MindEdge, Inc. Announces Major Financing Led By Orchid Partners, LP

December 23, 2004

WOBURN, MA, December 14, 2004 – MindEdge, Inc., the leading provider of online courses to the higher education market, today announced the closing of a significant investment round in the company led by Orchid Partners, LP of Boston, MA. Orchid General Partner, Todd Krasnow, previously with Staples and the CEO and founder of Zoots will join the MindEdge Board.

“We are very excited about this development. The capital will enable MindEdge to achieve its aggressive goals for growth and success. More and more colleges and universities are seeing the benefits of outsourcing their online course content needs. College presidents understand that online programs can boost enrollments, extend reach and, if done right, provide a quality learning experience,” said Paul Robershotte, President and Chief Executive Officer, MindEdge Higher Education Online.

MindEdge’s unique library of complete, turnkey course solutions currently supports Bachelor, Associate, advanced degree and certificate programs in the fields of Business & Management, Health Sciences, Information Technology, and Arts & Sciences. MindEdge delivers its customizable course content through each Partner Institution’s web site and provides accompanying services including instructor and student orientation to ensure high quality implementation. Colleges and universities license courses from MindEdge and effectively “private label” the content; MindEdge is invisible to the institutions’ students. In addition, the courses are fully customizable, either by the institution or by MindEdge in collaboration with faculty teaching the courses. MindEdge is continuously expanding its course content library and works closely with partner institutions on new course development needs.

“MindEdge possesses a singular position in a very large and growing market space,” said Todd Krasnow, General Partner, Orchid Partners. “We seek investment opportunities which have significant growth potential, and MindEdge fits that profile very well. The convenience and effectiveness of online learning has been proven. Colleges continue to realize that online programs provide new revenue opportunities to extend reach and access for students. However, colleges also realize that developing online programs can be prohibitively expensive. MindEdge provides the best, complete, high quality outsource solution in the marketplace.”

About MindEdge
Founded in 1998, MindEdge is the leading provider of online courses and course management solutions to higher education institutions. Founded by educators from Harvard University and MIT in 1998 and managed by experienced higher education and technology professionals, the company is based in Woburn, MA. For more information: http://www.mindedge.com.

About Orchid Partners
Founded by proven entrepreneurs, Orchid Partners invests in early stage companies and provides active management support to make investments successful. Orchid’s team has proven company-building experience and seeks investments in companies with talented and driven management in growth markets with significant opportunities for success. The firm is based in Boston, MA. For more information: www.orchidpartners.co .

Contact: Brian Kelley
MindEdge, Higher Education Online