CommerceTel Corporation Reports 231% Increase in Third Quarter Revenues

SAN DIEGO, CA--(Marketwire - Nov 14, 2011) - CommerceTel Corporation (OTCBB: MFON), an award-winning provider of proprietary mobile marketing technologies and solutions, today announced its operating results for the third quarter and FY2011 year-to-date.

For the third fiscal quarter ended September 30^th, 2011, the Company reported revenue of $842,885, which represented an increase of approximately 231% when compared with revenue of $254,273 in the prior-year fiscal quarter ended September 30^th, 2010 and an increase of approximately 52% when compared with revenue of $553,108 during the previous quarter of FY2011 ended June 30^th, 2011.

For the nine months ended September 30^th, 2011, the Company's revenue increased approximately 125% to $1,536,630, compared to $683,095 during the same period of the previous fiscal year.

"During our third quarter we completed the acquisition of the assets of DigiMark, LLC which included Boomtext and an outstanding client roster. With Boomtext, and our previous strategic acquisitions of the assets of Adsparq, including Txtstation, and Mobivity, we are seeing the immediate organic growth expected by implementing our award-winning, patented technology into the operations and client base of all three acquired assets," stated Dennis Becker, Chief Executive Officer of CommerceTel.

The Company is estimating revenues of $1M for the current fourth quarter ending December 31^st, 2011. Revenues of $1M for the current quarter would result in a quarterly revenue growth rate of 18.6% over the most recent third quarter.

"When you examine the historical revenue performance of these strategic acquisitions, prior to joining CommerceTel, and compare that performance to our recent quarter, the organic growth produced by the combination of these companies with our technology is quite impressive," continued Becker. "Aside from the results we predicted through enabling these strategic acquisitions with our technology, I credit our team for their success in integrating essentially four companies in just five months."

Gross profits increased more than 179% to $966,025 (63% of revenue) in the nine months ended September 30^th, 2011, compared to $345,738 (51% of revenue) in the nine months ended September 30^th, 2010.

The Company also improved its quarterly Adjusted EBITDA performance year-to-date by more than 27% when comparing the third quarter's Adjusted EBITDA loss of $312,102 to the first quarter Adjusted EBITDA loss of $429,062. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation & amortization, non-cash stock based compensation, and non-cash changes in the fair market value of derivatives, as detailed for the first three quarters of 2011 below.

		Jan - Mar 11		Apr - Jun 11		Jul - Sep 11
Revenue		140,637		553,108		842,885
Net Income or Loss		-728,217		-466,186		-775,578
	Depreciation	1,284		5,876		6,154
	Amortization	753		118,865		185,629
	Change In FMV of Derivative Liabilities	-47,693		-159,263		54,134
	Interest Expense	105,408		138,258		133,057
	Taxes	0		-38		1,600
	Non-Cash Share Based Compensation Expense	239,403		33,295		82,902
Adjusted EBITDA		-429,062		-329,193		-312,102

For more information, please visit http://www.commercetel.com.

About CommerceTel

CommerceTel is an award-winning provider of proprietary mobile marketing technologies and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers via multiple channels. The only system of its kind, C4 is a cloud-based solution providing broad mobile communications and extensive CRM features. It is integrated with multiple tier-one PSTN/ IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Customers include CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal.

Safe Harbor

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements including words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the impact of intense competition, the continuation or worsening of current economic conditions and the condition of the domestic and global credit and capital markets as well as the Risk Factors disclosed in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 14, 2011 and its Quarterly Reports on Form 10-Q. Further information on CommerceTel's risk factors is contained in its filings with the Securities and Exchange Commission. CommerceTel does not undertake any duty nor does it intend to update the results of these forward-looking statements.