NeoMedia Expands Micro Paint Repair Business throughout Australia and New Zealand

FT. MYERS, Fla.--June 1, 2004--NeoMedia Technologies, Inc. (OTCBB:NEOM), said today it has taken a major step in the worldwide expansion of its Micro Paint Repair Business Unit by signing a distribution agreement with Micro Paint Systems (Australasia) Limited of New Zealand. The agreement is for exclusive distribution rights to NeoMedia's micro paint repair products in Australia and New Zealand, contingent on a minimum purchase of 500 systems over five years, which would generate approximately $23 million in revenue to NeoMedia.

Charles T. Jensen, president, COO and acting CEO of NeoMedia, said that Micro Paint Systems (Australasia) Limited of Auckland, New Zealand "will offer our proprietary paint and systems under their label starting later this summer."

The agreement gives Micro Paint Systems the exclusive rights to NeoMedia's state-of-the-art paint products and systems to repair cars, trucks and other vehicles in Australia and New Zealand, as long as sales goals are met. He said NeoMedia received an initial payment on signing of the contract, which included the fee for the first four systems, and that an intensive two-week training course for training specialists from Micro Paint will begin next month at the NeoMedia Micro Paint Business Unit's Training Centre in Calgary, Alberta, Canada.

'Aggressive, Doable' Business Plans

Jensen said that both NeoMedia and its new Australasian partner have "aggressive doable business plans. NeoMedia intends to offer our Micro Paint Repair Business Unit's products, systems and services worldwide," he said.

He said the agreement calls for Micro Paint to put 60 systems in place in its first full year operation, ending August 31, 2005, with an additional 90 systems sold in the second year.

NeoMedia's micro paint repair system continues to evolve after more than a decade of research, development, manufacture and use. Chips, scratches, spots, blemishes and oxidized paint can all be corrected with the system, including problems with exotic pearlized paints, metallics and tri-coats. NeoMedia's system and process employs proprietary technology and safe materials, and is free from harmful isocyanates.

'Without Equal Anywhere in the World'

Les Ellison, a director of Micro Paint Systems, said he and his co-directors "believe the proprietary technology developed by NeoMedia is without equal anywhere in the world. We see the opportunity to bring these paints and repair system to Australasia as huge," he said.

"At the NeoMedia Development Centre in Calgary we were impressed with the quality of the paint-matching and other advantages, particularly that the system is isocyanate-free," he said. "And NeoMedia offers an unparalleled repair time turnaround. In our opinions, its system is head and shoulders above anything else in the marketplace."

About NeoMedia Technologies, Inc.

NeoMedia Technologies, Inc. (www.neom.com) is a developer of patented software and technologies which link physical objects directly to targeted online data, with expertise in homeland security and e-authentications NeoMedia markets PaperClick(R) and PaperClick for Cell Phones(TM), a mobile extension of the PaperClick platform, and a Systems Integration Group which specializes in providing expert-based IT consulting, hardware, and software solutions. The NeoMedia Micro Paint Repair Business Unit (formerly CSI International Inc.), is a 13-year-old company based in Calgary, Alberta, Canada, which specializes in products and services for the worldwide micro paint repair industry.