CoreMedia Shows Strong Growth and Announces Profit for 2003/2004 Fiscal Year

- Strong Results Especially for its Digital Rights Management offerings

CoreMedia, the content technology experts, today announced positive results for 2003/2004 fiscal year. Audited results demonstrate a significant profit from a total revenue of US$14 million (€11 million) for the fiscal year ended June 30, 2004. In all four quarters, CoreMedia was able to increase both its revenues and profitability due to an increase in new clients across all product areas, especially in the field of digital rights management (DRM). DRM made up nearly 20 percent of the overall revenues, making CoreMedia the year’s biggest newcomer in the mobile DRM market. Overall, the company’s robust organic growth represents an increase in revenue of nearly 2000 percent over five years ago, making CoreMedia one of Germany’s fastest-growing companies*. Earlier this year, CoreMedia received AT Kearney’s "Best Innovator" award as Germany’s most innovative company. It comes as no surprise to analysts that the company said it has started the next fiscal year with great optimism and momentum.

As a leading provider of high-end content management solutions, CoreMedia has won a number of high-profile new clients this year, including Germany’s largest public television station ARD, European culture television station ARTE, the national German railroad Deutsche Bahn, Internet portal GMX and leading international multi-utility company RWE. In addition to winning new clients, CoreMedia expanded and intensified business with existing clients: Long-time customer T-Online now offers a convenient ASP solution based on CoreMedia’s technology; Wincor/Nixdorf, SEAT and other companies are implementing new Internet services worldwide. The federal German government has so far introduced CoreMedia’s technology to 20 public agencies, among them the Bundesrat (the German upper house), the Federal Ministry of Economics and Labor, the Federal Press Office and the Foreign Office. All of Germany’s 137 embassies worldwide will work with CoreMedia technology.

CoreMedia also further extended its global partnerships. Joining Capgemini, EDS, IBM and T-Systems on the list of CoreMedia’s partners, Hitachi is now working with CoreMedia’s Smart Content Technology in Japan, the leading telecommunications market. In Germany, CoreMedia expanded its network of local partners by another 10, now reaching 500 consultants with CoreMedia expertise.

"We have achieved healthy and profitable growth through the development of innovative products and a highly-focused strategy, which has enabled us to establish ourselves as a forward-looking solution provider in demanding international markets,” said Sören Stamer, Founder and CEO of CoreMedia. "To achieve this goal, we had to continue the process of enhancing our award-winning Smart Content Technology and to restructure our sales force. Today, we hold a leading position in the global content technology market. I expect continued innovation and growth for CoreMedia as we begin our new financial year. The need for sophisticated solutions for intelligent use of digital content is larger than ever.”

Expanding Expert Resources

To meet the escalating demand and manage further growth, CoreMedia increased its number of employees to 120 over the past months – and plans 20 additional hires by the end of the year. The company also appointed two new executives to the management board.

By hiring the Open Mobile Alliance’s Vice Chair of the DRM Group, Willms Buhse, PhD, as CoreMedia’s head of product and marketing last November, the company not only underlined its continued and active support of the Open Mobile Alliance (OMA), the leading standard association in the telecommunications industry, but also strengthened its role in the DRM world.

New Chief Financial Officer

The board of directors appointed Klemens Kleiminger, PhD, as CFO to CoreMedia’s executive board as of October 1, 2004. Dr. Kleiminger replaces Daniel Rosenthal, who is leaving the company due to family reasons after four very successful years. Dr. Kleiminger has worked in Human Resources, Organization and Strategy at Roland Berger, a leading German strategy consultants firm. He is the author of various scientific papers on the topic of human resource management.

New Director of Sales

With the start of the new fiscal year, Florian Grebe assumed management oversight of the sales department. In the position of Director, Sales, Mr. Grebe will continue the company’s successful sales strategy with an international sales force as well as global and local partners. As a successful Key Account Manager at CoreMedia, Mr. Grebe has played a crucial role in the successful implementation of the sales strategy in the past.

About CoreMedia – The Content Technology Experts

CoreMedia AG is a leading provider of state-of-the-art standard software for content management systems (CMS), digital rights management (DRM) and multi-channel delivery. Specializing on the high-end market for demanding content technology, including mobile service delivery, CoreMedia is an active member of the Open Mobile Alliance (OMA) and a leading mobile DRM provider.

Founded in 1996 and headquartered in Hamburg, Germany, CoreMedia employs over 120 employees and maintains a global network of partners that includes 500 professional consultants. CoreMedia combines the innovative power of a university spin-off with the sustainability of a founder-operated business and the stability of Deutsche Telekom as main shareholder.

With over 1,000 sold licenses, CoreMedia is one of today’s most successful software companies worldwide. Leading enterprises have implemented CoreMedia Smart Content Technology for sophisticated service delivery and integrated information management. Over 100 of the foremost companies in 20 countries within the telecommunications, media, industrial, financial and public service sectors have successfully employed CoreMedia’s technology, among them industry leaders such as Bertelsmann, Continental, DaimlerChrysler, Deutsche Telekom, Debitel, O2, EPCOS, NEC/Mitsubishi, Nokia, SEAT, T-Mobile, T-Online, Vodafone, SEAT, RWE, Wincor Nixdorf, and the German government.