Message Systems Closes Significant Investment Round with NewSpring Ventures

Funding to accelerate company’s product development, international expansion and pursuit of other key initiatives

COLUMBIA, MARYLAND - March 17, 2010 - Message Systems, the premier provider of fast, flexible and holistic message management solutions, announced today the closing of a significant round of funding with NewSpring Ventures to accelerate the company’s product roadmap, international expansion and other key initiatives. This strategic investment builds on Message Systems’ success in 2009, during which the company developed six new products and invested heavily in the business while maintaining profitability and achieving record growth by doubling revenue for the third consecutive year, despite challenging economic conditions.

“Message Systems entered 2010 with a solid war chest, thanks to continued high demand for our Momentum next-generation message management platform,” said George Schlossnagle, CEO of Message Systems. “This strategic round of funding from NewSpring Ventures will enable us to continue to independently pursue our goals, by accelerating the pace of our product innovation and market expansion. NewSpring’s smart, pragmatic approach and technology expertise make the firm an ideal partner for us.”

With this round of funding, Message Systems reasserts its commitment to bringing the marketplace the kind of open, innovative message management solutions that satisfy business, operational and security needs and fulfill its vision for the future of digital messaging. The company also intends to adapt its solutions to specific vertical and geographic markets, expanding its worldwide footprint. Message Systems currently has a presence in five countries outside the US - Singapore, China, Japan, the United Kingdom and Canada. The company has recently closed several multi-million dollar deals with some of the world’s largest brands in the social network, wireless carrier, email service provider (ESP) and hosting company markets.

“Message Systems is an industry leader in digital messaging solutions. It’s a mature company with a solid business model, proven products, a cohesive vision and a seasoned management team - the perfect fit for our investment portfolio,” said Michael DiPiano, general partner at NewSpring Ventures. “The company already has a marquee client base and is perfectly poised to capitalize on the enormous opportunity with enterprises and service providers alike as they optimize their digital communications. We are excited about collaborating with Message Systems to realize this opportunity and secure its position as the global technology standard for digital messaging.”

About Message Systems

Founded in 1997, Message Systems is a worldwide provider of message management solutions and services for marketing and email service providers (MSPs, ESPs), carriers and Internet service providers (ISPs), social networks and large enterprises that need to manage large volumes of business-critical email and other forms of digital messaging. Through a combination of technology, partnerships and intellectual capital, Message Systems offers a family of next generation software solutions and services that address the infrastructure and deliverability needs for organizations ranging from e-commerce companies to the Global 2000. With the most powerful message management platform on the market, Message Systems gets billions of unique messages to the right place at the right time every day. Headquartered in Columbia, Maryland, Message Systems has offices and a network of partners in North America, Europe and Asia Pacific. For more information, go to messagesystems.com or call 877.887.3031

About NewSpring Capital

NewSpring Capital, based in Radnor, Pennsylvania, Short Hills, New Jersey, and Washington, D.C., is a leading provider of private equity capital focused in the Mid-Atlantic region. NewSpring Capital currently has $600 million across three distinct investment strategies through its family of funds. The firm’s portfolio consists of over 40 companies with aggregate revenues in excess of $3 billion. For more information, go to newspringcapital.com.

Media Inquiries:

Atomic PR
735 Market Street, 4th Floor
San Francisco, CA 94103
Email: messagesystems@atomicpr.com
Office: 415.593.1400
Mobile: 925.381.1237