NeoMedia Questions Content and Timing of Investor Newsletter's E-Mail to Subscribers.

FORT MYERS, Fla. -- NeoMedia Technologies, Inc. (OTC BB: NEOM), an innovator in market-driven technologies, said today that it questions the content and timing of an e-mail sent by an investor newsletter to its subscribers on Friday, October 6th.

Charles T. Jensen, president and CEO of NeoMedia, said the e-mail was sent by ChangeWave MicroCap Investor, a weekly newsletter published by Phillips Investment Resources, LLC, to subscribers just before 12 p.m., proclaiming in a headline, "time to sell NeoMedia." Mr. Jensen said the e-mail "set off record selling by NeoMedia investors," with the share price dropping by 36.9%. By day's end, more than 42 million shares traded, an increase of some 1,600% over NeoMedia's three-month average shares for daily trades.

Immediately prior to the distribution of the e-mail, NeoMedia was in the final stages of the negotiation process with a well known mobile market industry participant who is a contributor to the newsletter. Mr. Jensen said the agreement being finalized called for the outside party to receive cash and stock from NeoMedia, with the stock to be valued at the closing share price on the day the agreement was signed - which was to be Friday, October 6, which was the same day that the e-mail was distributed.

"NeoMedia received the agreement signed by the industry participant/newsletter contributor almost concurrently with the distribution of the e-mail," he said. "Had we counter-signed - which we did not - the insider/newsletter contributor would have received a significantly higher number of shares as a result of a lower share price, as we believe was precipitated by the content and timing of the e-mail."

E-Mail Points to 'Wrong Market Strategy'

Mr. Jensen said that the e-mail to newsletter subscribers described and focused on mobile search.

"Mobile search is a component of the mobile marketplace that NeoMedia may pursue down the road in order to commercialize and monetize patents we acquired from Loyaltypoint 18 months ago (see "NeoMedia Adds to IP Portfolio by Acquiring Search-Oriented Patents for Mobile Marketing," Business Wire, April 12, 2005)," he said. "But if the purpose of the e-mail was to inform its recipients of what NeoMedia is doing today, in the U.S. and around the world, it pointed them to the wrong market strategy.

"NeoMedia's go-to-market strategy is 'direct connect,' giving brands and companies the power and tools to interact directly with their customers in a 'pull' scenario," Mr. Jensen said. "We know that marketing departments and agencies want to connect their brands and their customers directly, not through a mobile search process, which is completely different from where they are today. The NeoMedia Direct Connect approach, through our qode[R] application and product line, is designed to reward both marketer and consumer. It is NOT a search approach, as the e-mail told its now ill-informed subscribers."

Mr. Jensen said that the Web site for ChangeWave MicroCap Investor says the newsletter "is a potential millionaire-maker service for speculators (not traders) with long time horizons and strong stomachs for volatility."

"The content and timing of Friday's e-mail more than tested the strength of the stomachs of everyone connected with and invested in NeoMedia," Mr. Jensen said. "And it didn't leave a very good taste in our mouths, either."

Mr. Jensen said that "no company likes litigation . . . it's time-consuming, costly and wearying. But, when NeoMedia has gone to the legal system, we have a spotless record. We have come away with licenses and fees, and, in one case, a patent infringer chose to walk away from their business.

"For more than a decade, NeoMedia has worked to build its brand and patent portfolio, while working diligently and honestly to reward shareholder investment and loyalty . . . in the marketplace and, when necessary, in the courtroom," Mr. Jensen said.

"Our efforts to move forward along this honorable and honest path will continue in order to ensure the best possible outcome for the NeoMedia companies and investors," he said.

About NeoMedia Technologies, Inc.

NeoMedia Technologies, Inc. (www.neom.com), is a diversified global company offering leading edge, technologically advanced products and solutions for companies and consumers, built upon its solid family of patented products and processes, and management experience and expertise. Its mobile services group of companies offers end-to-end mobile enterprise and mobile marketing solutions, through its flagship direct-to-mobile-web Qode[R] technology, and ground-breaking products and services from four of the USA's and Europe's leading mobile marketing providers. All NeoMedia Mobile companies benefit from NeoMedia's 27 wireless patents, and the new group is comprised of 160 of the most experienced mobile marketing talent in the world. By linking consumers and companies to the interactive electronic world, NeoMedia delivers one-to-one, permission-based, personalized and profiled dialogue -- anytime and anywhere.

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.

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