SAN DIEGO, Calif. -October 30, 2007 - Imagine Communications, developer of the industry's most powerful and scalable digital video platform, today announced the completion of a $15 million Series B round of expansion financing, bringing total venture capital investment in Imagine Communications to more than $24 million. The round was led by Court Square Ventures, a top venture capital firm, with participation by all existing investors including Columbia Capital and Carmel Ventures. The new financing will be used to accelerate Imagine's growth and commercial deployments in digital video markets with its breakthrough VBR/Statmux (Variable Bit Rate and Statistical Multiplexing) technology, which offers 50 percent more bandwidth and improved video quality of digital video signals.

"The timing of this funding is critical as service providers launch and scale HDTV, VOD, SDV (Switched Digital Video), IPTV and other advanced PersonalizedTV™ services and applications. These services will become key for operators to compete in an environment that includes Cable, DBS, Telco and Wireless service providers," said Imagine's President and CEO, Jamie Howard. "As the demand grows for these new services, Imagine's solutions will allow operators to rapidly deploy and scale while delivering optimal video quality with bandwidth efficiency."

The company also announced that James B. Murray, Jr., the managing general partner at Court Square Ventures, has been appointed to its board of directors.

Imagine is scheduled to commercially launch its first product in the fourth quarter of 2007. The company's innovative solutions will enable system operators to dramatically improve bandwidth efficiency without sacrificing video quality, allowing them to rapidly deploy advanced digital video services such as HDTV, VOD and SDV. Imagine's software architecture runs on carrier-grade, off-the-shelf hardware and plugs seamlessly into existing infrastructure.

About Imagine Communications
Imagine Communications has launched the industry's most powerful and scalable digital video platform enabling system operators to cost-effectively increase bandwidth efficiency and video quality. The Imagine ICE Video Platform™ incorporates breakthrough next-generation video processing and multiplexing technology, enabling up to 50 percent more streams versus today's approaches. Imagine's revolutionary ICE-Q™ video quality measurement algorithms enable better video quality at any given bit rate. Imagine is based in San Diego with R&D and engineering in Israel. Its strong management team includes industry leaders with decades of experience delivering innovations in video communications. Founded in 2005, Imagine Communications is privately held and funded by Carmel Ventures, Columbia Capital and Court Square Ventures. www.imaginecommunications.com.

About Court Square Ventures
Court Square Ventures is a venture capital firm that invests in early-stage communications, information technology, and media companies, with a particular interest in points of convergence between these industries. The firm's deep understanding of its three target sectors stems from the partners' 60 years of operating and investing experience in these areas. Court Square uses this base of experience to support young companies executing the critical transitions from pre-revenue to first sales and accelerating growth. Court Square seeks to establish close partnership with passionate, committed entrepreneurs and like-minded co-investors. The principals bring a broad national network of target sector contacts to bear in helping portfolio companies source customers, find strategic partners, and recruit key personnel. For more information, visit www.courtsquareventures.com.

About Carmel Ventures
Founded in 2000 by pioneers and leaders of the Israeli high tech industry, Carmel Ventures is one of Israel's leading venture capital funds focused on information technology with $372 million under management. Led by former entrepreneurs and executives of the software, communications and investment industries, Carmel provides active, hands-on support to its Israeli, European and U.S. portfolio of companies. Carmel, headquartered in Herzliya, Israel enjoys a worldwide network of industry, strategic and investment resources. Carmel provides significant capital and support through the growth cycle of its portfolio companies and is recognized as a true company building fund in Israel. For more information, visit www.carmelventures.com.

About Columbia Capital
Columbia Capital is a venture capital firm specializing in the communications and information technology industries. With its latest $560 million fund, it now has $2 billion under management. Based in Alexandria, VA and Waltham, MA, Columbia Capital has an experienced investment team with diverse industry backgrounds in entrepreneurial ventures, management, finance, regulation and engineering. Its team has managed investments in approximately 100 companies in the communications and information technology sectors, ranging from small, early-stage investments to multibillion-dollar public companies. For more information, visit www.colcap.com.