Kobalt Valuation

Spark Ventures PLC
05 February 2008


For Immediate Release                                            5 February 2008  

                                
                               SPARK Ventures plc
                                       
                        SPARK increases Kobalt valuation

LONDON, U.K. (5 February 2008) - SPARK Ventures plc (SPARK) is pleased to
announce that Kobalt Music Group Ltd (Kobalt), a leading independent music
publisher and one of its largest portfolio companies, has signed an agreement
with Balderton Capital whereby Balderton will invest new equity in Kobalt. This
transaction will result in a 60% uplift in the valuation of SPARK's investment
in Kobalt, increasing from £4.4m to £7.0m. The agreement will also see Tim
Bunting, partner at Balderton Capital and an ex partner of Goldman Sachs, join
the Board of Kobalt.

Kobalt was established in 2001 to provide a modern, efficient and transparent
music publishing model that would better service the needs of the songwriters
and copyright holders by leveraging technology.

SPARK originally provided significant seed investment to Kobalt in 2001. Since
then, Kobalt has grown rapidly with revenues growing on average at over 100% per
annum over the last three years. Its roster of writers has composed songs for
artists such as Leona Lewis, Madonna, Natasha Bedingfield, Eminem, Robbie
Williams, Gwen Stefani, Pink and Avril Lavigne among others. During 2007, Kobalt
was both a top U.K. and U.S. independent publisher with a U.K. ranking at No. 5
publishing market share (source: Music Week) and a ranking as No. 6 in
publishers market share for U.S. Airplay charts (source: Billboard Magazine).

Tom Teichman, Chairman of SPARK and Kobalt said: 'We are delighted to have an
investor of Balderton's quality on board with Kobalt and would like to welcome
Tim Bunting to Kobalt's Board. I am confident that this new relationship will
add significant value to Kobalt's winning formula.'

Willard Ahdritz, Founder and CEO of Kobalt added: 'We're excited to work with
Tim Bunting and Balderton Capital. This new capital injection will bolster our
plans to further expand internationally, as well as help fund sizeable pipeline
advances and the roll out of new services for music rights holders.'

Tim Bunting, Partner at Balderton Capital, added: 'We are proud to join the
Kobalt team as it further rewards and empowers the creative talent in the music
industry. Kobalt is working with performers, copyright owners and songwriters to
deliver to consumers and creators.'

The investment is subject to shareholder approval at the forthcoming Kobalt EGM.

Close Brothers advised Kobalt on the transaction.


Enquiries:


SPARK Ventures plc

Andrew Carruthers / Thomas Teichman 020 7851 7777


Buchanan Communications

Isabel Podda 020 7466 5000


Collins Stewart Europe Limited - Nominated adviser

Seema Paterson 020 7523 8321


Kobalt

Rebekah Alperin [phone]


About SPARK Ventures

SPARK Ventures is the leading quoted early-stage venture capital company in
Europe managing £225 million on behalf of major institutional investors, leading
UK universities, and three quoted venture capital trusts.

SPARK invests in entrepreneurs to create dynamic businesses in the technology,
media, telecoms and healthcare & life sciences sectors. As well as capital, it
brings a wealth of experience of developing high growth companies from early
stage through to IPO or trade sale, adding value to its investments through
active support and strategic direction.

SPARK's focus is on building great companies from small beginnings: its
experience blends ambition with the strategic, financial and commercial skills
that enable it to maximise returns, both for investors and for portfolio
companies.

The SPARK Ventures team has been responsible for many successful exits including
Mergermarket, Lastminute.com, Nomad, Footfall, Pricerunner, Elata, Glycart, OHM
and Avidex amongst others.


www.SPARKventures.com


About Kobalt

Kobalt is a leading independent music publisher offering global copyright
administration, creative and synch/licensing services, and advances to writers,
publishers and other publishing rights holders. With offices in London, New
York, Nashville, Los Angeles, Berlin and Stockholm, as well as agents in over 20
major territories, Kobalt administers more than 100,000 copyrights worldwide on
behalf of over 700 clients. Clients include Gwen Stefani, Moby, Barry Manilow,
Dr. Luke (producer of Avril Lavigne, Kelly Clarkson, Pink), Ryan 'Alias' Tedder
(producer of Leona Lewis, Natasha Bedingfield) and Max Martin (producer of
Sugababes, Britney Spears), Desmond Child, 8 Mile Style, Bridgeport Music,
Shelly Peiken, The Hives, Editors, Hilary Duff, Richard Ashcroft, Nine Inch
Nails amongst others.


www.kobaltmusic.com



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