NEW YORK, NY, May 10, 2007 – ROO Group (OTCBB: RGRP), a global leader in online video solutions for content providers, advertisers and Websites, today announced it has completed a private equity financing with gross proceeds of $25 million, in a common stock transaction. The participants in the transaction are accredited institutional investors, the majority of which are existing investors.

ROO will use the net proceeds from the sale of common stock to fund ongoing operations, to pursue previously announced acquisitions, further develop the ROO VX video platform and expand the company’s sales and marketing resources.

The company issued 10 million common shares at $2.50 per share and 3,000,000 warrants exercisable at $4.50 per share and callable at $6.00 per share. The company is expected to file a registration statement pertaining to the transaction within 30 days.

“Our ability to secure this important financing highlights our growth potential and the tremendous progress we have made in strengthening our suite of integrated online video solutions for publishers, content producers and advertisers,” said Robert Petty, Chairman and CEO of ROO Group. “We are well-positioned to continue to expand our business and product offerings globally, while strategically aligning with key players in the rapidly growing online video industry.”

Some ROO powered sites include:

Europe
The Mirror

USA
Verizon Surround
University of Massachusetts

Asia Pacific
Network 10
Big Brother

Brad Edwards
Brainerd Communicators, Inc.
Ph: 212-986-6667
edwards@braincomm.com