SOURCE: Options Media Group

April 20, 2010 08:30 ET

Options Media Group Signs Definitive Agreement to Enter Mobile and Smart Phone Application Market

OPMG Acquires PhoneGuard and U.S./Canadian Licenses for NetQin Mobile Anti-Virus, Anti-Harassment, Anti-Texting Software

BOCA RATON, FL--(Marketwire - April 20, 2010) -  Options Media Group Holdings, Inc. (OTCBB: OPMG), a growing force in mobile applications and marketing and mobile social media, today announced it has closed on its previously announced acquisition of PhoneGuard and entered the mobile and smart phone application market. PhoneGuard is the exclusive licensee for the United States and Canada of software which safeguard cells and smart phones from the ever increasing risk posed by hackers and cyber criminals. Options Media Group acquired all of the assets of PhoneGuard and became the exclusive marketer within the United States and Canada. In addition to anti-virus and anti-malware software, Options Media Group also acquired PhoneGuard's rights to a state-of-the-art product that, when installed on a mobile device, prevents the user from texting while driving. Options Media Group plans to make both the security oriented product and the anti-texting while driving products available to the market immediately.

PhoneGuard's new Mobile Anti-Texting software prevents texting while driving, thereby allowing them to focus on the road. PhoneGuard's new Anti-Texting application is designed to keep teenagers and family members safe while driving by disabling texting, instant messaging, calling, Web browsing and other phone-based distractions that should not be used while sitting behind the wheel of a moving vehicle. PhoneGuard protects drivers from the dangerous temptation to use their phone while driving. A January 2010 Nielsen study of the phone bills of 40,000 US teenagers found that teenagers send text messages an average of 10 times per hour while they are awake -- exceeding 3100 text message per month. Many teenagers text and drive, which has been proven the world over to be a deadly combination. In fact, as a Virginia Tech Transportation Institute (VTTI) study found, texting while driving increases the risk of motor vehicle accidents by 2300 percent, six times greater than driving while intoxicated. Even though the American Automobile Association (AAA) is having success in passing anti-texting while driving laws across the United States, teenagers are still sending texts from behind the wheel of moving cars.

"We believe a lucrative market exists for software that can be installed on cell phones in order to prevent texting while driving," commented Scott Frohman, CEO Of Options Media Group. "Within the acquisition we are announcing today, we are also acquiring one of the most robust technologies available today that prevents texting while driving. A majority of states within the U.S. have already passed legislation making it illegal to text while driving and the vast majority of the remaining states are in various stages of implementing similar restrictions. Considering the very few number of competitors currently addressing this important unmet market need, we believe our very robust software product could become very popular in the marketplace."

The PhoneGuard anti-virus product is powered by technology provided by NetQin Tech Co., the incontestable worldwide leader in mobile security, including mobile antivirus, anti-harassment, and privacy protection, with more than 30 million current subscribers in more than 200 countries and regions. The NetQin software currently commands an approximate 65% market share in the large and growing Chinese market. While most personal computer users have already protected their systems from viruses, spyware and other attacks, most cell and smart phone users, on the other hand, are relatively unaware of the risks presented by a new breed of cyber criminals. Installation of PhoneGuard prevents not only the potential loss of data, but also virtually eliminates the ability for hackers to listen in on phone conversations, pinpoint the user's GPS coordinates, steal information and/or browse personal emails and text information.

Mr. Frohman continued, "We believe the acquisition of these paradigm shifting technologies represents a significant competitive advantage to Options Media Group. For the past decade trends in mobile communications originated in Asia and Europe before coming to the United States. Evidence suggests there is a similar situation underway relative to cell and smart phone viruses and other security threats. The majority of smart phone users in Asia have already installed anti-virus software in order to provide security against the hundreds of prevalent viruses, yet North American users are virtually unprotected. This presents a massive market opportunity. Management expects to aggressively attack this market over the coming months in order to grow revenue, increase earnings and ultimately improve shareholder value."

About Options Media Holdings, Inc.
Options Media Group Holdings, Inc. is a growing force in mobile marketing and mobile social media. The Company provides an email services for on-demand email marketing to create, send and track professional and permission-based email marketing campaigns. Additionally, Options Media provides precision direct marketing solutions including email marketing, sms/mobile marketing, sms/keyword marketing, custom lead generation and creative services. Options Media provides clients with access to software, hardware, bandwidth and exclusive domains and IP addresses, as well as the ability to upload and manage subscribers, and review and upload campaigns and track results for a 360-degree full-service customer marketing solution.

About NetQin
Established in 2005, NetQin has provided services (including mobile anti-virus, anti-harassment, privacy protection) to more than 30 million subscribers in more than 200 countries and regions. NetQin already has a strong foothold in China, the Middle East, Southeast Asia and Europe. With more than 65% of the mobile security market in China, NetQin is the incontestable industry leader.

Heavily invested in R&D, NetQin owns a broad product line covering the majority of smart phones globally. Their R&D team is composed of more than a 100 person staff, 80% of whom hold a master or doctoral degree. The entire R&D team is highly skilled and experienced in the field of mobile security. With its own intellectual property, NetQin holds over 10 new and unique breakthrough innovations in the field of mobile security. NetQin extensively partners and cooperates with many internationally recognized mobile phone brands and carriers. With NetQin's continued growth, it certainly makes it a worthy recipient of the 2009 China Frost & Sullivan Award for Mobile Security Market Leadership.

About PhoneGuard
PhoneGuard is a new software suite specifically designed to safeguard cellular phones/PDAs or smart phones from the ever increasing risk of data theft by hackers and cyber criminals. In conjunction with Cellular Spyware Inc., and powered by NetQin, PhoneGuard is the new wave of protection technology in North America designed to guard users' personal information. PhoneGuard is headquartered at 6400 North Andrews Avenue, Suite 340 in Coconut Creek, Florida.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including the future market and success of the PhoneGuard products and their impact on Options Media's results of operations. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the the willingness of North American consumers to install the PhoneGuard products, Options Media's ability to reach agreements with mobile carriers and major retailers, the current recession, a potential decrease in corporate advertising spending, potential consumer spending reductions and the condition of the domestic and global credit and capital markets.

Further information on Options Media's risk factors is contained in its filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2009. Any forward-looking statement made by Options Media in this press release speaks only as of the date on which it is made. Factors or events that could cause actual results to differ may emerge from time to time, and it is not possible to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

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