SOURCE: MediaNet Group Technologies, Inc.

October 08, 2007 08:41 ET

MediaNet Group Technologies Announces Strengthening of Leadership and Improvement in Capital Structure

MARGATE, FL--(Marketwire - October 8, 2007) - MediaNet Group Technologies, Inc. (OTCBB: MEDG), a leading developer of private branded web malls and online affinity programs, announced today the completion of initiatives which have resulted in the strengthening of its leadership and a significant improvement in its capital structure. This includes the appointment of two new members to its Board of Directors and the repurchase of approximately 10% of the Company's outstanding common shares.

"The successful completion of the initiatives announced today serve to significantly enhance the potential of MediaNet Group Technologies from both operational and investment perspectives," said Martin Berns, Chief Executive Office of MediaNet Group Technologies. "The decision to repurchase shares not only reduced shareholder dilution but also reflects our confidence in the Company's strategy, now aided by these two important additions to our Board of Directors. We have enhanced our position to capitalize on our continuing growth opportunities for web mall development and online commerce. Moreover, we believe these actions are aligned with our commitment to the creation of long-term shareholder value."

In a move to enhance its capital structure, on October 5, 2007, the Company consummated the private purchase from a single individual of 1,360,834 MediaNet Group Technologies shares. This stock represented approximately 10% of the outstanding common shares of the Company as of October 4, 2007. The shares were unregistered and were purchased at a price of $0.01 per share. Repurchased shares will be held as treasury shares and, at the Company's discretion, will either be retired or used for general corporate purposes. After the share repurchase, MediaNet Group Technologies has approximately 10.8 million shares outstanding, excluding treasury shares.

To strengthen the management of MediaNet Group Technologies, the Company has appointed two new members to its Board of Directors, effective November 5, 2007. The new directors, Bruce L. Hollander and Brent Gephart, collectively possess substantial executive level middle market company experience and knowledge of best practices pertaining to MediaNet Group Technologies' web mall and online retailing business model.

Prior to being elected to the Board of Directors of MediaNet Group Technologies, Messrs. Hollander and Gephart independently made direct investments in the Company, and therefore have a vested interest in its success.

Bruce L. Hollander is the retired Chairman of the Board, Chief Executive Officer and President of BioLok International, which was a publicly traded company until its acquisition by a private equity firm in 2006. Mr. Hollander held the positions of CEO and President of BioLok since 1996, and was Chairman since 1998. Prior thereto, Mr. Hollander held executive management positions in industry and as a consultant, including Kohlberg, Kravis, Roberts & Co., since 1982. Previously, he was an executive with Incom International, Rockwell International and General Electric. Mr. Hollander received a BSIE from the Pratt Institute, a MSEM from Union College (GE - Co-op.) and is an APICS certified fellow.

Brent Gephart is presently Chief Executive Officer and President of Card Processing Consultants, Inc., a consultancy serving Fortune 100 banks and other premier financial institutions, including Fiserv, merchant processing companies and Fortune 5000 companies. Card Processing Consultants is a registered MSR/ISO for Royal Bank of Scotland. Prior to his present position, Mr. Gephart served as Chief Operating Officer and Executive Vice President Sales and Marketing for Financial Services for Innuity, Inc., where he developed strategic partnerships with stored value debit card issuers and developed the companies own private label stored value issuing program. Mr. Gephart developed offshore banking and acquiring relationships for U.S. merchants pursuing offshore incorporations (IBCs) in the E.U. and L.A.C.R. Mr. Gephart also served as Executive Vice President U.S. Corporate Strategy and Alternative Distribution for Moneris Solutions, Inc., and was previously Director of Marketing and Director of Corporate Strategy for Chase Merchant Services, the acquiring division of J.P. Morgan Chase. Additionally, Mr. Gephart attended Visa Bankcard Management School at Harvard University.

Lawrence Lipman has resigned as a director of the Company effective October 2, 2007. With the addition of Messrs. Hollander and Gephart, the Company now has 6 members of its Board of Directors.

About MediaNet Group Technologies, Inc.:

MediaNet Group Technologies, Inc. (OTCBB: MEDG) encompasses an integrated group of operating divisions that revolve around the many aspects of technology, including branded rewards programs, web mall programs, and online media intellectual properties. Additional information on MediaNet Group Technologies can be found on the Internet at www.medianetgroup.com.

MediaNet Group Technologies has developed unique proprietary platforms, software and solutions for every size business. The Company offers extremely affordable, simple, immediate implementation, delivered as feature rich turnkey rewards and loyalty enterprise solutions for corporations interested in expanding their web presence and enhancing customer relations -- turning operational costs into profit centers.

BSP Rewards, Inc., a wholly owned subsidiary of MediaNet Group Technologies, builds, brands, customizes and administers proprietary loyalty/rewards/mall program for each client and organization and is also a value added element layered onto debit and stored value cards. Members receive up to 15% in rewards and up to 60% in discounts when purchasing merchandise and other products from the nation's best retailers through the BSP network. A typical BSP Rewards Mall may be seen at www.bigbrandmall.com and details about the program can be viewed at www.bsprewards.com.

"Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. MediaNet Group Technologies, Inc. disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions (including in the information technology and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies.

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