Zmags Secures $7 Million in Financing to Fuel Growth in Multi-Channel Rich Media Merchandising and Commerce

• The financing arrives as Zmags continues to add innovative world-class retailers and consumer brands to its customer portfolio, includingKenneth Cole, Express and Tesco.These companies are using
• ZmagsCommerceProto design brilliant and consistent marketing and merchandising campaigns across social, mobile, tablet and ecommerce platforms
• Zmags is one of the fastest growing technology companies in North America, ranking #70 on the Deloitte 2011 Technology Fast 500, with 1,730 percentrevenue growthsince 2006.


• This latest round of financing will enable Zmags to continue its global development plans forCommercePro, its SaaS platform that integrates commerce transaction capability directly into the digital merchandising and catalog environment and relieves retailers from the burden of IT constraints.
• Zmags’ CommerceProisdriving as much as a 500 percent increase in page views, more than 40 percent lift in order sizes, and 100 percent increase in conversions, significantly augmenting the results of retailers’ and brands’ core e-commerce platforms.
• With this proven performance, coupled with the explosive growth of mobile, socialand tablet commerce, demand for Zmags’ CommercePro has exceeded expectations. The new round of financing will enable Zmags to further fast-track its product development, client services and strategy, enabling the company to fully capitalize on this explodingmarket opportunity in the new year.
• Zmags anticipates closing an additional growth equity round in 2012, with a leading global private equity firm that has significant retail and brand experience, to support futureexpansion and strategic acquisitions.

Supporting Quotes:

“This additionalfinancing supports our pioneering position in the rich media merchandising space, especially in tablet, mobile and social commerce,” said Michael Schreck, CEO and President, Zmags. “The immersive ‘shopping discovery’ experience that our platform uniquely delivers leverages the intuitive navigation millions of consumers now adore with the tablet (particularly the iPad). Our flagship offering,CommercePro, along with our full suite of SaaS offerings, providethe most advanced rich media merchandising platform on the planet,already serving global leaders including Kenneth Cole, Tesco, Ikea, Express, Neiman Marcus, Laura Ashley and thousands of others.”

“The tablet and social commerce markets are booming. We look forward to continuing to support Zmags’ rapid growth and momentum as the preferred platform for top global retailers and brands looking for the best way to truly engage their consumers across all these new mediums,” said FirasRaouf, Venture Partner, OpenViewVenture Partners.

“Zmags’ SaaS technology is squarely in the sweet spot of the mobile,tablet and social commerce areas," said Bob Foley, managing director,Square 1 Bank. "We look forward to further supporting their innovativemanagement team and ongoing development of the company.”

About Zmags

Zmags helps thousands of the world’s most progressive global retailers and brands design brilliant and consistent marketing and merchandising campaigns across social, mobile, tablet, and e-commerce platforms, driving product discovery and inspiring impulse purchases. Using the Zmags on-demand rich media merchandising platform, leading brandshave measurably and dramatically increased customer engagement, conversion rates, order size and brand loyalty without the burden of IT constraints.Zmags is among the fastest growing technology companies in North America, ranking #70 on the Deloitte 2011 Technology Fast 500.Zmags is headquartered in Boston, MA. with European offices in London and Copenhagen. For more information, please visit www.zmags.com.