US Check To Deploy NeoMedia Software To Combat $12 Billion Check Fraud Problem.

FORT MYERS, Fla.--(BUSINESS WIRE)--Dec. 4, 1997--Check fraud is a $12 billion per year problem and growing at alarming rates, according to a recent Bank Administration study.

In an effort to stop this growing threat to the second most popular form of payment, US Check Company, Inc., and NeoMedia Technologies, Inc., (NASDAQ Small Cap:NEOM) today announced that they have combined their technologies to produce what is believed to be the first fraud-proof, intelligent documents. These documents combine NeoMedia's Secure Documents (SecureDocs(tm)) technology with US Check's UV Smart(r) product lines.

US Check Co. is the leading provider of non-visible ink overlay technology for authentication and document image processing. The company's patented UV Smart(r) technology, introduced last year, is rapidly becoming the de facto standard for detecting counterfeit and altered checks.

UV Smart(r) is already in use by The Chase Manhattan Bank, Barclays Bank USA, Texas Commerce Bank, Franzbank and over 475 other financial institutions and corporations.

"NeoMedia's SecureDocs(tm) technology, combined with UV Smart(r) represents a significant breakthrough in real-time document authentication," said Christopher P. Dowdell, Vice President at Chase and Chairman of the Accredited National Standards Committee (ANSI) X-9B at last month's BAI Combating Check Fraud Conference in Orlando, Florida. ANSI X-9B sets the standards for checks and how they are processed through the banking industry. Mr. Dowdell added "in an automated image processing environment, UV Smart(r) is required to verify if a check is real or has been altered, notwithstanding all other existing security features."

Earlier this year, NCR Corporation and US Check Co. jointly announced the availability of NCR's popular 7780 mid-range check transport with UV Smart(r) technology. NCR is the world's leading supplier of check image processing systems to the financial industry.

"The addition of NeoMedia Technologies' secure document technology and associated software provides an unparalleled opportunity to virtually eliminate check fraud as we know it," said Jonathan D. Greene, President and Chief Executive Officer of US Check Company. The company plans to start using NeoMedia's software on all UV Smart(r) enhanced documents manufactured by its licensees, which include several of the major security printers in the U.S. There were over 65 billion checks written in 1996 and there is an estimated 2 to 3 percent compound annual growth rate through the year 2010. The potential market for UV Smart(r) enhancements exceeds $1 billion per year.

NeoMedia has developed its own intelligent documents technology (idocs(tm)), which allows printed documents to be read by machines such as reader/sorters or scanners equipped with NeoMedia's software. The idocs(tm) application for Secure Documents is a transformational technology that enables positive authentication and verification of all the data elements that define the financial instrument when it was first issued. These informational components are attached to the check as an encrypted portable data file which, through NeoMedia's software, unlocks its information at the point of capture, acceptance or encashment without having to refer to an external database for confirmation.

US Check provides document authentication and image processing enhancements to the financial services industry through licensing arrangements to manufacturers of hardware, software and printed media. For more information contact U.S. Check at 301-657-2992 or on the World Wide Web at www.uscheckco.com. UV Smart(r) is a registered trademark of United States Check Company, Inc. All rights reserved.

NeoMedia was founded in 1989. It provides proprietary software for document management and production systems, the migration of programs and databases from closed system to open system platforms, Year 2000 conversions and intelligent document solutions to bridge the gap between print and electronic media. -0-

Except for historical information, this press release contains certain forward-looking statements that involve risk and uncertainties which may cause actual results to differ materially from the statements made. Such factors include, but are not limited to, changing market conditions, the establishment of new corporate alliances, the impact of competitive products and pricing and other risks detailed from time to time by the Company or in its filings with the U.S. Securities and Exchange Commission.

CONTACT: For NeoMedia: For US Check:

Chuck Jensen Jonathan D. Greene

NeoMedia Technologies, Inc. US Check Company, Inc.

941-337-3434 301-657-2992

Robert Kneeley

RKC Communications

954-351-1976

email: [e-mail]