For press inquiries, contact Wynne Ahern of Communications Strategies by phone at (510) 658-8870 or by email: wynne@commstrat.net

Pure Digital Technologies Completes $40 Million Funding Led by AllianceBernstein and Morgan Stanley Principal Investments

Mezzanine round provides capital to launch the world's first line of simple, pocket-sized camcorders designed to change the way people capture and share video

San Francisco, CA — May 1, 2007—Pure Digital Technologies, Inc., maker and marketer of next-generation digital video products and one-time-use digital cameras, today announced the completion of a $40 million round of equity funding co-led by AllianceBernstein L.P. and Morgan Stanley Principal Investments (MSPI). Heights Capital Management, Inc. and existing Pure Digital investors Sequoia Capital, Benchmark Capital, Focus Ventures, Crescendo Ventures, Steamboat Ventures, VantagePoint Venture Partners, and Samsung Ventures also participated in the round. San Francisco-based investment bank Savvian represented Pure Digital in the transaction.

The funding coincides with today's introduction of Flip Video, Pure Digital's breakthrough line of simple, pocket-sized digital camcorders, as well as the launch of the company's national television and on-line branding campaign created by the San Francisco office of DDB Worldwide.

Flip Video is an ultra-convenient line of pocket-sized, affordable camcorders featuring built-in software that makes it easy for everyday consumers to instantly capture, edit, and share video. Available today at retailers nationwide — in time for giving gifts to moms, dads and grads — Flip Video is specifically made for capturing life's spontaneous moments, no matter where and when they happen. Developed with Internet video sharing integrated into the device itself, Flip Video is also the first and only camcorder to upload directly to online video sharing sites, including YouTube.

"Our view is that Pure Digital has strong financials, a smart and viable business model and tremendous demand for its products from retail giants like Target, Best Buy, Costco, CVS/pharmacy, Rite Aid, and Amazon.com," said Jamie Kiggen, Senior Vice President, AllianceBernstein. "We believe that Pure Digital has a unique position in the digital imaging market and welcome the opportunity to be a part of their promising future."

"We are excited to participate in this investment in Pure Digital," said Michael Petrick, Global Head of MSPI. "Pure Digital is a strong company with an excellent management team and great growth potential. The company's Flip Video is well positioned to allow consumers to capture and share video as part of their everyday lives."

About Pure Digital Technologies, Inc.

Pure Digital Technologies is a pioneer in developing simple, affordable digital imaging solutions for the mass market. Its award-winning product portfolio includes the world's only one-time-use digital cameras and camcorders as well as the first Point & Shoot Camcorder which has been among the bestselling camcorders at many top retailers. To complement its next generation of simple and affordable consumer devices, the company partners with leading retailers to distribute its processing technology. The Pure Digital Imaging Platform is installed in over 9,400 one-hour processing locations nationwide, including CVS/pharmacy, RiteAid Pharmacy, Ritz/Wolf Camera Centers, Duane Reade, and Longs Drugs.

About AllianceBernstein

AllianceBernstein L.P. ("AllianceBernstein") is a leading global investment management firm providing investment management services for many of the largest U.S. public and private employee benefit plans, foundations, public employee retirement funds, pension funds, endowments, banks, insurance companies and high-net-worth individuals worldwide. AllianceBernstein is also one of the largest mutual fund sponsors, with a diverse family of globally distributed mutual fund portfolios. Through its subsidiary, Sanford C. Bernstein & Co., LLC, AllianceBernstein provides in-depth research, portfolio strategy and trade execution to the institutional investment community.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management, wealth management and credit services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 31 countries. Morgan Stanley Principal Investments ("MSPI") invests Morgan Stanley's capital in attractive return investments that leverage Morgan Stanley's proprietary relationship network. Recent MSPI investments include Moelnlycke Care Group AB, Grifols S.A. and U.S. Oncology. For further information about Morgan Stanley, please visit www.morganstanley.com.

Media Contacts:
Wynne Ahern
CommStrat
wynne@commstrat.net
510-658-8870

John Meyers
AllianceBernstein
John.Meyers@alliancebernstein.com
212-969-2301

Jennifer Sala
Morgan Stanley
Jennifer.Sala@morganstanley.com
212-762-6885