NeoMedia Secures $5 Million in Financing.

FORT MYERS, Fla. -- NeoMedia Technologies, Inc. (OTC BB: NEOM), an innovator in market-driven technologies, announced today that it has secured $5 million in financing through the sale of a secured convertible debenture to Cornell Capital Partners, LP.

David Dodge, vice president and CFO of NeoMedia, said the $5 million was originally due upon registration of shares underlying the previous $27 million convertible preferred agreement, but was moved forward and changed from a convertible preferred stock sale to a convertible debenture by both parties. The debenture bears an interest at a rate of 10% per annum, is convertible at Cornell's option into shares of NeoMedia common stock at a price equal to 90% of the lowest closing bid price for the 30 days prior to conversion, and matures three years from issuance.

Mr. Dodge also said that, in connection with the $5 million secured convertible debenture, NeoMedia and Cornell entered into a Pledge and Security Agreement, pursuant to which NeoMedia pledged all of its assets as security for the convertible debenture. In addition, he said that NeoMedia issued 125 million warrants to purchase shares of common stock to Cornell with exercise prices between $0.05 and $0.25 per share, and repriced an additional 85 million warrants previously issued to Cornell with exercise prices ranging from $0.25 to $0.50 to new exercise prices between $0.10 and $0.15.

With this tranche of the funding agreement completed, Mr. Dodge said NeoMedia can receive up to an additional $36 million from Cornell upon exercise of all warrants issued or repriced under this arrangement, if and when the stock price is high enough for the warrants to be exercised.

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 NeoMedia Mobile group of companies offer end-to-end mobile enterprise and mobile marketing solutions through its flagship qode(R) direct-to-mobile-web technology and ground-breaking products and services from four of the leading mobile marketing providers in the U.S. and Europe. By linking consumers and companies to the interactive electronic world, NeoMedia delivers one-to-one, permission-based, personalized and profiled dialogue - anytime and anywhere.

The qode suite of easy-to-use, market-driven products and applications are based on a strong foundation of patented technology, comprising the qode (www.qode.com) platform, qode(R)reader and qode(R)window, all of which provide One Click to Content(TM) connectivity for products, print, packaging and other physical objects to link directly to specific desired content on the mobile Internet.

NeoMedia's recently acquired companies and offerings include 12snap AG (www.12snap.com), a Munich, Germany-based award-winning leader in mobile marketing and entertainment applications; Mobot, Inc. (www.Mobot.com), a Lexington, Massachusetts-based pioneer in mobile visual recognition technology; Sponge Ltd. (www.spongegroup.com), a London, UK-based leader in developing and implementing mobile marketing applications and content delivery; and Gavitec AG - mobile digit (www.gavitec.com), a Wurselen, Germany-based leading provider of mobile technology and marketing solutions.

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.

qode is a registered trademark, and qodereader, qodewindow and One Click to Content are trademarks of NeoMedia Technologies, Inc.