OmniCapital

OMNICAPITAL INVESTS IN NARROWSTEP, INTERNET TV COMPANY

Westfield, NJ, March 6 /OmniCapital Group LLC today announced that it has invested in Narrowstep(TM) Inc, the TV on the Internet company.  The investment round totaled $7.1 million.  Other investors in the financing included Granahan McCourt Capital, which is owned by David C. McCourt, the Company's interim CEO, and Roger L. Werner, a director of the Company and former COO of ESPN.

Narrowstep is the leading provider of IP-delivered video content based on its award-winning TelVOS(TM) platform -- the most comprehensive commercial video and audio management system on the market. Narrowstep brings the best of TV and the best of the web to help channel owners monetize their content through a suite of tools that allows for a long-form TV-like viewing experience, integrating social networking and e-commerce opportunities. Narrowstep customers range from sports organizations to government agencies, broadcasters and telecommunication providers in Europe, the United States and Asia .  The Internet television market is forecasted by some analysts to grow to $10 billion in revenue from subscription fees and advertising by 2010. 

  Arun Netravali , Managing General Partner of OmniCapital, said, “Narrowstep is a leading player in the rapidly-growing Internet TV market and is led by a top industry executive in David McCourt with decades of experience in content production and distribution.  We are very impressed with Narrowstep’s technology, business model and the team.  In the future we expect to see more advertising dollars seeking out well-targeted television channels distributed online.  Narrowstep is perfectly positioned to take advantage of this trend.”

  David McCourt, Narrowstep’s CEO  and a pioneer in the media industry, said, “I am pleased to welcome OmniCapital as an investor in Narrowstep.  Omni has a wealth of experience in video technology and a broad network of contacts in the industry.  I hope to draw upon these resources to accelerate the growth of Narrowstep.”

  Narrowstep expects to end the year with over 500 channels. Recent launches include ITV, the UK 's top commercial broadcaster, Martial Arts TV, Bebin TV, London TV, Cycling.tv, as well as the Torino 2006 Paralympic Winter Games. For a full list of channels as well as live broadcast events, please visit http://www.narrowstep.com/.

  About Narrowstep(TM) Inc

Narrowstep(TM) Inc (OTC: NRWS) (BULLETIN BOARD: NRWS) is a leading provider of Internet-based video content delivery (TV on IP). Narrowstep's product and service offerings enable customers to distribute channels of video-based content and provide related services over the Internet. The Narrowstep system, TelVOS(TM), enables comprehensive delivery of video content and television-like programming to mobile, wireless, Internet, broadband and broadcast services to clients throughout the world. To learn more, visit http://www.narrowstep.com/.

  About OmniCapital

OmniCapital Group, with offices in New Jersey and Boston , is an early-growth stage venture capital investor focusing on information technology and with special interest in media technology, security, broadband, home networking, convergence and vertical applications.  The firm takes a hands-on, active investing approach.  Arun Netravali , Managing Partner of the firm, is a pioneer in digital video and co-author of several related books: Digital Video, An introduction to MPEG-2 (2003), Digital Pictures: Representation, Compression and Standards (1995), and Visual Communication Systems (1989).   Visit http://www.omnivc.com