of experience and core technology available to Touch Clarity make it one of the best positioned companies to take advantage of the growing market of content personalization.
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