NeoMedia Selected by USAA For Mail Tracking Project; Project Could Lead to Integrated Document Factory System

Business Wire, July 21, 1999

FORT MYERS, Fla.--(BUSINESS WIRE)--July 21, 1999--

NeoMedia Technologies Inc. (Nasdaq SmallCap:NEOM) has been selected by United Services Automobile Association ("USAA") to supply a document tracking system for its print-to-mail process that is designed to allow the San Antonio-based insurance and financial services association to track electronically every piece of mail it produces.

Dean Karkazis, vice president and general manager of Integrated Technology Solutions for NeoMedia said: "We are delighted that USAA has selected NeoMedia to deliver this project. Our ability to provide USAA a manufacturing process methodology with out Integrated Document Factory(TM) solution we believe continues to validate NeoMedia as an innovator and leader in improving production print-to-mail operations."

Overseeing the project for NeoMedia is Tom Traylor, director of Document Production Technology. He stated that the system incorporates a number of powerful components from NeoMedia and its partners.

"Working as a team with our vendor-partners and USAA project management, we envision a system that will help USAA effectively and accurately communicate with more than 3.3 million members who each receive as many as 30 pieces of correspondence from USAA each year."

Although the parties will not announce the exact figures, if successful, NeoMedia expects revenues from the project to equal nearly 8% of overall revenues reported by NeoMedia for the first quarter of this year. The contract calls for the project to be concluded by the end of August 1999.

NeoMedia was founded in 1989. Its common stock trades on the NASDAQ Small Cap Market under the symbol NEOM. NeoMedia is the creator of IDOCs(TM) products -- unique Internet software that links physical objects, such as paper, to corresponding electronic information: Linking the Worlds of Print and Electronic Media(SM). The Company also provides proprietary software for document management and production systems, as well as the migration of programs and databases from closed system to open system platforms including Year 2000 conversions and solutions.

USAA has been serving present and former members of the U.S. military and their families for more than 77 years as one of America's leading insurance and financial services companies. The association, well known for its exceptional customer service, offers its 3.3 million members and associate members a full range of insurance, banking and investment products and services designed to help them meet their financial security needs. Headquartered in San Antonio, Texas, with offices throughout the United States and Europe, USAA owns or manages assets of more than $56 billion.

This press release contains certain 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.

"Integrated Document Factory" and "IDOCs" are trademarks, and "Linking the Worlds of Print and Electronic Media" is a service mark of NeoMedia Technologies, Inc.

This release is available on the NeoMedia Website: www.neom.com