DIGITAL RAILROAD RAISES $5.2 MILLION FROM MORGENTHALER AND VENROCK


New York, New York – Digital Railroad, Inc. (DRR.NET), the leading provider of Web-based application services for the professional photography industry, announced that it has secured $5.2 million in venture capital from Morgenthaler Ventures (www.morgenthaler.com) and Venrock Associates (www.venrock.com).

Digital Railroad will use the “Series A” funding to expand its online photo management, distribution and archiving platform. The company has developed a unique suite of Web-based services that enable professional photographers and photo agencies to manage, market, and sell their images with greater efficiency than with existing solutions.

The founder and chief executive officer of Digital Railroad, Evan Nisselson, and his team have been pivotal figures in the photography industry as it transitioned from film to digital images.

Nisselson said, “We are pleased to have successfully completed this financing with two outstanding investment firms that can help our company expand and improve the Digital Railroad platform. Attracting Venrock and Morgenthaler as partners confirms the value we bring to the industry.”

“Digital Railroad is the clear leader in providing professional photographers a way to control and streamline key aspects of their workflow, from production, sales, syndication to archiving,” said Ken Gullicksen, general partner at Morgenthaler Ventures. “We see no comparable service in the market today.”

Said Michael Brooks, general partner at Venrock Associates, “Evan has assembled an outstanding team that understands the needs of the professional photographer in creating personal, branded online photo-archives to better manage and market their work throughout the world.”

About Venrock
Venrock Associates, originally founded as the venture capital investing arm of the Rockefeller Family, today continues a six-decade tradition of working in partnership with talented entrepreneurial teams to finance and build enduring companies.  Venrock's activities are focused on early-stage companies in the information technology and life sciences industries, with investments in such companies as Intel, Apple Computer, Stratacom, CheckPoint Software, DoubleClick and Media Metrix in the IT sector. For more information, visit Venrock's website at www.venrock.com.

About Morgenthaler
Morgenthaler Ventures is a leading venture capital firm that has supported entrepreneurs as a trusted partner and expert advisor for over 36 years. It focuses its energies on cultivating world-class companies in two investment areas: Information technology and life sciences. Morgenthaler currently has $2 billion under management. In addition to Digital Railroad, Morgenthaler has made investments in other Internet services companies, including NexTag, SNOCAP, Orb Networks, and imeem. Visit www.morgenthaler.com for more information.

About Digital Railroad
Digital Railroad is an application services company that is dedicated to solving the critical technical problems facing the creators and buyers of digital imagery. Digital Railroad's unique, comprehensive suite of online services transforms the way photographers manage, market, and sell their images to photo buyers worldwide. More information is available at DRR.NET.