Embanet Announces Strategic Investment from Technology Crossover Ventures and Knowledge Universe Limited

Leader in Education Services for Online Graduate Degree Marketplace to Strengthen and Scale Business

Toronto, Canada, July 9, 2007 - The vote is in for best practices in legal distance education and an Embanet course has been declared the winner.

Embanet, the leading provider of fully hosted and supported e-Learning solutions to educational institutions, has announced that Technology Crossover Ventures (TCV) and Knowledge Universe Limited (KUL) have made a strategic investment in the company. The investment marks the first external round of funding received to date, which Embanet will use to scale and expand its leading business to service more universities and graduate degree programs. Embanet founders will retain an ownership position in the company along with TCV and KUL, which will share ownership and provide guidance and support to the company moving forward. Terms of the transaction were not disclosed.

"As we continue to position Embanet for rapid growth in the continuing evolution of the online industry, we could not have hoped to collaborate with more knowledgeable or more experienced partners. TCV has an unparalleled track record building high-growth e-commerce companies while providing top-notch service and support," said Jeffrey E. Feldberg, Embanet Chairman. "Complementing TCV's breadth of e-commerce expertise, KUL has one of the largest and most impressive portfolios of education companies and the global presence to help us continue to expand. We're thrilled to have the privilege to work with such highly regarded and experienced partners."

Embanet co-founders Jeffrey Feldberg and Steve Wells will continue to hold a significant ownership and will be involved in continuing to advise the company. TCV general partners John Drew and Jake Reynolds, as well as KUL partners Michael Neumann and Adam Cohn, will also provide oversight and guidance moving forward.

"We have analyzed the market and strongly believe that Embanet is the fastest growing and most impressive provider of education services for the online graduate degree marketplace," said John Drew, general partner at TCV. "The company has assisted top-tier universities to rapidly grow their online graduate programs while providing superior services, resulting in industry-leading graduation rates. We intend to utilize our extensive e-commerce connections and expertise to help Embanet achieve its full potential."

"The industry vision and foresight demonstrated by the Embanet management team has positioned the company for tremendous growth," said Michael Neumann, a partner at KUL. "Embanet has built a remarkable business and we look forward to applying our vast industry expertise to help the company expand its geographic presence and compelling market offering."

TCV is a leading provider of growth capital to successful e-commerce companies including Capella University, eHarmony, Expedia, Fandango, Netflix, NexTag, Orbitz and Zillow. KUL companies provide early childhood education programs, primary-through-post-secondary curricula, and supplemental educational services at thousands of physical locations and through top-rated online schools and home schooling environments. Knowledge Universe Limited (KUL) is a leading global education company serving a wide range of students, from infants and toddlers to primary and post-secondary students. KUL employs proven teaching methods, rigorous curricula and sophisticated technology to serve more than 3,000 physical locations and a large online learning environment.

About Embanet Corporation

Founded in 1995, Embanet is an integrated, full service provider of online program design and development, marketing and enrollment and technology support services for postsecondary educational institutions. The Company provides mission critical services that allow its clients to generate new revenue streams through the launch of online programs and to effectively deliver technology support services to maximize student satisfaction and retention. Embanet's services allow its clients to focus on their core expertise of building their reputation as leading institutions in higher education.

About TCV

Technology Crossover Ventures (TCV), founded in 1995, is a leading provider of growth capital to technology companies, providing funds to later-stage private and public companies. With $4.7 billion in capital under management, TCV has made growth equity and recapitalization investments in over 150 companies leading to 43 initial public offerings and more than 30 strategic sales or mergers. TCV employs a crossover investment model, which combines venture capital with public market investing and enables TCV to continue to invest in its portfolio companies at the IPO and beyond. Representative investments include Altiris, eHarmony, Expedia, Global360, InPhonic, Liquidnet, Netflix, RealNetworks, Redback Networks, Solarc, Solect Technology, Webroot, and Xylan. TCV has ten partners and is headquartered in Palo Alto, California.

About Knowledge Universe Limited

Knowledge Universe Limited (KUL) is a leading global education company serving a wide range of students, from infants and toddlers to primary and post-secondary students. KUL employs proven teaching methods, rigorous curricula and sophisticated technology to serve more than 3,000 physical locations and a large online learning environment.

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Jessie Wong
Blanc & Otus Public Relations
(415) 856-5147
jwong@blancandotus.com