Hi-Media Group Closes Fotolog Acquisition

Hi-Media Group announced today that the Company has closed its acquisition of Fotolog, the world’s 18th most-trafficked website (source: Alexa), to become one of the top 100 largest Internet properties in the world (source: Comscore). The transaction creates a significant monetization opportunity for Hi-Media - one of Europe’s largest diversified, publicly-traded pure play Internet companies - by bringing together the Group’s global advertising, and micro-payment services with Fotolog’s rapidly-growing and highly-engaged audience of over 13 million member accounts. Cyril Zimmermann, Chairman and CEO of Hi-Media Group, stated: "Today we begin executing our vision of monetizing Fotolog’s platform by marrying this massive social network to our online revenue-generating capabilities. We see this as day one in our mission to realize a very compelling value proposition for shareholders and a major step toward our goal of making Hi-Media into a leading integrated online media company. ” Fotolog Continues Explosive Growth Since Hi-Media Group announced the Fotolog acquisition in August 2007, Fotolog has added 3 million members and has achieved milestones including passing 13 million members, receiving over 16 million unique visitors per month, 3.9 billion page views and 350 million pictures posted. Stated Fotolog General Manager Andrew Cohen: "At Fotolog we created one of the world’s largest audiences and a major publisher of user-generated content. Putting our global platform together with Hi-Media Group’s resources and revenue capabilities is an exciting prospect for members, employees and shareholders alike.” Hi-Media Announces New Board Member and Fotolog Executive Team Hi-Media Group also announced today that Mathias Schilling of BV Capital, one of Fotolog’s largest shareholders, has been appointed a board member of Hi Media Group and that Hi-Media’s COO, Erik Marie-Bion, will also be CEO of Fotolog. Stated Mathias Schilling: "We look forward to working with Hi-Media’s board, Erik Marie-Bion and the company’s strong management team to realize the tremendous value created by this transaction.” Fotolog co-founder and Chairman Adam Seifer will continue in his role as Chief Product Officer, while also lending his expertise in developing other Hi-Media Group communities. Industry veteran Andrew Cohen has agreed to continue his leadership as General Manager of Fotolog, whose headquarters remain in New York City. Fotolog CEO and shareholder John Borthwick is launching an early stage social media platform, Betaworks. Launched in May 2002 by co-founders Scott Heiferman and Adam Seifer, Fotolog is a leading social media network (www.fotolog.com) that provides a platform for members to share experiences and connect with others across the globe through daily photo-blog postings, or "photologs.” Fotolog has experienced strong growth this year, more than doubling member accounts to over 13 million and reaching 16.3 million unique visitors and 3.9 billion page views per month. Fotolog ranks 18th on Alexa’s list of the world’s most-trafficked websites and, according to Comscore, reaches 2% of the total Internet audience. About Hi-Media Hi-Media is a publisher of Internet sites and is a company offering specialised services in connection with Internet advertising and e-commerce, present in 8 countries. The company is the third-ranking independent interactive advertising network agency in Europe and is also ranking number one among the French providers of electronic micro-payment solutions. The company has also developed a complete range of tools and services in the direct marketing field. Hi-Media is listed on the Euronext Paris Eurolist B, and belongs to the SBF 250, CAC IT and CAC Small 90 indices. ISIN Code: FR0000075988.