NeoMedia Technologies, Inc (NEOM)

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DD Intel has helped fund Action Engine

http://www.intel.com/capital/news/releases/030314.htm

Action Engine Closes $15.5 Million Series C Financing

Redmond, Wash.,--(BUSINESS WIRE)--March 14, 2003-- Action Engine today announces it has closed a $15.5 million Series C financing led by Baker Capital. Other new investors in the round include Cascadia Capital LLC and the Intel Communications Fund. All existing preferred investors (OVP Venture Partners, Northwest Venture Associates and Spangler Ventures) also participated. The company, which has 47 employees, has raised a total of $35 million since it was founded in February 2000.

"Action Engine delivers key enabling technology for mobile operators launching data services on smart devices, while also giving them the ability to manage the smart devices once they are in the hands of the subscriber," said P. Kevin Kilroy, Baker Capital.

"Action Engine has distinguished itself by demonstrating significant traction with Mobile Network Operators. Our strong industry partnerships, success with key operators and ground breaking technology set the stage for long-term success," said Craig Eisler, Action Engine’s CEO. "$15.5M in new financing stands out today against a landscape of a significantly reduced number of venture financings and an unprecedented number of venture backed companies being shut down."

The funds are slated for increased sales and marketing efforts in Europe, Asia and the US as well as further development of Action Engine’s Mobile Web Services Platform and Device Management Software platforms. Action Engine products are deployed by existing customers Orange SA (FOREIGN OTC: ORGEF), mmO2 (NYSE: OOM; LSE OOM), and the Company expects to announce a number of new mobile operator customers in the coming months.

The Action Engine Mobile Web Services Platform is a client-server solution for smart devices that, by using a thick client, provides a rich and easy-to-use experience, unparalleled network efficiency, and convenient and always-available access to applications and data independent of a network connection.

Action Engine provides a free downloadable SDK for its Mobile Web Services Platform that allows developers to build smart client, smart server applications using industry standard XML. These applications then run on top of the Mobile Web Services Platform on smart device operating systems like Symbian OS.

Action Engine also provides a comprehensive Over-The-Air Device Management Platform that simplifies device configuration, device registration, software maintenance, service provisioning, security, wireless data backup/restore, applications downloads, and more.

About Baker Capital

Baker Capital manages more than $1.5 billion in private equity funds and focuses on technology industry investments. Baker Capital invests in communications components, information technology and related systems, infrastructure suppliers, network applications developers, service providers and software technology. The firm invests both in the U.S. and internationally. Representative portfolio companies include Akamai Technologies, Connected Corporation, Curl Corporation, IQ Navigator, QS Communications AG, JP Systems, Inc., and TEEM Photonics SA.

About Cascadia Capital

Cascadia Capital offers a full spectrum of Investment Banking services to a wide range of emerging growth companies in the greater Northwest, British Columbia and Colorado as well as select software, telecom, and physical security companies throughout the United States. We provide access to venture and growth capital, merger and acquisition partners, debt financings, and financial restructuring assistance. Through our venture fund, we also make direct investments in companies that we feel most strongly match our industry expertise.

About Intel Communications Fund

The $500 million Intel Communications Fund, managed by Intel Capital, was established in September 1999 and focuses on accelerating Intel voice and data communications and wireless networking initiatives. The fund targets companies developing basic communications and semiconductor components and boards, real-time operating systems, software tools and utilities, system level hardware and software, and wireless network services and channels. The Intel Communications Fund has made more than 80 investments in 17 countries on five continents. For more information about the fund, visit www.intel.com/capital/portfolio/funds/icf.htm.

About Action Engine

Action Engine’s browserless Mobile Web Services Platform delivers a superior user experience and access to web services, also called connected applications, and personal data from smart mobile devices. With Action Engine’s evolutionary "smart software for smart mobile devices," carriers and wireless network operators, smart device manufacturers, and enterprises can rapidly deploy mobile web services that are easy to use and manage, are network efficient, and do not require a constant network connection. Our network operator customers include Orange SA (FOREIGN OTC: ORGEF) and mmO2 (NYSE: OOM; LSE OOM). For more information visit www.actionengine.com.

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