NewBay Software accelerates company and product growth plans

NewBay Software, the global leader in digital lifestyle solutions
for operators, today announced it has received €6.5 million in Series B
financing led by Boston, MA and London-based Fidelity Ventures with
participation by existing investor Balderton Capital (formerly
Benchmark Capital Europe). Balderton Capital first backed the company
in 2003. Simon Clark, a partner at Fidelity Ventures, will join the
company's board of directors.

Proceeds from this round of financing will enable NewBay to
accelerate its global expansion plans, explore acquisition
opportunities and increase investment in R & D to ensure continued
development of world class, innovative solutions that add value,
revenue and loyalty for operators. NewBay has experienced exceptional
success working with leading operators worldwide. NewBay LifeCache
product suite is powering operator services that are currently
available to over 250 million subscribers. Services include T-Mobile
USA MyAlbum, Orange Photography, Vodafone MyCommunities, O2 Bebo and
T-Mobile MyFaves.

Commenting on the investment, Paddy Holahan, CEO of
NewBay Software said, "This funding round led by Fidelity Ventures is
testament to NewBay's success, giving us additional resources and
momentum to accelerate our expansion. 2007 was a transformation for
NewBay where we experienced triple digit growth and increased
profitability. Fidelity's unrivalled experience and global network will
be of tremendous value as we continue to strengthen our position as the
leading, global provider of digital lifestyle solutions for operators."

"The mobile communities and user generated content market, estimated to
be worth $13 billion by 2011, continues to experience strong pull from
operators and equipment manufacturers, as social networking and UGC are
viewed as the next killer data app for the approximately 3 billion
mobile devices in use across the globe," said Simon Clark, who
currently serves on the boards of seven companies, including Neverfail,
Curam, Qumas and Asset Control. "NewBay has done an excellent job of
building an impressive roster of clients, such as T-Mobile, Orange,
Vodafone and Telefonica O2, with proven products that are generating
meaningful new revenues for these operators. We are excited about their
future prospects and believe that the company is well-positioned to
further strengthen its market leadership.

About Fidelity Ventures
Fidelity Ventures invests in technology companies ready to enter the
market and those poised for the next phase of growth. Its 40-year track
record includes hundreds of successful investments in the consumer,
communications, systems and software markets. Fidelity Ventures is
distinguished by the ability to accelerate market adoption for its
portfolio companies' offerings and by a global network of senior
technology and business executives. Fidelity Ventures actively manages
over $800 million from offices in Boston and London. For more
information, please visit: www.fidelityventures.com.

About Balderton Capital
Balderton Capital is one of Europe's largest venture capital firms,
committed to finding and helping talented entrepreneurs build great
companies. Based in London, its Funds total approximately $ 1.5 billion
available for investment.

Since 2000, Balderton has invested in over 70 companies across a wide
variety of technology sectors and geographies, including throughout
Europe, and in the US and China.  Notable investments include Bebo (the
leading social networking site), Betfair (online betting exchange)
Codemasters (video games developer and publisher), Habbo Hotel (teen
social networking site), MySQL (open-source database business) and
Setanta Sports (the European sports broadcaster).

About NewBay Software
NewBay Software is the global leader in digital lifestyle solutions for
operators, enabling subscribers to create, store, view and share user
generated content. NewBay LifeCache product suite empowers operators to
deliver an integrated set of converged rich-media services across any
internet connected device such as mobile, PC and TV. NewBay's carrier
grade product based solutions include photo and video albums/blogs,
social networking, handset clients, network address book and messaging
services.
NewBay enables operators to increase messaging, data and content
revenue, strengthen customer loyalty and build communities and social
networks based on user generated content. NewBay is delivering
profitable, highly successful commercial services for operators
including T-Mobile, Telefonica O2, Alltel Wireless, Orange, Vodafone,
Swisscom, Bell Mobility, Maxis and SETAR NV. NewBay is based in Dublin,
Ireland; London, UK; Dusseldorf, Germany; and Bellevue, USA. NewBay was
founded in 2002 and is privately held. Investors include Balderton
Capital and Fidelity Ventures.