Follow-on Investment

Brainspark PLC 13 June 2000 BRAINSPARK plc PETSPARK.COM RECEIVES FOLLOW-ON INVESTMENT FROM CROSS ATLANTIC TECHNOLOGY FUND (XATF) Brainspark, the incubator business focused on germinating and developing Internet related businesses, today announced a further round of follow-on funding for Petspark.com, one of its incubated companies. Petspark.com has raised a follow-on investment of $2.5 million from Cross Atlantic Technology Fund for the continuing development of its online pet- care business. Cross Atlantic Technology Fund, which is providing the investment, is a venture capital fund focused on investing in the US, Ireland and the UK, establishing a bridge between North American and European markets. The fund is a subsidiary of the US based Cross Atlantic Capital Partners. This second round of funding follows the $7 million investment last month by Pets.com, the leading pet portal in the US. Petspark.com will use these funds to continue to expand its content offering in its aim to be number one in the UK online petcare market and to build its brand throughout Europe. Petspark.com, who were last week the subject of a BBC documentary about start- up internet ventures, offers pet owners a specialized range of pet-related services including a broad selection of pet food and accessories, information and expert advice from veterinarians and animal behaviourists. In addition, the web site features an extensive range of new health alternative remedies and also an area for children to play fun, interactive and educational games in a safe environment. The UK pet industry is worth £2 billion and is the largest in Europe. There are over 52 million pets in the UK, with over half of all households owning a pet. The UK offers great opportunities for online pet retailers since the bricks and mortar pet retailers are very fragmented, with no one chain owning more than 11% of the market. Brainspark has invested in twelve companies, three of which have successfully completed external funding rounds. Stewart Dodd, Brainspark's Chief Executive, said: 'We have worked on a number of successful projects with XATF who have a superb understanding of the industry. Our partnership with XATF is a good example of how we can create value-added benefits at each stage of a company's life-cycle. This round of funding, which follows Pets.com's recent investment is a testament to the strength of Petspark.com's management team and its sound business strategy. Petspark.com is ideally placed to establish itself as Europe's leading pets portal.' Nicholas Barnard, Petspark.com's Chief Executive said: 'We are delighted to be working with XATF, who have an enormous wealth of experience in the technology sector. The funds raised will allow us to develop our mould breaking multi-channel proposition and to continue to build our brand image and improve our online offering.' Enquiries: Brainspark (020 7843 6600) Petspark Ltd (020 7843 6800) Stewart Dodd Nicholas Barnard David Hart Adrian Marrullier Citigate Dewe Rogerson (020 7638 9571) Martin Jackson / Charles Vivian