InfoNow Press Release

InfoNow Press Release

INFONOW SECURES $5M SERIES B FINANCING TO BOLSTER ITS LEADERSHIP IN CHANNEL PERFORMANCE OPTIMIZATION

Investment Accelerates InfoNow’s Global Market Growth and Solution Expansion

Denver July 06, 2009 – InfoNow Corporation, the leading provider of software as a service (SaaS)-based solutions for Channel Performance Optimization, today announced it closed a $5 million Series B Preferred Stock financing. Vedanta Capital led the Series B financing, with existing investors Sequel Venture Partners and Sevin Rosen Funds both participating and increasing their investment in the Company.

“This financing is a great testament to our market leadership and the growth and customer adoption we are achieving with our on-demand Channel Performance Optimization SaaS platform,” said Mark Geene, CEO, InfoNow. “It further validates the urgent market need for channel optimization to reduce costs and grow revenue for businesses that rely on complex sales channels.”

The infusion of new capital will help InfoNow extend its product and market leadership in delivering real-time channel visibility, agility and control, which are key to helping finance, sales, marketing and channel operations executives achieve their objectives. Building on its recent release of InfoNow 2.0, which included industry leading solutions for Channel Incentives Optimization, Pricing Compliance, Channel Inventory Optimization and the InfoNow Global Trading Partner Registry, InfoNow will use the funding to continue to accelerate global sales and marketing activities, as well as to extend its investment in product development.

“Increasingly, companies are looking to their indirect sales channels to help open new markets, accelerate time to value, and provide a competitive advantage in the marketplace,” said Tiffani Bova, Research VP, Gartner. “As a result, especially in today’s challenging economic environment, successful enterprises are looking for solutions that deliver real-time channel visibility and actionable insights that help identify the strategies that will optimize channel performance.”

InfoNow pioneered Channel Performance Optimization, and is the only complete solution provider in the market today. Its on-demand SaaS offerings help global technology manufacturers achieve sustainable competitive advantage and boost EPS by growing channel revenues while reducing costs. Based on its patented automated matching engine, InfoNow’s solutions deliver real-time, accurate and complete channel POS and inventory data as well as actionable insight into channel performance.

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“We see a substantial growth opportunity for InfoNow,” said Michael Patterson, General Partner, of Vedanta. “We believe the company’s patented technologies that give customers greater strategic influence and control over channel activities with partners are filling a critical need in the market and providing considerable business value.”

Since securing the Series A financing in October 2007, InfoNow has significantly added to its SaaS technology infrastructure and solution capabilities, accelerated its industry leadership over smaller competitors who rely on manual or low-technology approaches, and grown in revenue and customer acquisition despite the current recessionary market conditions.

In connection with the Series B financing, Michael Patterson from Vedanta Capital joined the Company’s Board of Directors.

About Sequel Venture Partners
Sequel Venture Partners is a Boulder, Colorado-based venture capital firm specializing in early-stage funding for emerging technology businesses located primarily in the Rocky Mountain region. Managing over $400 million in capital, Sequel focuses its investments in the areas of information technology, communications technology, life sciences and clean technology. For more information, please visit www.sequelvc.com.

About Sevin Rosen Funds
Sevin Rosen Funds is a top-tier venture capital firm with a record of funding successful companies since 1981. The SRF partnership has consistently made early-stage investments in pioneering technologies and companies with the potential to create new markets. The partners' broad range of venture and operating experiences in successful technology companies translates into a sustained commitment and contribution to the development of the ventures funded. The firm has offices in Dallas, Palo Alto and Austin. For more information, please visit www.srfunds.com.

About Vedanta Capital
Vedanta Capital is an experienced team of investment and industry professionals looking to help build the global leaders of tomorrow by partnering with a select group of growth stage companies in the information and communications technologies (ICT), life sciences, and global commerce industries.
Our principals have been involved in over 300 venture capital investment transactions, spanning over 25 years, through several economic cycles, at multiple stages of development and in multiple industries. Vedanta has offices in New York and Menlo Park, CA. For more information, please visit www.vedacap.com.

About InfoNow
InfoNow’s on-demand Channel Performance Optimization solutions provide global Fortune 1000 high-technology and component manufacturers with visibility into every channel relationship and interaction in real-time, allowing them to gain the insight necessary to find the best mix of channel actions that grow revenue and reduce cost in order to achieve sustainable competitive advantage. Combining industry best practices with patented technologies, InfoNow’s SaaS-based solutions ensure timely, accurate and complete channel insights to optimize business processes. InfoNow processes over 120 million POS and inventory transactions per year delivering channel visibility, agility, and control. For more information, go to www.infonow.com.

InfoNow is not a reporting company under the Securities Exchange Act of 1934. Accordingly, the Company is not required to disclose information regarding its financial performance, or other confidential information, nor does it intend to make any such disclosures in the future. Investors and prospective investors should not expect that any financial or other Company information subsequent to the date of this press release will be made publicly available. Lack of publicly available information going forward could negatively impact our future share price and market liquidity.