NeoMedia Signs LOI with Master Distributor for Micro Paint Repair in Scandinavia

FT. MYERS, Fla. & OSLO, Norway--June 20, 2005--NeoMedia Technologies, Inc. (OTC BB: NEOM), said today that it has signed a Letter of Intent to bring its NeoMedia Micro Paint business to Scandinavia.

The non-binding LOI, signed with the WI-THO AS of Oslo, Norway, calls for WI-THO to become the exclusive master distributor of NeoMedia's micro paint repair products, systems and licenses to automotive service facilities throughout Denmark, Sweden and Norway.

When finalized, the agreement calls for WI-THO AS to pay $500,000 for NeoMedia micro paint repair products and its exclusive distributor license.

Filling a Need in Scandinavia

"Harsh weather, narrow roads and ever-increasing traffic have created a need for fast and permanent repairs of paint damage to automobiles in Scandinavia," said WI-THO AS Director Knut Thorenfeldt.

"At the NeoMedia Micro Paint Repair Training Center in Fort Myers, the leaders of WI-THO AS were very impressed with the quality of the repairs and the short time required, which we believe will enable us to present a differentiated and a unique solution throughout Scandinavia," he said.

About NeoMedia Micro Paint Repair, Inc.

NeoMedia Micro Paint Repair, Inc. (www.micropaint.net) is a business unit of NeoMedia Technologies, Inc. Formerly known as CSI International Inc., the company specializes in products and services for the worldwide micro paint repair industry, including a system and processes utilizing proprietary technology.

About WI-THO AS

Based in Oslo, Norway, WI-THO AS is a new company formed to specialize in products and services involving micro paint repairs for automobiles in Denmark, Sweden and Norway.

About NeoMedia Technologies, Inc.

NeoMedia Technologies, Inc. (www.neom.com), is a developer and international marketer of software and patented technologies, including PaperClick(R) (www.PaperClick.com), PaperClick for Camera Phones(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 For Camera Phones and PaperClick Mobile Go-Window are trademarks of NeoMedia Technologies, Inc. Other trademarks are properties of their respective owners.