FORT MYERS, FLA., Nov. 16, 2006 – NeoMedia Technologies, Inc. (OTC BB: NEOM), said today that it is continuing to revise its mobile marketing strategy, announcing the sale of recently acquired Sponge Ltd., a subsidiary based in the U.K., back to its founders. Previously, NeoMedia had announced the signing of a non-binding Letter of Intent to sell its micro paint repair business unit in order to concentrate its corporate marketing resources on mobile marketing opportunities for its patented qode® product platform.
Charles T. Jensen, president and CEO of NeoMedia, said “that this agreement with Sponge is another significant step by company management to target corporate resources on the introduction of our patented qode suite of products in European markets and in North America and China. We decided it is in the best interest of our shareholders to continue to fine-tune our focus, trim our cash burn rate, and reverse substantial dilution.”
Under the terms of the agreement, NeoMedia receives back from Sponge 33,097,135 shares of its own stock and $100,000 (net of attorney fees) in cash, and is due an additional $150,000 by March 7, 2007. NeoMedia also retains a 7.5% interest in the London-based company which develops and implements mobile marketing campaigns, mobile applications and delivers content for U.K. and international customers.
All other agreements of NeoMedia relating to the acquisition are terminated, including the purchase price guarantee clause which called for NeoMedia to make up, in cash, any decrease in the value of shares issued as consideration for the acquisition of Sponge. Based on NeoMedia’s current share price, this obligation would have been in excess of $10 million.
“NeoMedia’s plan and intent,” said Mr. Jensen, “is to build shareholder value by focusing our development and marketing expertise on next-generation mobile applications and opportunities, especially for our qode direct-to-mobile-web cell phone technology. To do so successfully, NeoMedia must also concentrate its resources in order to continue to build our presence and products, here in the U.S., in Europe, and around the world.”
NeoMedia’s patented qode (www.qode.com) suite is an easy-to-use set of applications -- qode®reader and qode®window -- 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. qode®reader works with camera phones, letting users “click” on two-dimensional “smart codes” to access the Mobile Web site to which the code is linked, while qode®window lets users reach the same destination by entering a key word, slogan, or product barcode number.
“NeoMedia,” said Mr. Jensen, “looks forward to a continuing working relationship with Sponge founding partners Alex Meisl and Dan Parker and their team as part owner and co-marketing partner.”
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