Dr ylab Ne ws f or in v est ors & friends · Ma y 2017 W elcome to our first newsletter of 2017! It's been a while since the last one, and a lot has happened. W e promise to k eep them coming e v ery two months hereafter , and permit ourselv es to mak e this one r ather long. The big news is the beginnings of our launch in the American mark et, but there are also interesting updates on sales, de v elopment, mentors and ( of course ) the in v estment round that closed in January . Ne w c apital: The in v estment round was successful. W e r aised 2.13 MNOK to match the 2.05 MNOK loan from Inno vation Norwa y . Including the de v elopment agreement with Filmlance International, the total new capital is 5 MNOK, partly tied to the successful completion of milestones. All formalities associated with this process are now finalized. Ne w o w ners: W e would especially lik e to warmly welcome our new owners to the Drylab family: Unni Jacobsen, T orstein Jahr , Suzanne Bolstad, Eivind Bergene, T urid Brun, Vigdis T rondsen, L ea Blindheim, Kristine 34 meetings meetings NY · SF NY · SF LA · L LA · L V V Academ y of Motion Picture Arts and Sciences · Alesha & Jamie Metzger · Amazon A WS · Apple · Caitlin Burns, PGA · Carlos Melcer · Chimne y L .A. · Dado V alentic · Da v e Stump · DIT WIT · ERA NY C · Facebook · Fancy Film · FilmLight · Geo Labelle · Google · IBM · Inno vation Norwa y (NY C) · Inno vation Norwa y (SF) · International Cinematogr aphers Guild · NBC · L ocal 871 · Netflix · P omfort · Radiant Images · Screening Room · Signiant · Moods of Norwa y · T apad · T eam Downe y


Holmsen, T orstein Hansen, and Jostein Aanensen. W e look forward to working with y ou! Sales: Return customer r ate is now 80%, pro ving value and willingness to pa y . Film Factory Montreal is our first customer in Canada. Lumiere Numeriques ha v e started using us in F r ance. W e also ha v e new customers in Norwa y , and high-profile users such as Gareth Un win, producer of Oscar- winning The King's Speech . Re v enue for the first four months is 200 kNOK, compared to 339 kNOK for all of 2016. W e are working on a partnership to safeguard sales in Norwa y while beginning to focus more on the US. Ne w t eam members: W e 'v e e xtended our organization with two permanent de v elopers based in Łódź, the film capital of P oland. T wo highly skilled interns from the Univ ersity of Oslo 's Entrepreneurship Progr am, will be working on mark et research until mid-June (starting in March), preparing for the US launch. Also, two computer science students are working as part-time interns during spring, on machine learning and analysis research, as well as inno vativ e architectures based on the Swift language. W e hope our interns will consider sticking around! Ne w ment or: W e are honored to ha v e Caitlin Burns joining us as a mentor . She 's an accomplished producer based in New Y ork, an activ e member of the Producers Guild of America, and the collabor ation has already yielded good results, including valuable contacts for our visit in L os Angeles. Oscar- winning VFX supervisor Da v e Stump joined us earlier . Ne w Y ork, St. Louis, San Fr ancisc o and Los Angeles: P ontus and Audun did a tour of the US in F ebruary and March, meeting users, partners and potential customers. The trip was v ery successful, with se v er al high points, including meetings with Netflix, the Academ y of Motion Picture Arts and Sciences, the International Cinematogr aphers Guild, L ocal 871 (the script supervisors' union), one of the world's leading DIT s, and Apple. See the separ ate attachment for a more detailed summary . NAB: Andreas and Audun tr a v elled to the National Association of Broadcasters con v ention (NAB) in Las V egas for three hectic da ys in April. NAB gathers 100,000 participants from film and TV . It's a v ery efficient wa y of meeting people in the business, and getting an updated picture of the business landscape. The most e x citing meeting was with PIX System, one of our most important competitors. It was interesting to note that the y regarded the indie mark et as bigger than their own. Andreas was able to secure us an in vitation to the DIT -WIT party , with some of the world's leading DIT s in attendance. It was a great place for informal feedback on Drylab Viewer . The pattern was the same as for other users: Initial polite interest turns to real enthusiasm the moment someone is able to personally try Drylab Viewer! W e also met with P omfort and Apple about our on- going collabor ations; ARRI and T er adek/


P ar alinx about camer a integr ation; Amazon, Google and IBM about cloud computing. WWD C and Silic on V alle y: W e were v ery pleasantly surprised to be in vited b y Apple to their W orld Wide De v elopers Conference in San Jose in June, despite not ha ving applied. It's a valuable chance to learn and mak e new connections. W e ’re also setting aside time to meet other potential partners. Cine Gear: W e ha v e decided not to attend the Cine Gear e xpo in L .A. this y ear , since feedback from man y users about the show were mix ed, and our planned beta v ersion of 3.0 is slightly dela y ed. De v elopment and launch: De v elopment is around one month behind our original schedule. W e e xpect the dela y to decrease, with new de v elopers on board. The launch of Drylab 3.0 will tak e place at the International Broadcasters Con v ention in Amsterdam in September , and we are working hard to get solid feedback from pilot users before then. Annual Gener al Meeting: Drylab 's A GM will be held on June 16th at 15:00. An in vitation will be distributed to all owners well in advance. W e hope to see y ou there! As y ou c an see it has been a hectic spring that has giv en us a lot o f c onfirmation about our product. W e are no w w orking eagerly and hard t o w ards the US launch with Dr ylab 3.0, while k eeping momentum in Europe with our e xisting s y st em. [ Drylab has kindly allowed this newsletter to be redone in HTML/CSS and con v erted to PDF with Prince . Na vngen helped anon ymize names in the process.]