ad pepper media demonstrates convincing performance in third quarter 2005, with sustained increases in Turnover, Gross Margin and EBIT

Nuremberg, Hoofddorp, The Netherlands, 20 October 2005

ad pepper media has achieved convincing figures for the third quarter of 2005, with significant improvements for all important indicators. This places the company a further step forward after a slow first six months with the summer quarter being generally calm for seasonal reasons. The positive trend is due in a small part to the latest acquisition of Nedstat Basic, which will, as planned, start to show tangible results in the coming quarters.

ad pepper media has produced convincing figures for the third quarter of 2005, with considerable improvements in all important indicators. That puts the company a further step forward, after a calm first six months, in the summer quarter, generally weak for seasonal reasons. The positive trend is only due in very small part to the latest acquisition of Nedstat Basic, which will, as planned, start to show tangible results in the coming quarters.

ad pepper media publishes its interim report in accordance with the International Financial Reporting Standards (IFRS). The previous year’s results have been adjusted accordingly.

With proceeds from turnover amounting to 6,604 kEUR, ad pepper media achieved an increase of 34 percent in turnover in the third quarter of 2005 (previous year: 4,936 kEUR). At the same time, gross margin rose by 48 percent, running at 3,265 kEUR in the third quarter of 2005 (Q3/2004: 2,213 kEUR). In spite of extraordinary expenses incurred in the third quarter of 2005, EBIT showed a sustained increase to 231 kEUR in the third quarter of 2005 (Q3/2004: 2 kEUR). In the third quarter of 2005, the company thus gained a group result of 417 kEUR before taxes (Q3/2004: 414 kEUR) and 397 kEUR after taxes (Q3/2004: 414 kEUR).

On an accumulated basis, ad pepper media increased its turnover in the first nine months of fiscal 2005 by an encouraging 22 percent to 18,466 kEUR (previous year: 15,111 kEUR), while gross margin increased in the same period by 21 percent to 8,340 kEUR (previous year: 6.882 kEUR). EBIT for the first nine months of 2005 was – 269 kEUR, after 52 kEUR in the same period last year. The accumulated group result is 274 kEUR (previous year: 981 kEUR).

Liquid assets including short-term liquid fixed asset securities and restricted cash equaled 17.1 million EUR on 30 September 2005.

The complete 9-month-report will be published on November 23rd, 2005, and will be available on that date for download at: www.adpepper.com .

In addition, ad pepper media will be presenting its 9-months figures from 9.45 to 10.30 am on November 23rd, 2005 within the scope of an analyst conference to be held during the German Equity Forum in Frankfurt/Main.

Performance figures 2005/2004 according to IFRS:

*Disclosure of previous year’s data adapted
** Including short term liquid fixed asset securities and restricted cash

For further information:
ad pepper media International N.V.
Public Relations
Tel.: +49 (0) 911/ 929 057- 0
Fax: +49 (0) 911/ 929 057- 157
E-Mail: pr@adpepper.com