NeoMedia’s 12snap Enters Middle East and North Africa Markets through Distribution Agreement with Telecom Arabia

Fort Myers, Fla., and Munich, Germany, April 26, 2006, 12snap AG, an award-winning leader in mobile marketing and entertainment applications, and a unit of NeoMedia Technologies, Inc. (OTC BB: NEOM), today announced that its successful mobile marketing applications – 12cam, 12yella and 12pixmix – will be available in 17 countries in the Middle East, North Africa and Turkey through a distribution agreement with Egyptian-based telecommunications firm Telecom Arabia, a specialist in marketing and distribution of mobile phone applications and software in the Arab countries.

Under the terms of the agreement, Telecom Arabia will pursue marketing and sales opportunities and coordinate pricing and distribution strategies to various channels, including mobile phone retailers and network providers. Additionally, Telecom Arabia will help to develop local product interfaces and ensure compliance with copyright regulations in each of the 17 countries.

Through this collaboration with Telecom Arabia, 12snap adds a significant new region for its mobile applications – the Middle East and North Africa are among today’s fastest growing mobile phone markets in the world (Source: IDATE Mobile 2006 Report).

“12snap’s entry into the Middle Eastern, African and Turkish markets is another milestone for our internationalization strategy,” said Ulrich Pietsch, managing director of 12snap Germany GmbH. “This is an excellent example of the advantages of being a part of NeoMedia.”  With approximately 80 employees, the Munich-based company makes up the largest unit of NeoMedia Technologies, which acquired 12snap in February of this year.

12cam, 12yella and 12pixmix
12cam provides mobile phone users with the possibility to enrich pictures taken with their mobile phone cameras by combining them with predefined characters.  12yella is a phone call personalization center which allows users to select from a variety of professionally recorded sound bites which can be played by pressing the keys on their mobile phones during a telephone conversation. 12pixmix allows mobile phone users to freely compose a mosaic of their stored images as wallpaper.

About 12snap
12snap AG, a NeoMedia Technologies company (OTC BB: NEOM), is an expert in developing and implementing innovative marketing campaigns and entertainment applications for mobile phones. Founded in 1999, 12snap utilizes the creative and technological opportunities inherent in mobile phones to create award-winning campaigns by efficiently combining its know-how in mobile applications, mobile loyalty and mobile marketing. 12snap is the only mobile marketing company in the world to be awarded Lions at the prestigious Cannes advertising festival (4 Lions in total), while in 2005 it was ranked in the Red Herring 100 most innovative technology companies in Europe. As a pioneer and one of the leading European providers of mobile marketing, 12snap provides services to companies such as McDonald's, Lufthansa, MTV, Coca-Cola, Ferrero, adidas, Unilever and Gillette. 12snap has its headquarters in Munich and branches in Düsseldorf, New York, London, Milan, Stockholm and Vienna. For more information about 12snap, please visit www.12snap.com.

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® technology, and ground-breaking products and services from 4 (shortly to be 5) 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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