Betawave Announces $3 Million Private Placement Financing

Betawave Corporation (OTC: BWAVD) (“Betawave” or the “Company”), the online media company that partners with premium publishers to deliver highly attentive audiences to brand marketers, completed the initial closing of an anticipated $3 million private placement financing on March 26, 2010. Under the terms of the financing, Betawave sold to certain accredited investors subordinated secured convertible promissory notes in the aggregate principal amount of approximately $2.4 million and warrants to purchase common stock. Under the terms of the financing, Betawave may complete subsequent closings for up to approximately $600,000 until May 10, 2010.

In addition, the Company has also completed a 5-for-1 reverse stock split of its common stock. Under the terms of the reverse stock split, every 5 then outstanding shares of common stock held by a stockholder on April 9, 2010 were combined into 1 outstanding share of common stock. No fractional shares were issued as a result of the reverse stock split; any fractional share resulting from the reverse stock split was rounded upward to the nearest whole share. Stockholders owning shares via a broker or other nominee will have their positions automatically adjusted and will not be required to take any action in connection with the reverse stock split. The new CUSIP number for the Company’s common stock is 08660F-209.

In addition, on April 1, 2010, the Company filed a Form 15 with the Securities and Exchange Commission (the “SEC”) to notify the SEC of the suspension of its reporting obligations under the Securities Exchange Act of 1934. The Company is eligible to voluntarily suspend its reporting obligations because it has fewer than 300 shareholders of record as of January 1, 2010. As a result, the Company’s obligation to file certain reports with the SEC, including Forms 10-K, Form 10-Q and Form 8-K, has been suspended. The Company expects to realize significant reductions in expenses as a result of the alleviation of these SEC reporting requirements.

As a result of the suspension of these SEC reporting requirements, the Company’s common stock ceased trading on the Over-the-Counter Bulletin Board and began trading on the Pink Sheets. The Pink Sheets system is a centralized electronic quotation service operated by Pink OTC Markets with a website at www.pinkotc.com. While the Company anticipates that its common stock will continue to be quoted on the Pink Sheets, the continuation of such quotation for any period of time cannot be assured.

As a result of the reverse stock split, Betawave’s common stock began trading under a new symbol, OTC: BWAVD, on Wednesday April 14, 2010 and will continue to do so for a period of 20 business days, after which, the D will be dropped. Trading on the pink sheets thereafter would continue under the prior symbol BWAV.

Stockholders may exchange their current stock certificates for stock certificates reflecting the new CUSIP number and their new share amounts, but are not required to do so. Stockholders interested in exchanging their stock certificates should contact the Company’s transfer agent at: Continental Stock Transfer & Trust Company, 17 Battery Place, New York, NY 10004. Telephone: 212.509.4000; Fax: 212.509.5150, e-mail: cstmail@continentalstock.com.

Betawave Corporation (www.betawave.com) is an online media company with a premium portfolio of publishers that creates unique brand experiences at scale. Betawave has assembled some of the leading gaming, social media, entertainment, lifestyle, and parenting websites to deliver highly attentive audiences for brand marketers totaling over 39 million U.S. unique users. Since launching two years ago, Betawave has grown to be #1 in reach to Kids, #1 in time spent with Moms and #1 in reach to Parents (when ranked against the properties in the comScore Entertainment-Kids, Lifestyles and Parenting categories). Betawave is headquartered in San Francisco with sales offices in New York, Los Angeles and Chicago.

(*comScore, March 2010)

Betawave (CE) (USOTC:BWAV)
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