Mr. George Fleming reports

SOMEDIA NETWORKS FILES FINANCIAL RESULTS FOR Q1 2015 AND ANNOUNCES NON-BROKERED FINANCING

SoMedia Networks Inc. has filed financial results for the three-month period ended March 31, 2015.

The company posted quarterly sales of $384,503, a record for the company, with sales 15 per cent higher than the previous best month. These results compare with sales of $173,764, up 121 per cent over the previous year-ago quarter and 37 per cent over the previous quarter. Sales backlog also increased to a record $1,235,713, up 25 per cent over the previous quarter, while revenue grew by more than 37 per cent over the prior-year revenue, achieving a record of $124,816, up 47 per cent over fourth quarter of 2014.

Highlights:

• Record sales were posted in the first quarter 2015, with an increase of 121 per cent over the previous year, totalling $384,503.
• Revenue exceeded historical records, up 46 per cent over fourth quarter 2014 and 37 per cent in the year-ago quarter.
• Sales backlog exceeded $1.2-million, up 25 per cent over the previous quarter.
• Growth in initial sales grew by 96 per cent over the year-ago quarter, reaching $112,843.
• Average order value grew to $5,013, an increase of 73 per cent over the year-ago quarter, building on the year-over-year growth of 351 per cent achieved in the prior quarter.
• The company redeveloped and launched an integrated news and branded content platform.
• It completed integrations with more than 20 major SaaS marketing platforms, including Marketo, Oracle-Eloqua and Salesforce-ExactTarget.
• The company appointed Derek Sather as consulting chief revenue officer.

                                        SELECTED FINANCIAL INFORMATION                  
                                           (in Canadian dollars ($))

                                     Quarter ended                Quarter ended                Quarter ended
                                    March 31, 2015               March 31, 2014               March 31, 2013

Total revenues                            $124,816                      $91,209                      $40,947
Employment expenses                        655,174                      584,695                      744,343
Other operating expenses                   380,587                      388,340                      449,817
Non-operating expenses                     108,383                       50,156                      236,041
Comprehensive loss for the period        1,019,329                      931,982                    1,389,255
(Loss) per share (basic and diluted)         (0.02)                       (0.03)                       (0.12)

Management changes

The company also announces that Ben Pickering has resigned as president, co-chief executive officer and a director, effective immediately. George Fleming, the company's founder, will take over the role of president and CEO of the company. As well, Colin Osing has resigned as vice-president of marketing, effective immediately.

In addition, Derek Sather has joined the company as consulting chief revenue officer and will assist the company in the development of content marketing and demand generation programs plus the implementation of advanced CRM and sales management systems and processes. Mr. Sather has over 15 years of senior sales leadership experience. Most recently, he was the chief revenue officer at Mobify, an enterprise SaaS platform that provides Internet retailers with mobile shopping solutions. While at Mobify, he provided global leadership of the sales and marketing teams and architected an advanced content marketing, demand generation and sales automation program. Prior to that, he was chief revenue officer at Recombo, a SaaS platform that provides rapid customer on boarding.

Financing

In addition, the company is pleased to announce a non-brokered private placement of 1,577,000 special warrants at a price of 26 cents per special warrant, representing aggregate gross proceeds of $410,000. Each special warrant entitles the holder thereof to acquire at any time after the closing date of the offering, for no additional consideration, one unit of the company, with each unit composed of one common share of SoMedia and one-half of one common share purchase warrant of SoMedia. Each warrant will entitle the holder thereof to purchase one common share at an exercise price of 35 cents per common share for a period of 24 months following the closing date. The offering is fully subscribed and will close upon receipt of TSX Venture Exchange approval.

All unexercised special warrants will be deemed to be exercised, without payment of additional consideration or further action, on the earlier of: (i) the third business day following the day upon which SoMedia obtains a receipt for a final prospectus qualifying the underlying common shares, the underlying warrants and the common shares of the company underlying the warrants from the securities regulatory authority in each jurisdiction where the final prospectus is filed; and (ii) the date that is four months and one day following the closing date. It is intended that the final prospectus will be filed in Ontario, Alberta, British Columbia and such other jurisdictions as SoMedia may decide.

The company may pay finders' fees in connection with the offering, subject to compliance with the policies of the regulatory authorities. SoMedia plans to use the net proceeds from the offering for working capital and general corporate purposes.

From the date of issue, subject to obtaining a receipt for the final prospectus in the qualifying jurisdictions, the underlying securities will be subject to a four-month-and-one-day hold period as required by Canadian securities laws.

We seek Safe Harbor.