PHRM.L Regulatory News (PHRM)

11 Nov 2005 07:00

11 November 2005 121Media, Inc. COMPLETION OF METROPOLITAN WIRELESS ISP AGREEMENT Further to the statement in the interim results regarding the good progress onits Pagesense Javascript technology, 121Media, Inc. ("121Media"), the onlinecontextual advertising company, today announces the signing of its firstagreement with a metropolitan wireless ISP.Metropolitan wireless ISPs aim to provide broadband services to a city'sinhabitants via the installation of a citywide wireless network. Thisparticular opportunity aims to make use of PageSense to provide an effectiveadvertising revenue stream, thereby making the service free.121Media's PageSense Javascript application analyses the meaning and context ofall web pages being viewed by anybody connected to the free city network. Thisin turn allows for highly targeted advertising, which maximizes revenue peradvertisement, thereby limiting the number of ads. It is the Directors beliefthat broadband connectivity will increasingly migrate to wireless and beprovided free. Furthermore, it is also the Directors belief that the freeconnectivity will be financed by advertising.In addition to wireless ISPs, an important element of 121Media's growthstrategy entails recruiting wired ISPs as distribution partners for itsPageSense Javascript application, allowing targeted advertisements to bedelivered to that ISP's user base. In return, the ISP earns a share of theadvertising revenue. This relationship model is made possible by 121Media'sprecision targeting, which results in an acceptable level of advertising beingshown to users with the potential to generate value for the advertiser, andtherefore the ISP. As pricing declines for wired connectivity, 121Mediabelieves that ISPs will increasingly turn to highly targeted, highly selectiveadvertising to counteract declining margins. The company is pleased withprogress to date on this front.There are already 38 cities across the USA developing metropolitan wi-fiprojects.Kent Ertugrul, Chief Executive of 121Media, said:"We are delighted to announce this first test of the Pagesense Javascripttechnology on a metropolitan wi-fi network. The inclusion of our smartadvertising on the network will allow wireless ISPs to offer a free servicethrough advertisements, a model similar to that of the free televisionstations."We expect the validation provided by this test to accelerate the availabilityof free broadband wireless access. We are currently in discussions with anumber of other ISPs about similar agreements." -Ends- For further information please contact:121Media 0870 405 7727 Kent Ertugrul, Chief Executive Hogarth Partnership 020 7357 9477 John Olsen / Edward Westropp END121 MEDIA INC