NeoMedia Technologies, Inc.
OTC Bulletin Board : NEOM

April 07, 2006 11:46 ET

NeoMedia Reports Recent Wins by Its Four New Mobile Marketing Companies at CTIA

FORT MYERS, Fla. & LAS VEGAS--(CCNMatthews - Apr 7, 2006) -

NeoMedia Technologies, Inc. (OTC BB: NEOM) an innovator in market-driven technologies, today reported from CTIA Wireless 2006 in Las Vegas on recent wins by its newly-acquired mobile marketing companies. One of the companies, Gavitec - mobile digit, is providing smartcode-reading hardware for a free ride on the Las Vegas monorail, courtesy of Swiftpass Digital. NeoMedia is exhibiting its flagship PaperClick® direct-to-web mobile technology, alongside its four signed subsidiaries and one soon-to-be-acquired company at CTIA, the largest event for the global wireless, mobile computing and wireless Internet industries in booth 1062 at the Las Vegas Convention Center.

NeoMedia Companies Showcasing at CTIA:

PaperClick (www.paperclick.com), a Florida-based pioneer and leader in patented, direct-to-web mobile technologies for mobile marketing and mobile enterprise solutions;

-- 12snap (www.12snap.com), a Germany-based award-winning leader in mobile marketing and entertainment applications;

-- Mobot (www.Mobot.com), a Boston-based pioneer in mobile visual recognition technology;

-- Sponge (www.spongegroup.com), a U.K.-based leader in developing and implementing mobile marketing applications and content delivery;

-- Gavitec - mobile digit (www.gavitec.com), a Germany-based leading provider of mobile technology and marketing solutions, and

-- HipCricket (www.HipCricket.com), a Connecticut-based mobile marketing leader providing innovative, custom solutions to broadcasters and brand marketers (based on a Letter of Intent to acquire, signed in February 2006).

Recent Wins by the New NeoMedia 'Supercompany'

12snap has recently won the adidas contract for mobile content provision across 19 countries included in an integrated cross-media campaign -- the most extensive content delivery campaign in 12snap's history. 12snap creates different ring tones and wallpapers for an array of sports, offered free to consumers via their mobile phones -- all requiring formatting to be compatible with the different carriers and handsets available throughout the 19 countries.

12snap has also recently launched an ongoing mobile loyalty program for Coca-Cola Germany -- the "Coke Fridge" -- that has generated great excitement and response in the market, and is based on a highly innovative portal that is downloaded to handsets and that updates itself dynamically over the Mobile Internet. Selected results: 400,000 subscribers thus far led to Coca-Cola recently being awarded the Cross Media Award at the German Media Awards(1). And, according to Lebensmittelzeitung's "Bestsellers", more than 1.3 million codes were collected from Coke bottles by consumers in the first six weeks of this campaign.

Gavitec has been running an in-market pilot program in Switzerland for its mobile macro-payment system with the leading Swiss retail bank PostFinance, Unisys, seven selected retailers including Migros, CoOp and McDonald's and approximately 1000 consumers. Participants receive a personal Data Matrix code via text message to their mobile phone. Then to complete a purchase, participants hold their cell phone over Gavitec's EXIO code reader and enter their PIN code to debit their PostFinance account. As a result of the successful pilot, PostFinance expects to roll out more Gavitec solutions in Switzerland this year.

Gavitec also continues to work with Hewlett-Packard Labs in the U.K. to develop campaigns utilizing Gavitec's handset decoding software Lavasphere, whereby consumers receive mobile information and content by using the camera on mobile phones to scan and de-code 2-dimensional smartcodes. Recent successful public trials include: "Coast Mobile" in conjunction with the British Broadcasting Corporation (BBC) and News International's The Times newspaper, along with a number of other interactive mobile campaigns. Gavitec's Lavasphere technology is synergistic with NeoMedia's own PaperClick handset code-reader, and plans are being implemented to further strengthen NeoMedia's offerings that connect the physical world to the mobile Internet.

Mobot is working with ELLEgirl, Hachette's magazine, to provide promotions within each monthly issue. In a recent issue a "Daily Instant Win" campaign encouraged readers to use camera phones to snap a picture of a different advertisement each day, and through Mobot's visual-matching technology, enter to win numerous prizes. Followup research indicated that readers entered to win an average of 22 times within a month; purchase intent was 14% higher on average from participants vs. non-participants; advertiser favorability and recall also increased significantly for participants, and 96% of participants were "likely" or "extremely likely" to participate in future similar Mobot promotions.

Mobot is also continuing its partnership with The Light Agency to exclusively distribute its visual search and recognition technology to the U.K. grocery sector. Mobot's technology enhances The Light Agency's award-winning mobile phone-based loyalty program with the Sainsburys-owned convenience store chain Jackson's by allowing consumers to receive offers on products by snapping a photo in-store and sending it to Mobot's server via mobile.

Mobot has also been working at retail in the U.S., providing enabling technology for Warner Music Group's U.S. sales and retail marketing company WEA Corp. to run a snap-and-enter contest in music stores for music fans to win tailored offers, samples and discounts.

Sponge has had great success in the U.K. market with its auction and new reverse-auction applications, and further expanded its relationship with Thomson Holidays. During the first quarter of 2006, Thomson sold off its excess holiday inventory by allowing customers to bid for specified holidays via SMS and online -- with a range of highest and lowest bid auctions using Sponge's applications. Based on the success of the auctions, Thomson is putting together a second campaign, "Bid or Buy for Virgin Experiences," where customers have the option to bid on a Virgin Experience directly or ask a member of Thomson staff to submit their bid for them. The auction is enabled by Sponge's Text Generator platform, which is presently handling more than 600 other mobile marketing campaigns simultaneously.

Sponge also recently ran the largest on-pack promotion in Europe to date. For Walker's (Frito-Lay) potato chips, Sponge enabled a promotion that offered consumers of Walker's -- the U.K.'s largest snack brand -- to win an iPod every 5 minutes for 4 weeks, by texting a unique code found on-pack into the Sponge platform. The campaign was highly successful with more than 5% of the total U.K. population participating, and the campaign has been expanded to Belgium and the Netherlands on the basis of its success. A total of 23% of the U.K. population interacted with Sponge applications in 2005.

This is just the beginning according to Charles T. Jensen, president and CEO of NeoMedia Technologies. "The mobile marketing industry is in its infancy, especially in the U.S. We look forward to helping lead the way to create possibly the most effective marketing medium, ever."

About NeoMedia Technologies, Inc.

NeoMedia Technologies, Inc. (www.neom.com) is a diversified global company offering leading edge, technologically advanced products and solutions for companies and consumers, built upon its solid family of patented products and processes, and management experience and expertise. Its mobile services group of companies offers end-to-end mobile enterprise and mobile marketing solutions, through its flagship direct-to-mobile-web PaperClick® technology, and ground-breaking products and services from 4 (shortly to be 5) of the USA's and Europe's leading mobile marketing providers. By linking consumers and companies to the interactive electronic world, NeoMedia delivers one-to-one, permission-based, personalized and profiled dialogue--anytime and anywhere.

The PaperClick suite of easy-to-use, market-driven products and applications are based on a strong foundation of patented technology, comprising the PaperClick (www.PaperClick.com) platform, PaperClick for Camera Phones™ and the PaperClick Mobile GoWindow™ and CodeWindow™, all of which provide One Click to Content™ connectivity for products, print, packaging and other physical objects to link directly to specific desired content on the mobile Internet.

NeoMedia's recently acquired companies and offerings include 12snap AG (www.12snap.com), a Munich, Germany-based award-winning leader in mobile marketing and entertainment applications; Mobot, Inc. (www.Mobot.com), a Lexington, Massachusetts-based pioneer in mobile visual recognition technology; Sponge Ltd. (www.spongegroup.com), a London, UK-based leader in developing and implementing mobile marketing applications and content delivery; and Gavitec AG - mobile digit (www.gavitec.com), a Wurselen, Germany-based leading provider of mobile technology and marketing solutions.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.

Trademarks are properties of their respective owners.

(1) Source: Coca-Cola press release March 2006.

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