NeoMedia Technologies, Inc (NEOM)

[krays]

Claw,I think you may have misunderstood my statement. .02 is the fixed exercise price (as detailed below) in other words the maximum price of shares converted from preferred to common. The share count associated with these potential conversions will not go below the face value divided by the fixed conversion price. There is no doubt that conversions have occurred at much lower levels. Please refer to my post no 148137 for additional detail.

On February 17, 2006, we issued 22,000 shares of $1,000 Series C 8% convertible preferred stock to YA Global. The Series C convertible preferred stock is convertible into our common stock at the lower of $0.02 per share, or 97% of the lowest closing bid price of the common stock for the 30 trading days immediately preceding the conversion date. The fixed conversion price was reset from $0.50 to $0.02 on August 24, 2007