'Frivolous' Copyright Infringement Charges Against NeoMedia are Dismissed

Business Wire, Oct 19, 2005

FORT MYERS, Fla. -- NeoMedia Technologies, Inc. (OTC BB: NEOM) announced today that charges of copyright infringement against the company, a pioneer and innovator in wireless services and patented technologies that provide automatic links to Internet-based information for more than a decade, brought by Scanbuy(TM) Inc., of New York City have been dismissed.

Charles T. Jensen, president and CEO of NeoMedia (www.NEOM.com), said Judge John E. Sprizzo entered an order last week dismissing the charges in the U.S. District Court of the Southern District of New York in New York City.

"From the time of Scanbuy's filing early in 2004, NeoMedia believed their charges to be frivolous and totally without merit," he said. "We are delighted the court agreed and to have this litigation behind us."

Mr. Jensen said three of the four charges levied were dismissed with prejudice, and one without prejudice. In addition NeoMedia's Patent Infringement suit against Scanbuy, also filed in 2004, remains pending. The Complaint for Patent Infringement and Damages, which was originally filed in the U.S. States District Court for the Northern District of Illinois, was moved to the U.S. District Court of the Southern District of New York and also is being heard by Judge Sprizzo.

NeoMedia's Complaint claims infringement by Scanbuy on four valid and subsisting patents owned by NeoMedia - U.S. Patents No. 5,933,829, No. 5,978,773, No. 6,108,656, and No. 6,199,048. It alleges that Scanbuy (www.Scanbuy.com) has manufactured, or has manufactured for it, and has used, or actively induced others to use, technology using images of UPC or Smartcodes taken by camera phones to access individual items and information for consumer-related online services including, but not limited to, movies, music, comparison-shopping, information services, and ring tones.

LScan 'Enjoined from Infringing' on NeoMedia Patents

NeoMedia also announced that LScan Technologies Inc., which it sued for patent infringement in 2004, has been "enjoined from infringing" on NeoMedia patents in an order entered last week by Judge Mary A. McLaughlin of the U.S. District Court for the Eastern District of Pennsylvania. The injunction prohibits LScan from using any technology or application that employs any NeoMedia patent, and follows a default judgment won by NeoMedia against LScan last year.

"NeoMedia's investments in patents and intellectual properties continue to prove their worth, in use and in court, as further demonstrated by the orders issued by judges last week," Mr. Jensen said.

About NeoMedia Technologies, Inc.

NeoMedia Technologies, Inc. (www.neom.com) is a developer and international marketer of software and patented technologies, including PaperClick(R) for Camera Phones(TM), PaperClick(TM) and the PaperClick Mobile Go-Window(TM) which link products, print and physical objects directly to targeted online data. NeoMedia also offers expertise in homeland security and e-authentication applications, and its Systems Integration Group specializes in providing expert-based IT consulting, hardware, and software 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.

PaperClick is a registered trademark, and PaperClick Mobile Go-Window, PaperClick Mobile Marketing Solution, PaperClick Keyword Registry, and PaperClick for Camera Phones are trademarks of NeoMedia Technologies, Inc. Other trademarks are properties of their respective owners.