NeoMedia Technologies, Inc (NEOM)

[ss9173]

DD Third Screen eyeing more funding rather than sale
Wed Jun 7, 2006 5:52pm ET

By Sinead Carew

http://today.reuters.com/investing/financeArticle.aspx?type=mergersNews&storyID=2006-06-07T21520...

NEW YORK, June 7 (Reuters) - Privately held Third Screen Media is looking for additional funding to expand its mobile advertising business rather than trying to sell the company, its top executive said on Wednesday.

The comments follow a recent Wall Street Journal report that Microsoft Corp. (MSFT.O: Quote, Profile, Research) was in talks to buy Third Screen to gain access to its technology and relationships with Third Screen's clients, which include USA Today and Weather Channel.

But Third Screen's Chief Executive Thomas Burgess said the two year old company, which has received about $8 million in funding to date and is looking for more, would focus on growing the company organically rather than looking for a sale.

"Right now we're not going to sell the company. We're a leading company going forward on our own." he said. "In two, five or 10 years who knows ... I don't want to say there's never been any conversations, but right now it's not our plan."

Wireless providers, advertisers and and media companies are all eyeing wireless devices as potential vehicles for advertising as more and more cellphones have high quality color screens, video players and web browsers.

Third Screen hopes to carve out a niche in this market by selling software that specializes in placing ads on mobile video clips, Web sites and video game players.

It also offers a service connecting advertisers with publishers of mobile games, video clips or Web sites with an aim to kick start the nascent market for mobile advertising.

Burgess said he hopes the company, which has generated revenue this year and last year, will turn a profit in 2007, but he did not give a specific forecast.

Most of the company's revenue currently comes from its services business, but it expects software and services to have equal weight next year, Burgess said.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

SS9173