SOURCE: MediaNet Group Technologies, Inc.

May 06, 2008 10:50 ET

MediaNet Group Technologies Announces Record Revenues in First Quarter

MARGATE, FL--(Marketwire - May 6, 2008) - MediaNet Group Technologies, Inc. (OTCBB: MEDG), operating the largest online mall and affinity program platform through its BSP Rewards subsidiary, today announced financial results for the first quarter ended March 31, 2008.

For the first quarter ended March 31, 2008, revenues increased 186% to $493,963 as compared to $172,530 for the first quarter ended March 31, 2007. The Company also noted that revenue increased 13%, or $58,260, over the fourth quarter ended December 31, 2007. The first quarter 2008 net loss was $179,031, or a loss per basic and diluted share of $0.01, as compared to a net loss for the first quarter of 2007 of $203,873, or a loss per basic and diluted share of $0.02.

Shares outstanding were 19,436,736 at March 31, 2008 versus 11,836,363 in the prior year period. The increase in shares outstanding is directly related to the private placement of six million shares completed during the fourth quarter of 2007 and for other issuances of common shares related to stock-based compensation.

Commenting on the first quarter results, Martin Berns, Chief Executive Officer, stated, "At the end of 2007 we had the opportunity to analyze and realign merchant partners, our branded mall clients and their respective member databases. Accordingly, we added and deleted merchants that did not offer sufficient rebates and clients that did not produce revenue in proportion to the cost involved in servicing them. These measures are aimed at producing more revenue and higher margins in 2008, and are already proving successful."

As a result of these changes the Company processed $1.8 million of merchant transactions during the first quarter ended March 31, 2008 as compared to $1.7 million in transactions in the same period of 2007 but, as noted, revenue increased by 186%.

Mr. Berns further commented, "The first quarter showed an increase of 13% over the holiday volume of the fourth quarter. The increase in revenue both year over year and quarter over quarter is reflected in our efforts towards shifting to a more profitable, higher quality base of merchants. In addition, our ability to manage our cost structure and the continued addition of both depth and breadth of new private branded mall clients is directly responsible for our improved financial performance and efforts to bring us closer to profitability."

Since the end of the fourth quarter, the Company increased the number of merchants in the mall by 64 to 750. New merchants include such companies as Travelocity, InterContinental Hotels, REI, CruiseDirect, Gateway, HBO Store, Motorola Store and Skechers.

About MediaNet Group Technologies, Inc.:

MediaNet Group Technologies, Inc. (OTCBB: MEDG), through its BSP Rewards division, has developed the largest online mall and affinity program platform. BSP builds, brands, customizes proprietary loyalty/rewards/mall programs for clients and organizations and for a value added element layered onto debit and stored value cards. Companies and organizations enroll their members into the program and BSP cross-markets them to its entire database.

The Company generates product purchases from over 750 participating mall merchants including the nation's largest retailers as well as gift cards and a large discount catalog. With over 60 web malls already developed and in use, BSP Rewards currently serves more than 550,000 registered users. The Company offers affordable, immediate implementation, delivered as rich turnkey enterprise solutions for corporations interested in expanding their web presence and enhancing customer relations -- turning operational costs into profit centers. Current mall merchants include Sears, Target, Macy's, BP Oil, Office Depot, Bass Pro Shops, Best Buy, Budget and Chili's.

"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, and the purchasing activity or lack thereof by registered web mall members. The number of BSP web mall members is routinely revised to reflect adjustments for inactive membership. Inactive members are defined as registered members who have not shopped in a BSP web mall for an extended period of time.

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