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Zmags Raises $6 Million to Fuel Innovation in Tablet-Based Commerce

  Zmags Raises $6 Million to Fuel Innovation in Tablet-Based Commerce

  North Atlantic Capital Leads Round; Managing Director David Coit Joins the
                                    Board

Business Wire

BOSTON -- October 25, 2012

Zmags, provider of commerce-enabled digital catalogs and publications, today
announced that it has completed a $6 million investment led by North Atlantic
Capital. The firm’s managing director, David Coit, joins Zmags’ board of
directors. Zmags’ previous investors – OpenView Venture Partners and NorthCap
Partners – also participated in the round, which will be used to accelerate
growth and fuel product innovation to meet the needs of large retail and
consumer brands looking to engage with shoppers across mobile, social and
online channels. This brings Zmags’ total funding to $18 million.

Zmags is the only technology provider that enables retailers and brands to
build engagement and commerce directly into digital catalog and publication
experiences across all channels and devices from a single platform. In Q3
2012, the company signed 74 new accounts, representing a 28 percent increase
year over year. Additionally, Zmags continued to deliver bespoke digital
shopping experiences for world-class brands such as Musician’s Friend,
Harper’s BAZAAR, Kenneth Cole, Express, The Container Store, Serena & Lily and
PartyLite.

“Zmags’ technology provides marketers with the ability to create and deploy a
deeply engaging online experience,” said Coit. “We were impressed with Zmags’
commitment to helping retailers engage audiences that are shopping and
consuming content in new ways, particularly through smartphones and tablet
devices. We’re excited to support Zmags as they accelerate their growth and
look forward to working with the Zmags leadership team as they continue their
penetration of the e-commerce marketplace.”

By the end of this year, the number of U.S. tablet users will reach nearly 70
million, up from 34 million in 2011. Tablet users consume more media than the
average smartphone or PC user and they avidly shop and buy products on their
devices (source: eMarketer). Zmags brings commerce-enabled catalogs and
publications to tablets to effectively engage and appeal to the unique needs
and preferences of the mobile shopper.

“The massive adoption of tablets has amplified demand for our offering, as
consumers increasingly engage with their favorite retailers and brands on this
personal device,” commented Zmags President Scott Bleczinski. “As we continue
our growth, partners like North Atlantic Capital, who share our strategic
vision, are incredibly valuable. This investment is validation of the huge
market opportunity for a unique platform like ours.”

About North Atlantic Capital

North Atlantic Capital is an expansion stage venture capital firm based in
Portland, Maine, investing primarily in B2B technology service companies.
North Atlantic provides both equity and subordinated debt investment
structures to high growth companies with unique technologies that address
large market opportunities. Established in 1986, North Atlantic is currently
investing its fourth fund, capitalized at $100 million and raised in 2006.
Other current investments in the fourth fund include Autotask, ConnectEDU,
OnForce, Synacor (NASDAQ:SYNC), Tangoe (NASDAQ:TNGO), Vivisimo, and Voxeo.

About Zmags

Zmags unlocks new revenue opportunities for retailers and marketers by
delivering fully-branded, commerce-enabled digital catalogs and publications
that are consistent across all consumer touchpoints. The company works with
world-class brands including Audi, Harper’s BAZAAR, Serena & Lily, The
Container Store, Tesco, PartyLite, Brahmin Leather Goods, Little Tikes
Commercial, CVS, Lenovo, Spanx Inc. and Musician’s Friend. The Zmags platform
provides an immersive digital environment that invites discovery, deepens
customer engagement and allows streamlined purchasing directly from the page.

Zmags is among the fastest growing technology companies in North America,
having been named to the 2012 Red Herring Top 100 North America Tech Startups
and the 2012 Inc 5000, and is ranked #70 on the Deloitte 2011 Technology Fast
500. Zmags is headquartered in Boston, Mass. with offices in London and
Copenhagen. For more information about Zmags, please visit www.zmags.com or
follow us on Twitter: @zmags.

Contact:

fama PR
Keri Bertolino, 617-986-5007
zmags@famapr.com