January 12, 2010 09:00 ET

Montavo Signs Multi-Million Dollar Financing Agreement

BELLEVUE, WASHINGTON--(Marketwire - Jan. 12, 2010) - Montavo, Inc. (OTCBB:MTVO) is pleased to announce that the company has secured a multi-million dollar equity line of credit with Dutchess Opportunity Fund, II, LP that can, at the Company's sole and complete discretion, be accessed to assist in funding sales, marketing and business development efforts as well as the continued software development and commercial launch of the Montavo Mobile Advertising Platform (mMAP).

The term of the equity line of credit (up to $20 million aggregate credit value) is 60 months and stipulates that Montavo, at its sole discretion, may sell shares of common stock that is calculated using an agreed-upon formula based on near-term historical market share price over a specified period of time, with each Put calculated with a floor price set by Montavo.

In accordance with SEC regulations, as well as the terms of the equity line of credit established with Duchess Opportunity Fund, Montavo may draw on the line from time to time, at its sole option when it deems appropriate, following an effective registration statement that covers the resale of the shares, and other customary conditions as required and necessary by law and best business practice.

"With significant development efforts for mMAP underway, we're pleased to add Duchess and this Montavo controlled equity line of credit to our toolkit of capital instruments," said Brook Lang, CEO of Montavo. "Ramping up our sales, marketing and business development efforts is the next critical step in our commercialization effort, and appropriate access to several different types of capital options strengthens our ability to move the company and our patent-pending technology forward. This facility allows the Company to access capital with the ease and flexibility it needs while continuing to focus on growth."

Douglas Leighton, Managing Director of Dutchess stated "we are pleased to be a financial partner to Montavo and look forward to assisting the company with its funding needs through the Equity Line. We continue to commit capital to small innovative growth companies such as Montavo. This line allows management total control over the timing of each Put."

About Montavo, Inc.

Montavo, Inc.'s mMAP is a mobile marketing platform that integrates client side mobile device software with a mobile advertising network solution and ad distribution ecosystem. Montavo offers its solution to consumer focused advertisers (manufacturers and retailers from national brands to SMBs), wireless carriers, mobile handset manufacturers and mobile OS providers, personal navigation device (PND) manufacturers, automotive manufacturers, and other tier-one suppliers as either a white-labeled mobile application or as the Montavo branded mDealFinder.

Montavo's proprietary, patent-pending mobile advertising platform has been designed from the ground up to deliver the most relevant, location-based deals on products or services to consumers while providing rich real-time data and analytics on mobile ad campaign performance and ROI to advertisers that primarily sell their products in a brick and mortar setting.

About Dutchess Capital

Dutchess Capital is an investment manager which provides creative financing for promising, growth-stage companies. Founded in 2000, funds managed by Dutchess have made over $200 million in direct investments in companies throughout North America, Europe and Asia.

For almost a decade, Dutchess has been a global leader in Equity Line of Credit investments (ELOCs) and has transacted in excess of $1.4 billion in such financings. The ELOC is a flexible financing structure by which publicly traded companies can raise capital quickly, efficiently and with less dilution than most traditional offerings.

For more information, please visit: www.dutchessopportunity.com, a fund managed by www.dutchesscapital.com.

Forward Looking Statements:

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. Montavo's actual results could differ materially from those anticipated in the forward-looking statements. Montavo refers you to the cautionary statements and risk factors set forth in the documents it files with the Securities and Exchange Commission (http://www.sec.gov). The Company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

For more information on Montavo, please refer to our website at http://www.montavo.com.