NeoMedia’s Sponge Subsidiary Provides Mobile Application for U.K.  Company ‘One’

FORT MYERS, FLA., AND LONDON, August 03, 2006 -- Mobile marketing specialist Sponge, a division of NeoMedia Technologies, Inc. (OTC BB: NEOM), is providing its “text to win” application for an international mobile promotion staged by One (brand) bottled water (www.onewater.org.uk) to bring clean water to Africa.

One Water is an example of “ethical” (cause-related) marketing that is gaining considerable momentum in the U.K. and elsewhere in the Western world. All the profits from sales of One Water – which is sold at leading U.K. retailers including Waitrose, Morrisons, Co-Op and Total – go to building unique roundabout PlayPumps overseas, which will improve people’s lives by providing free, clean water for drinking, cooking, and washing.

One supports the Roundabout charity (www.roundabout.co.za), which installs PlayPumps in African villages, replacing traditional hand pumps. PlayPumps work through the rotational movement created by children playing on them, much like a merry-go-round.  As the children play, the merry-go-round drives a pump to extract water, which is then channelled into large storage tanks. The PlayPumps are so efficient, that there is usually excess water available for irrigation purposes, which was not possible with hand pumps.

NeoMedia’s Sponge became involved when One Water approached the London-based leader in mobile marketing applications and content delivery for help with its summer promotion -- to win a trip to Africa, said Jessie Britton of Sponge.  “NeoMedia and Sponge were delighted to support this important cause by donating our expertise and giving One Water full access to our ‘Text to Win’ mobile interactivity, to help them build brand awareness and conduct their promotion,” she said.

The grand prize in the promotion is a trip to Africa, where the winner will help build and install a roundabout PlayPump.  The August through October promotion is featured on 1 million-plus bottles of One Water, a national outdoor advertising campaign, an online campaign, and e-mail.

One Water founder Duncan Goose credits Sponge with “providing the finishing touch we needed for this promotion.  We approached Sponge because of the company’s fantastic reputation in handling high traffic promotions, and we were delighted when they not only agreed to work with us, but also donated some very valuable marketing support.”

Martin Copus, COO of NeoMedia and president of its mobile business unit, said, “It is exciting and worthwhile to see mobile technology being used to help improve people’s lives in this way. We salute the wonderful initiative of One Water and their partner Roundabout.”  

About Sponge Ltd.
Sponge, a NeoMedia Technologies company (OTC BB: NEOM), is the U.K. market leader in providing mobile applications to agencies and media groups, and has gained recognition as one of Europe's top independent developers of mobile applications and content. Founded in 2001, Sponge counts among its clients more than 40 agencies, including WPP, Aegis and BBH, and supplies services to over 100 world-class brands, including Coca-Cola, Heineken, Diageo, Walker’s and Lynx/Axe. Sponge also supplies a range of mobile services to media groups, including News International, Trinity Mirror, Endemol and IPC. For more information, visit www.spongegroup.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 NeoMedia Mobile group of companies offers end-to-end mobile enterprise and mobile marketing solutions, through its flagship qode® direct-to-mobile-web 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 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, qodereader™ and qodewindow™, all of which provide One Click to Content™ connectivity for products, print, packaging and other physical objects to link directly to specific desired content on the mobile Internet. 

Along with Sponge, NeoMedia’s recently acquired companies include 12snap AG (www.12snap.com), Mobot, Inc. (www.Mobot.com), a Lexington, Massachusetts-based pioneer in mobile visual recognition technology, and Gavitec AG - mobile digit (www.gavitec.com), a Würselen, 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 and PaperClick are registered trademarks, and qodereader,  qodewindow and One Click to Content are trademarks of NeoMedia Technologies, Inc.  Other trademarks are properties of their respective owners.

Press Contacts: 
Martin Copus                
NeoMedia Technologies, Inc.                  
+(239) 246-9889 or +44 7766 801818                
[email protected]                   

David A. Kaminer
The Kaminer Group
+(914) 684-1934
[email protected]

Suzie Phillips
Bluebear
+(44) 1707 320274
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