Cross Invests $2 Million in Neomedia Technologies; Strategic Partnership Formed to Promote and Market Print-to-Web Technology.

FORT MYERS, Fla.--(BUSINESS WIRE)--June 7, 1999--

NeoMedia Technologies, Inc. (NASDAQ:NEOM) today announced that A.T. Cross Company has invested $2 million dollars in the Company and has entered into an agreement to jointly promote and market hardware and software products using NeoMedia's proprietary NeoLink(TM) technology.

A.T. Cross is the manufacturer of NetPen(TM), an ingenious premium writing instrument that also incorporates a Symbol Technologies bar-code scanning and storage device. NetPen(TM) is a highly complementary mass market peripheral for NeoMedia's patent-pending NeoLink(TM) system, which directly links specially coded references in print material to on-line sources of information including those available through the Internet and published on the World Wide Web.

NeoLink(TM) client software can be downloaded free of charge from NeoMedia's website at www.neom.com. In typical use, the NetPen(TM) is carried by customers as a conventional writing instrument, even when they do not have direct access to the Internet -- such as when traveling out of the office or away from home. Upon finding an article of interest marked with a NeoLink(TM) code, they simply scan the reference with the NetPen(TM) to capture the link. Later, when they place the NetPen(TM) in a docking "inkwell" connected to their computer or set-top box, the NeoLink(TM) software downloads the codes stored in the pen and directly links the user to the previously scanned web sites and other identified information without the need of search engines or complex URLs. The NetPen(TM) will store up to 1000 NeoLink(TM) codes.

John E. Buckley, Cross Executive Vice President and COO, said that based on early focus group reaction, Cross is expecting enthusiastic market acceptance of this innovative concept. "Imagine the average consumer being able to directly link conventional print media, like newspapers, magazines, catalogs and direct mail, to a wealth of electronic information without the need to remember and type arcane URLs, work master complex search engines, or locate hard to find information by manually drilling down through massive web sites from generic home pages or portals.

"What we are providing is nothing short of the revolutionary fusion of the established world of print with the new world of the web. The target is the biggest and fastest growing market in history: consumer adoption of web based e-commerce," Buckley added.

NeoMedia President and CEO, Chas Fritz said, "This is an ideal alliance. Our products compliment each other perfectly. Our combined technologies, together with Cross' strong brand, domestic and international marketing strength and established distribution channels, puts us in perfect position to make print media an extension of web media -- just as Broadcast.com has done for radio. Our goal is to set a new standard. Our relationship with Cross is a giant step in that direction."

Under the terms of the agreement, NeoMedia and Cross will work together to enlist publishers and advertisers to adopt the NeoLink(TM) and NetPen(TM) technologies. The agreement also appoints Cross as an agent to sell NeoLink(TM) software products alone or bundled with Cross products. It also grants NeoMedia rights to market and sell certain Cross products. In addition, NeoMedia and Cross will work together to develop additional business opportunities related to web-commerce and automated access to on-line information using bar-code and related technologies. This will be pursued through aggressive and coordinated commercial development of the two companies' combined products, services and intellectual property portfolios.

A.T. Cross Company (ASE:ATX) was founded in 1846 by Richard Cross. Today, the company is a major international manufacturer and distributor of fine writing instruments and pen computing products.

NeoMedia was founded in 1989. Its common stock trades on the NASDAQ Small Cap Market under the symbol NEOM. NeoMedia provides proprietary software for document management and production systems, the migration of programs and databases from closed system to open system platforms including Year 2000 conversions and solutions, and proprietary Internet software that links physical objects, such as paper, to corresponding electronic information: Linking the Worlds of Print and Electronic Media(SM).

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (including but not limited to statements relating to consumer acceptance of new products and processes, the ability of Cross and NeoMedia to set new standards, and the continued growth of web based e-commerce). These forward looking statements are subject to risks and uncertainties, including but not limited to risks associated with consumer acceptance of the new products, consumer willingness to adopt new methods and processes, the willingness of distributors and retailers to accept new products, and continued consumer support for e-commerce. Actual results could differ materially from those expressed in any forward-looking statement..

Additional discussions of factors that could cause actual results to differ materially from management's' expectations are contained in the A.T. Cross and NeoMedia's filings under the Securities Exchange Act of 1934.

Cross(R) and NetPen(TM) are trademarks or registered trademarks of A.T. Cross Company. NeoLink(TM), Intelligent Documents(TM), IDOCs(TM), and IDOCs-enabled(TM) are trademarks, and Linking the Worlds of Print and Electronic Media(SM) is a service mark of NeoMedia Technologies, Inc. This release is available on the NeoMedia Website: www.neom.com.