Mercent Raises $6.5 Million in Series B Financing

Retail Online Marketing Firm Expands Customer Base, Strategic
Partnerships, and Advertising Distribution

SEATTLE, WA -- (PR NEWSWIRE) -- January 16, 2008 -- Mercent, a provider of online marketing technology and services for retail merchants, today announced that the company has successfully closed $6.5 million in Series B financing. The financing was led by TVC Capital and included existing investors Madrona Venture Group and an affiliate of The Hillman Company. In connection with the financing, TVC Capital’s managing partner Steve Hamerslag will join Mercent’s board of directors.

Proceeds from this round of financing will be used to accelerate Mercent’s sales and marketing activities, introduce new value-added performance marketing services, and expand advertising distribution through The Mercent Shopping Network. The retail advertising network reaches more than 200 million active shoppers purchasing consumer goods and services across more than 50 leading Internet shopping channels including Amazon.com, Google, Yahoo!, and eBay.

"TVC Capital recognizes Mercent’s market opportunity and demonstrated progress at the intersection of software-as-a-service, retail e-commerce, and online advertising," said Hamerslag. "Mercent has established a sterling customer reputation among top-tier retailers based on innovative online marketing technology that is driving the industry forward."

Mercent recently announced new agreements with leading retail brands including RedCats Group and 1-800-Flowers; strategic partnerships with retail technology leaders Omniture, Buy.com and Shopping.com; and the launch of expanded performance marketing programs to complement the company’s subscription software services.

"Mercent has made tremendous progress during its early-stage history," said Tom Alberg, Managing Director and co-founder of Madrona Venture Group. "We’re enthusiastic about the company’s ability to create major returns for blue-chip retail clients like REI, PetSmart, and GUESS? by integrating online advertising campaigns directly with back-office retail operations."

In 2007, Mercent Performance customers exceeded 900 percent average return-on-ad-spend (ROAS) through The Mercent Shopping Network, more than twice the national industry average (Forrester/Shop.org).

"We look forward to a banner year at Mercent in 2008," said Mercent CEO and founder Eric Best. "We’re excited to welcome Steve Hamerslag and TVC Capital to the Mercent team, and to build upon our success to date helping retailers generate better returns on their product inventories and online advertising dollars."

To learn more about Mercent’s shopping feed management and data feed marketing solutions, please call 206 832 3900 or email info@mercent.com.

About Mercent
Mercent is a leading provider of online channel marketing technology and services for retailers. Through its award-winning Mercent Retail™ SAAS technology and Mercent Performance™ professional services, Mercent helps the world’s most successful online merchants including 1-800-Flowers, Bass Pro Shops, Brookstone, GUESS?, L'Occitane USA, Redcats Group, and REI optimize online shopping channel marketing campaigns to drive customer acquisition, revenues, profits, and inventory velocity. Mercent is the single point of integration with a vast online advertising network that includes transactional marketplaces such as Amazon.com and eBay; comparison shopping engines (CSEs) such as Shopping.com and NextTag; affiliate marketing programs such as LinkShare and the Google Affiliate Network; and other product advertising channels including Microsoft Bing Cashback and Google Product Listing Ads (PLA). The company is a 'Selling on Amazon.com' Certified System Integrator, Buy.com Gold Certified Partner, eBay Certified Provider, certified Google Product Search Partner. Founded by a seasoned team of Amazon.com veterans, Mercent is a venture-funded company based in Seattle, WA. For more information, visit www.mercent.com.

About TVC Capital, LLC
TVC Capital LLC (www.tvccapital.com) is a San Diego-based private equity fund focused on the investment in and acquisition of software and software enabled service firms across a wide spectrum of industries. TVC seeks investment opportunities with companies generating revenues of $3 million to $20 million. The firm typically invests in and acquires companies that meet a mission-critical need of their customer base and are in need of capital to accelerate their growth plans. TVC is managed by Steven Hamerslag and Jeb Spencer. Recent investment include: Accordent Technologies Inc., iQ4bis Inc., and MeetingSense Inc.

About Madrona Venture Group
Madrona is an early-stage venture capital firm focused on building leading technology companies. Started in 1995, the firm has established a national reputation of partnering with entrepreneurs, investors and advisors to create value together. The firm invests predominately in seed and Series A rounds across the information technology spectrum including software, Internet, wireless and infrastructure. Madrona currently manages over $400 million while delivering top-quartile performance and 30 positive exits including: Amazon.com, Isilon Systems, Classmates.com and iConclude.

About The Hillman Company
Affiliates of The Hillman Company hold a diversified portfolio of investments, including private equity, venture capital, real estate and other alternative assets. The Hillman Company is based in Pittsburgh, PA.

Mercent PR Contact
Kristine Szarkowitz
press@mercent.com
Tel: 206-832-3900