NeoMedia's Global Patent Position Expands Again with Issuance of Patent in Mexico and Allowance in U.S.

FT. MYERS, Fla. -- NeoMedia Technologies, Inc. (OTC BB: NEOM), an innovator in mobile marketing services and patented technologies that provide automatic links to Internet-based information, said today it has been awarded a patent in Mexico and an allowance for another new patent in the U.S., both for technology which links to the Internet.

NeoMedia said that the Instituto Mexicano de la Propiedad Industrial, the patent office in Mexico, has awarded a patent for the process invented by NeoMedia for "automatic access of electronic information through secure machine-readable codes on printed documents." Kevin Hunter, NeoMedia's chief scientist, and Rob Durst, its former executive vice president and chief technical officer, created the technology and are listed as the inventors.

The patent recognizes NeoMedia's innovation in creating a secure link between printed documents and the Internet using an obfuscated bar code and its technology. In August 1999, the U.S. Patent and Trademark Office awarded patent No. 5,933,829 to NeoMedia for the same technology.

NeoMedia also said that the U.S. Patent and Trademark Office has issued an allowance for another new patent, application serial no. 09/821,677, covering 44 claims, and is an adaptation of NeoMedia's U.S. Patent 6,542,933, applying to technology that accesses Internet content from wireless devices. NeoMedia said it has paid the issue fee and expects the patent to issue shortly.

The latest NeoMedia patent - the company's seventh in the U.S. - was also invented by Mr. Hunter. It covers accessing Internet content with a browser on a wireless device, wherein a user inputs a linkage code that has two parts: a routing identification code and an item identification code. The wireless device transmits the linkage code to a URL assembly server, which extracts the routing identification code from the received linkage code and obtains a URL template associated with the routing identification code. The URL template includes the name of a resolution server, and the URL-assembly server fills-in the URL template with the item identification code extracted from the received linkage code and then sends the completed URL template to the resolution server. The resolution server determines the location of the Internet content based on the item identification code and then sends the Internet content to the wireless device.

'Protects IP, Strengthens Already-Solid Global Patent Position'

"The issuance of this patent by the Instituto Mexicano de la Propiedad Industrial and the new allowance from the U.S. Patent and Trademark Office continues to strengthen NeoMedia's intellectual properties and already-solid global patent position," said Chas Fritz, the company's founder and chairman.

"Patents issued in recognition of NeoMedia's innovations can only bolster our position in patent infringement law suits and patent licensing," he said.

NeoMedia currently has patent infringement law suits pending against AirClic Inc., Scanbuy(TM), Inc, and Virgin(R) Entertainment Group, Inc., Virgin Megastore Online and Virgin Megastore, and has won a default judgement in its suit against LScan Technologies Inc.

"As use of NeoMedia's patented PaperClick(R) technology platform continues to grow as a key component in mobile marketing, gaining the recognition and protection of patent offices worldwide is very important in protecting our rights," said Mr. Fritz.

Covering the Mobile Marketing Bases

The patented PaperClick technologies are the basis of applications for mobile marketing including:

- Word Activation, with brand names and tag lines registered in the PaperClick WordRegistry(TM), created by NeoMedia and Fortune(R) 500 innovator SAIC, originator of Internet domain name registration. Words and tag lines can be entered in the PaperClick Mobile Go-Window(TM), a horizontal text-entry bar on the screen of a wireless device, for a one-click link to content from marketers;

- Created Code Activation, with two-dimensional PaperClick codes created and placed on packaging, literature, ads, posters, etc., to provides a one-click link to marketers' content via popular mobile phones;

- Existing Code Activation, with the ability to use a camera phone to "take a picture" of already-in-the-market UPC, EAN, JAN and ISBN codes to link to content from marketers.

Available to Marketers, Wireless Carriers, Device Manufacturers

The patented PaperClick family of mobile marketing services is immediately available to brand managers and marketing/advertising agencies, wireless carriers, and manufacturers of Internet-capable devices including cell phones, SmartPhones and PDA's. Information is available from [phone], Ext. 125, or by e-mailing [e-mail].

About NeoMedia Technologies, Inc.

NeoMedia Technologies, Inc. (www.neom.com) is a developer and international marketer of software and patented technologies, including PaperClick (www.PaperClick.com) PaperClick for Camera Cell Phones and the PaperClick Mobile Go-Window, which link products, print and physical objects directly to targeted online data. NeoMedia also offers expertise in homeland security and e-authentication applications, and its Systems Integration Group specializes in providing expert-based IT consulting, hardware, and software solutions. NeoMedia's Micro Paint Repair business unit specializes in products and services for the worldwide micro paint repair industry, including a system and processes utilizing proprietary technology.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.

PaperClick is a registered trademark, and PaperClick For Cell Phones, PaperClick Mobile Go-Window and PaperClick WordRegistry are trademarks of NeoMedia Technologies, Inc. Other trademarks are properties of their respective owners.