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NeoMedia’s PaperClick an RX in Fight Against Counterfeit Prescription Drugs
Posted: 10/22/2003

Posted By: The Kaminer Group Contact: David Kaminer
Phone: 9146841934 Email: dkaminer@kamgrp.com

FT. MYERS, FL, Oct. 22, 2003 – NeoMedia Technologies, Inc. (OTCBB: NEOM), a leader in innovative technologies which make information easier to access, today said its patented PaperClick™ technology could be a formidable weapon in the government’s war against the growing epidemic of counterfeit prescription drugs.

The Food and Drug Administration's Counterfeit Drug Task Force recently announced that bar codes and radio frequency identification (RFID) technology will be major weapons in how the public sector, along with the pharmaceutical industry, wages war on counterfeit prescription drugs.

Counterfeit Drugs a Growing Problem

“There is a growing epidemic in the distribution of prescription drugs, which has become a fertile ground for illegal trade involving criminals, illicit wholesalers and Internet sites, and foreign pharmacies,” said Jon Greene, whose company, Security Source Technologies, Inc., was acquired by NeoMedia last week (see “Combined Patent Portfolio of NeoMedia/Secure Source Boosts Ability to Combat Identity Fraud and Support Homeland Security Programs,” Business Wire, Aug. 7).

“This criminal element has introduced counterfeit pharmaceuticals into the mainstream drug chain,” he said, “and media, from TV to page 1 of The Washington Post to pharmaceutical trade publications, sees this as a major story. Just this summer, some 200,000 tablets of Lipitor®, the best-selling cholesterol-lowering medication, were found to be counterfeit and recalled, but only after reaching major retail stores. The FDA wants desperately to intercept illegal packages,” said Greene, “but has admitted it lacks the resources and technology to do so.”

Greene believes the FDA “took a major step forward” when it announced plans in March to require bar codes on unit-dose packaging for medications to help improve patient safety. Further, he said, the FDA’s Counterfeit Drug Task Force’s recent report outlined options for an anti-counterfeiting program, citing data collection technology as key, including use of fluorescent inks, invisible bar codes and RFID tags. The report, said Greene, noted that tracking at the individual package level, in addition to the case/pallet level, would be best.

PaperClick Links Consumers, Camera Cell Phones and Packaging Information

Chas Fritz, chairman, founder and chief visionary of NeoMedia, said its PaperClick technology used via a camera cell phone (see “NeoMedia’s New Killer Wireless App for Nokia Camera Cell Phones Turns Internationally-Popular Toys Into Internet-Enabled Business Tools,” Business Wire, Sept. 8) can overcome the problem of training consumers about what security features and information to look for on packages.

“With PaperClick,” he said, “just a picture of a code on a package links consumers to a Web site, which can provide up-to-date information on what to look for on the package.” Fritz said NeoMedia is looking into several other product authentication solutions “based on our patented and proprietary technology” for reading both overt and covert information and features through PaperClick.

He said this includes RF-ID, which uses electronic chips (called “tags”) to hold information similar to data held by UPC/EAN bar codes, but which can also track specific parts, pieces or items from manufacturer to user, through the supply chain RF-ID tags can communicate automatically, without human intervention, with scanners, readers and computers (see “NeoMedia Patents Form Critical Link for RF-ID,” Business Wire, Sept. 16).

“Linking cell phones with PaperClick to RF-ID is not here today,” said Fritz, “but it’s a technology to look for in the not-so-distant future.

“NeoMedia believes we have the most comprehensive approach to address the growing menace to drug manufacturers, legitimate distributors and, most importantly, to the consumer,” Fritz said. “This week we are in Washington for meetings, and are actively developing strategic relationships in both the public and private sectors to help us enlist PaperClick solutions in the war against counterfeit prescription drugs.”

About NeoMedia Technologies
NeoMedia Technologies, Inc. (www.neom.com), is an innovator and international leader in print-to-Internet and other technologies which make information faster and easier to access, with expertise in homeland security and e-authentication applications. NeoMedia markets PaperClick and PaperClick For Cell/Mobile Phones™, which link physical information and objects to the Internet, and its Systems Integration Group specializes in providing expert-based IT consulting, hardware, and software solutions.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.

PaperClick and PaperClick For Cell/Mobile Phones are trademarks of NeoMedia Technologies, Inc. Pfizer is a registered trademark of Pfizer, Inc.




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