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05/10/2006   Generation Partners Invests in Demand Media, Inc

Demand Media is a next-generation online media company

May 10, 2006 ­-- Generation Partners announced today that it has made an investment in Demand Media, Inc. (the “Company”). Demand Media is a next-generation online media company, formed by Richard Rosenblatt, former Chairman of MySpace.com and CEO of Intermix Media, Inc. (Amex: MIX). Generation Partners is a $325 million private equity firm focused on the media, information services, and business services sectors. Generation’s co-investors in the transaction are Spectrum Equity Investors and Oak Investment Partners.

Demand Media will leverage the rapid evolution of the internet to create an online media business with low content creation, publishing, and traffic acquisition costs, and advertising sales which are automated, recurring and predictable. The Company, with offices in Los Angeles and Seattle, has been built to pursue this vision through the merger of three entities. These companies are: eNom, the third largest domain registrar in the world; eHow, a niche content site of “how-to” articles; and a domain name portfolio. Currently, Demand Media’s 150,000 owned domain name properties consist only of paid links – links to other web sites where the domain name owner receives revenue for delivering visitors through the links. Management’s plan is to add light content to these sites, which it believes will greatly increase both the traffic to these properties and the advertising revenue generated from them. The Company will also produce revenue from its domain registration business, which has over 6.4 million domain names registered on its platform. Approximately 10% of all global internet queries pass through a site which is registered with Demand Media.

Demand Media is led by an experienced management team. Richard Rosenblatt is a highly successful executive in the online media and marketing business. Prior to founding Demand Media, Mr. Rosenblatt served as Chairman of the Board of MySpace.com and CEO of Intermix Media. According to the internet rating company Alexa.com, MySpace is now the #4 most trafficked site on the internet, behind Yahoo, Google, and MSN. Mr. Rosenblatt led the company through its successful sale to News Corporation (NYSE: NWS) in September 2005 for $650 million. Previously, Mr. Rosenblatt was Chairman and CEO of iMALL (NASDAQ: IMAL), which was sold to Excite@Home for $565 million in October 1999. In addition, Mr. Rosenblatt was a founding investor and Vice Chairman of Great Domains, one of the pioneers in the domain industry, which was sold to Verisign in October 2000 for $100 million. Mr. Rosenblatt has also recruited several executives with deep online media, domain, and business development expertise.

John Hawkins, Managing Partner of Generation Partners said, “We are pleased to invest behind Richard, a world-class entrepreneur and CEO. His vision for Demand Media is to create a new online media company of significant scale, and we are excited to work with him and his management team to help them achieve this goal.”

Richard Rosenblatt, Demand Media’s CEO said, “Generation Partners’ combination of financial, media and investing experience made them the perfect partner for our company. I worked closely with them during my tenure at MySpace/Intermix and was repeatedly impressed by their insights and understanding of the internet media space. “

About Demand Media

Founded in April 2006, Demand Media (www.demandmedia.com) is a next-generation web media company that receives more than 25 million unique visitors per month through its more than 150,000 domain names and niche content web sites. Demand Media's traffic is organic and its content proprietary, user-generated and viral, allowing for a unique, targeted and effective marketplace for both users and advertisers.

Demand Media's unique combination of a world-class registrar (eNom), more than 150,000 domain names, and ever-growing content and content web sites give advertisers an innovative new medium to reach customers worldwide. Demand Media is headquartered in Los Angeles, with investment capital from Generation Partners, Spectrum Equity Investors, and Oak Investment Partners.

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