NeoMedia to Create iPOS(TM) Enabled by PaperClick; Interactive Point of Sale is Latest Innovation in Retail Advertising and Promotion.

LONDON & FORT MYERS, Fla. -- NeoMedia Technologies, Inc. (OTC BB: NEOM), an innovator in market-driven technologies, and new co-marketing partner The Valley Group, a leading POP (point-of-purchase) specialist based in the U.K., today announced the launch of iPOS(TM) -- interactive point-of-sale -- via the introduction of the patented PaperClick(R) technology -- delivering direct-to-mobile Web connectivity -- to the world of retail.

"The creation of iPOS represents a leap forward in retail advertising and promotions," said Martin Copus, COO of NeoMedia and head of the mobile business unit. "Now PaperClick provides the ability for any piece of POS/POP to link directly to the mobile Internet, with all the multimedia possibilities the Web offers."

PaperClick and The Valley Group will unveil iPOS at the In-Store Show, the pre-eminent trade event for the retail industry, at Earls Court, a world renowned exhibition venue in London, England, June 13-15.

With PaperClick enabling iPOS, retailers and marketers will now be able to make an immediate impact on consumer behavior. Consumers simply use the camera application on their mobile phone or PDA to click on a 2-dimensional smartcode printed on the point-of-sale material, and they will be directly taken to the marketer's mobile Internet site. The marketer could offer instant coupons, value-added promotions, product information (say a recipe for a food item) -- even mobile payment! In order to maximize coverage of handset types, PaperClick also offers keyword or product code entry into a search-style window, which takes the consumer directly to the same destinations on the mobile Internet.

"PaperClick represents one click connectivity to unlimited marketing and promotional possibilities, right when the consumer is at the point-of-purchase," said Mr. Copus. "And, PaperClick can make any piece of POS material interactive."

iPOS will be demonstrated by NeoMedia and The Valley Group at the In-Store Show and, each afternoon, experts from NeoMedia will present at the In-Store digital workshops.

"The Valley Group aims to make POP simple, effective and rewarding, and our relationship with NeoMedia will deliver just that," said James Haggas, sales director for The Valley Group. "We pride ourselves in being one of the few POP companies that deliver cost effective retail displays, while also adding value with retail solutions that help our customers compete effectively in the ever-changing retail environment. Our partnership with NeoMedia further offers customers a new means of effectively communicating with consumers, right at the point of purchase through mobile phones. Visitors to In-Store will be able to interact with PaperClick themselves and see just why this new technology will be the communication medium of the future," 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 PaperClick(R) technology, and ground-breaking products and services from 4 (shortly to be 5) of the USA's and Europe's leading mobile marketing providers. 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 PaperClick suite of easy-to-use, market-driven products and applications are based on a strong foundation of patented technology, comprising the PaperClick (www.PaperClick.com) platform, PaperClick for Camera Phones(TM) and the PaperClick Mobile GoWindow(TM) and CodeWindow(TM), 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 web.

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.

About The Valley Group

For well over 100 years The Valley Group (www.thevalleygroup.com) has enjoyed a reputation for innovation, great design, quality production and value for money. Since pioneering the process of printing onto plastics, the company has always led the field, introducing vacuum formed POP display into China and won Europe's largest POP contract for the design, manufacture and distribution of Sega Dreamcast. Valley was one of the first POP companies to offer complete in-house design and development services to create our award-winning displays. As proud winners of an elusive platinum POPAI award for overall performance, it continues to lead the field by bringing innovation and creative concepts that add style and performance to the highly competitive POP environment.

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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