SoMedia Releases Results for the Third Quarter of 2013

SoMedia Networks (TSX-V:VID) (“SoMedia,” “the Company”), the pioneer of globally scalable cloud-based video production solutions, today announced its results for the three and nine month periods ended September 30, 2013 (the “third quarter” and “first nine months,” respectively).

HIGHLIGHTS

• Added 1,056 new reseller partners during the third quarter
• Recorded video orders from 268 separate reseller partners over the first nine months, a 103% increase over the number of total active reseller partners in all of 2012
• Officially launched the Enterprise, a Platform designed specifically for larger clients
• Subsequent to the conclusion of the quarter, appointed Ben Pickering as President and COO
• Subsequent to the conclusion of the quarter, officially launched an integrated Video Production, Marketing and Analytics Platform
• Subsequent to the conclusion of the quarter, announced that reseller partner signups had grown to more than 4,000, a 688% increase in reseller partners over the last twelve months

FINANCIAL PERFORMANCE

KEY PERFORMANCE INDICATORS

^{The measures described in this table are not intended to be measures that should be regarded as an alternative to other financial operating performance measures prepared in accordance with IFRS. Those measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. They are provided to assist investors in determining the Company’s ability to generate profitability from its operations and to evaluate its financial performance. For further descriptions of these terms, please refer to either the Company’s Management’s Discussion and Analysis for the period or to the ‘Definition of Key Performance Indicators’ section at the conclusion of this document.}

COMMENTARY

During the third quarter, SoMedia continued to build momentum by executing on its reseller sales and market development strategy.

The key aspects of the reseller strategy are:

• Optimize partner implementation & activation processes
• Identify and target vertical opportunities for our enterprise offerings
• Develop and market automated video solutions to segmented enterprise verticals
• Expand services and product offerings through continual product development
• Continue to develop, improve, and expand our technology infrastructure

During the third quarter of 2013, the Company focused on:

• Improving its sales process to both increase reseller activation rates and maintain reseller signup rates
• Reducing reseller acquisition costs
• Developing, improving, and officially launching its integrated Video Production, Marketing, and Analytics Platform
• Developing and implementing automated marketing programs
• Launching its Enterprise client platform and gateway
• Expanding and improving partner support, implementation processes, and tools

“We’re very pleased with the progress our business has made throughout the first nine months of 2013,” stated George Fleming, SoMedia’s Chief Executive Officer. “Earlier this month, we announced the addition of our 4,000^th reseller partner. Reseller partners have grown by nearly 700% over the past twelve months, and by 463% since the beginning of this year. This growth is testament to not only the demand for online video production solutions, but also SoMedia’s offering in particular. The quality and breadth of our products and services continues to improve. On October 15, 2013, we officially launched an integrated Video Production, Marketing and Analytics Platform for resellers. This Platform combines SoMedia's unique ScalableVideo production services with total control over video content, detailed analytics, and custom marketing functionality. Our efforts to re-engineer video production have allowed us to merge video marketing and engagement analytics with production to create an intelligent, scalable business solution focused on delivering maximum ROI. Our focus now within this channel is to improve the account management, activation and marketing implementation process and focus on those accounts with the greatest potential to become repeat sellers with significant order volumes."

“SoMedia has also witnessed a particularly positive response from our Enterprise partners - large digital agencies, web marketing companies, and corporate clients. The needs of these businesses are an ideal fit for the scalability that forms the foundation of our Enterprise Video Production, Marketing and Analytics Suite. As a result of the positive reaction to our Enterprise offering, we anticipate placing a greater emphasis on growing this channel. Fortunately, we will have the benefit of strong leadership as we undertake this strategic shift. Ben Pickering, our new President and Chief Operating Officer, possesses the experience necessary to not only oversee our continued progress on current initiatives, but also drive SoMedia’s future growth.”

SUBSEQUENT EVENTS

Subsequent to quarter end, Mark Singh resigned as the Vice President of Sales. The Company wishes to thank Mr. Singh for his contribution to the Company.

Additionally, Lance Montgomery has been appointed as the Vice President of Business Development. Mr. Montgomery will be responsible for the development and execution of the strategy of SoMedia’s Enterprise business.

ABOUT SOMEDIA NETWORKS

SoMedia Networks is a pioneer of integrated video content production, marketing and analytics solutions. Our scalable cloud-based video content production platforms provide resale, white-label, and on demand video production services to thousands of web marketers, digital agencies, corporate brands and media companies across North America.

Our technology first approach allows us to provide a range of ground breaking video production and marketing services and products that break down the traditional barriers of cost, volume and reach; making it easy for partners to deliver online video solutions to their clients simply and affordably, anywhere, at scale.

For more information visit: www.somedia.net

DEFINITION OF KEY PERFORMANCE INDICATORS

Reseller Signups: Denotes a reseller that has accepted the terms and conditions of the reseller relationship through an online digital acceptance form. The reseller agreement includes terms related to payment, scope of offerings, confidentiality, dispute resolution and corporate conduct.

New Activations: A reseller is considered active upon the completion of their initial video purchase.

Resellers Active: A reseller is considered active during a period if that reseller has purchased at least one video during that period.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.