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Release: Rhythm NewMedia Launches the World’s First Interactive iPhone Video Ads

Lincoln and Pepsi Sign Up as First Advertisers on vSNAX Videos iPhone and iPod touch App

MOUNTAIN VIEW, Calif., September 30, 2008 –Rhythm NewMedia, the worldwide leader in mobile video advertising, today announced a new breakthrough iPhone video ad unit, which for the first time provides in-video interactivity. The iPhone’s unique touch characteristics allowed Rhythm to overlay TV style ads with touchable buttons that activate a call, SMS, a website, a map of local dealers, or another video. Rhythm has already seen strong demand for mobile video ads and expects demand to accelerate with the advent of their new ad unit. Rhythm works closely with advertisers to create iPhone optimized touchable interactive video ads and supporting mobile sites.

The first iPhone application to run these new ads is vSNAX Videos. vSNAX features free high quality videos from more than 25 premium media partners. Short, five to 30 second, pre and post rolls are inserted dynamically, with precise individual frequency control.

Lincoln and Pepsi are the first advertisers to use this revolutionary new ad unit and their ads are currently running on vSNAX. In working with Rhythm, Lincoln aimed to reach affluent and tech focused consumers, similar to the iPhone demographic, because the Lincoln MKS luxury sedan has a host of advanced tech features. The Lincoln mobile video easily provides one-click access to their iPhone optimized website where interested consumers can get more information on the all new 2009 Lincoln MKS luxury sedan. This iPhone optimized website also allows interested consumers to watch more videos and find out more about the car’s features. The ads are frequency capped, so that a user will only see an ad a certain number of times.

“We’re confident and excited about working with Rhythm because they have a proven track record and extensive experience with mobile video. Rhythm has the technology in place to deliver rich, interactive and engaging Lincoln video ads to iPhone users,” said Brian Bos, Senior Vice President, Convergence Director for Mindshare, ad agency for the Lincoln brand.

“We’re thrilled about having created the world’s first touchable mobile video ads that elegantly balance a graceful consumer experience and the needs of advertisers. Further, we’re excited to offer iPhone inventory to our advertisers as the iPhone user base represents the most affluent and influential demographic of mobile phone users,” said Ujjal Kohli, chief executive officer of Rhythm NewMedia.

About Rhythm NewMedia & vSNAX Videos

Rhythm NewMedia is the leading rich media mobile ad network. With over 50 million mobile video ads served in partnership with 60 media companies, seven top tier mobile operators and more than 50 top name brand advertisers, Rhythm is number one in mobile video advertising. Rhythm’s services include ad sales, ad serving, mobile site design, video serving, application development, and hosting & management. Rhythm recently launched vSNAX Videos, a free entertainment application for Apple’s iPhone and iPod touch, to showcase these capabilities for Rhythm’s media and operator customers. vSNAX elevates mobile video viewing to a whole new level, providing an on-demand TV-like experience never seen before on the iPhone. vSNAX is available exclusively in the US and can be downloaded for free from Apple’s App Store on iPhone and iPod touch or at . Rhythm recently released v1.4 of vSNAX Videos that improves quality, performance and adds additional channels. Rhythm investors include The Carlyle Group, Lightspeed Venture Partners, Morgenthaler Ventures and Rembrandt Venture Partners. Rhythm is headquartered in Silicon Valley. For more information please visit:

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