Airline Passengers Prefer SkyMedia Promotion Images On Traytables, New Survey Shows.

Business Editors and Travel Writers

PHOENIX--(BUSINESS WIRE)--July 23, 2002

Perception of airline using traytable advertising would improve or

remain the same for more than 93 percent of those surveyed

A recent survey of hundreds of airline passengers in three major U.S. airports seems to show that they would react positively in large numbers to a new effort by airlines to introduce inflight promotional images on the tray-tables, a new survey suggests.

InTransit Communications, Inc. (ITC), developer of SkyMedia, a new advertising vehicle for domestic and international airlines, surveyed passengers at Phoenix, Denver and Tucson airports in June 2002, asking travel related questions about what the passengers think of airlines offering traytable promotional space for advertisers including prototype ad campaign concepts from potential corporate sponsors in the automotive, sports and leisure industries.

The survey was analyzed by noted Behavioral Psychologist, Dr. Stephen R. Lankton of Phoenix, Arizona, and Dr. Kathleen Donaghy, a noted researcher and statistician. It should be noted that no incentives of any kind were provided to those who participated in the survey.

Of the 280 airline passengers surveyed at the three airports, 93.6 percent said their travel experience and/or perception of an airline that offers traytable advertising would either improve or remain the same, with only 6.4 claiming that their perception would decline. Asked how their travel experience and/or perception of the actual advertiser would be affected by traytable advertising, a full 96.4 percent responded that it would either improve (38.6 percent) or remain the same (57.9 percent). Only 3.6 percent of all respondents surveyed said their travel experience or perception of company advertising on the surface of airline traytables would decline.

"Like so many service industries, airlines are both consumer driven, and revenue driven," said Nick Pajic, President of In-Transit Communications. "They have a need, particularly now, to find consumer-accepted methods of raising revenue in order not only to return to profitability, but to provide the level of acceptable service standards that airline consumers demand. This survey indicates that traytable advertising, implemented in an appealing and appropriate way, can be a `win-win' proposition for both airlines and airline customers."

The survey was conducted on behalf of a major domestic airline that is interested in the possibility of becoming one of the launch customers for In-Transit Communications' new SkyMedia inflight promotions product.

In their analysis of the survey, Drs. Lankton and Donaghy concluded that from the demographic and other data collected by the survey, "the concept of traytable images containing advertising is viewed as a value-added aspect of the air traveler's experience. In fact," their analysis adds, "it is beyond question that most travelers would enjoy images on the traytables (87.5 percent), that the images would enhance their travel experience and image of the airlines (28.6 percent) and would improve the image of the advertisers (38.6 percent). In the worse case scenario, the images would improve or leave unchanged the image of the advertisers (96.5 percent) and their travel experience or image of the airlines (93.6 percent) that displayed them.

"From the information provided in this reliable and valid survey," Drs. Lankton and Donaghy concluded, "interested parties (advertisers, airlines and In-Transit Communications) should have confidence in proceeding with a traytable advertising project."

Dave Sanders, Chairman and CEO of In-Transit Communications, said, "Discussions with major and large regional airlines continue to mature, and this survey only enhances the belief among marketing professionals at several domestic and international airlines that the strategic use of traytable promotions can be a valuable tool both to communicate and reinforce a positive corporate image to airline customers, and to provide vital additional revenues to airlines that are struggling to regain profitability in a high-cost and extremely competitive low-fare environment."

Traytable messages will vary depending on the promotional goals of the airline and its marketing partners -- credit card companies, telecommunications, automotive, financial institutions, cruises, car rentals, hotels, resorts and others. SkyMedia assumes all financial risk, and guarantees revenue sharing to airlines regardless of their financial performance.

In-Transit Communications also is offering airline passengers who choose to participate in SkyMedia Trivia Contest eligibility for awards of up to 100,000 bonus frequent flyer miles monthly, and an annual Grand Prize of 1 million miles.

ITC's U.S. and international patent-pending product is easy to install and remove, and is virtually maintenance-free. Only the top tray surface is available for promotions and introduces unparalleled marketing opportunities to otherwise difficult to reach affluent business and leisure travelers. Images are in full view only when traytables are in the "service" position.

For further information about SkyMedia, please visit ITC's Web site, http://www.InFlightBiz.com.