Fotolog Hits 11 Million Members and 300 Million Photos Posted, Sets Records for Uploads and Page Views

Fotolog Hits 11 Million Members and 300 Million Photos Posted, Sets Records for Uploads and Page Views

World’s Leading Photo-Blogging Site, Soon to Be Acquired by France’s Hi-Media Group, Continues Extraordinary Momentum

Milestones Underscore Rapid Viral Growth, High Level of Usage and Member Engagement That Will Drive Monetization Within One of Europe’s Largest Publicly-Traded Internet “Pure Plays”

Fotolog™ today said that the world’s largest photo-blogging community and third most-trafficked social media network had reached the milestones of 11 million members and 300 million photos posted on its site. The site also set new monthly records in August with more than 20 million uploads of posted photos and 3.5 billion page views, a daily record last week of 135 million page views and two consecutive daily records with 774,000 and 790,000 photo uploads.

The news, which follows closely on the heels of the Company’s announcement that it would be acquired by France’s Hi-Media Group, continues the site’s extraordinary momentum, including a doubling of its membership and the addition of more than 140 million photos since the beginning of the year, rises in usage and the launches of key alliances that have substantially upgraded its already compelling user experience.

Fotolog Chief Executive Officer John Borthwick stated, “Fotolog’s rapid ascension past the 11 million-member and 300 million-photo marks underscores the continued rapid growth and high level of user engagement that attracted the interest of Hi-Media Group and will soon make us part of Europe’s most powerful publicly traded Internet ‘pure plays.’ We’re looking forward to working with our colleagues at Hi-Media to marry this user-generated publishing phenomenon with their extensive ad network and micropayments business and to leverage the value of our global community.”

Fotolog’s astounding growth – it has been adding approximately 30,000 members per day – has been achieved purely virally, with virtually no expenditures on marketing. And the site, which ranks 19th on the Alexa list of the world’s most trafficked websites, has reached the 300 million photo milestone despite its unique rule of restricting postings to one a day, which improves the quality of postings and the likelihood that photos will be viewed and commented on. A photo posting draws an average of 11 comments, a psychic “pat on the back” that builds community and drives exceptional usage.

Fotolog attracts more than 4.2 million daily users and Company executives estimate that the site ranks 18th worldwide in average minutes per usage day and 13th in average visits per visitor (these ranks are based on company calculations and only measures against the July 2007 Top 1000 Properties based on Unique Users as defined by Comscore).

Fotolog’s GM, Andrew Cohen said, “As we enter a new phase, Fotolog is truly hitting our stride and demonstrating our value as a leading global publishing site. We see the opportunity to even further improve and fully monetize our highly compelling and addictive member experience as part of the Hi-Media family.”

Fotolog upgraded its user experience in recent months through alliances with Google and AOL to add search functionality and instant messaging capability, respectively, and the site’s powerful design and member experience earned it recognition as PC Magazine’s Site of the Week earlier this year. Its 300 million photos include more than 500 user-generated communities gathering around topics ranging from colors to cats to clouds to Converse sneakers, not to mention what management believes is the largest collection of photos of street art in the world.

About Fotolog, Inc.

Fotolog, Inc. is the world’s largest photo-blogging community and one of the most actively-used social networks on the Internet. More than 11 million member accounts from more than 200 countries have shared more than 300 million photos since its launch in 2002 by Chief Product Officer Adam Seifer and Scott Heiferman. Fotolog has grown entirely virally since its founding, with no marketing or member incentives. The site provides a platform for members to share experiences and connect with others across the globe by bringing together the power of digital photography, social networking and blogging to attract and entertain in a unique and captive user experience.

About Hi-Media Group

Hi-Media is a website publishing and services company specializing in online advertising and electronic commerce with operations in eight countries. Europe’s third-ranked interactive advertising agency, the company is also the leading provider of electronic micro-payment solutions in France. Hi-Media also offers a complete range of tools and services in the realm of direct marketing. Hi-Media is listed on Eurolist B of Euronext Paris as well as the SBF 250, CAC IT, and CAC Small 90 indexes. ISIN Code: FR0000075988.

Disclaimer

This communication does not constitute an offer of Hi-Media shares or a solicitation of offers for the shares of the Fotolog. Shares of Hi-Media that will be issued to eligible Fotolog shareholders have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States and may not be offered or sold within the United States or to U.S. persons (each as defined in Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

Certain statements contained herein are forward-looking statements, including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions and include any statement that does not directly relate to a historical fact or current fact. Forward-looking statements are typically identified by words or phrases such as, without limitation, “anticipate”, “assume”, “believe”, “continue”, “estimate”, “expect”, “foresee”, “intend”, “may increase” and “may fluctuate” and similar expressions or by future or conditional verbs such as, without limitations, “will”, “should”, “would” and “could.” Undue reliance should not be placed on such statements, because, by their nature, they are subject to known and unknown risks, uncertainties and other factors, which may cause Hi-Media’s actual results, performance, achievements or prospects to differ from any future results, performance, achievements or prospects expressed or implied by such statements, including the risk that the combination of Hi-Media and Fotolog may not be consummated. Such factors include, among others: the costs related to the transaction; the inability to obtain, or meet conditions imposed by, the required governmental and regulatory approvals and consents; the risk that the businesses of Hi-Media and Fotolog will not be integrated successfully; other risks and uncertainties affecting Hi-Media and Fotolog including, without limitation, the risk of future extraordinary events, economic and market developments, regulatory actions and developments, litigation and other proceedings.

Hi-Media and Fotolog operate in a continually changing environment and new risks emerge continually. Hi-Media does not undertake and expressly disclaims any obligation to update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.

Contacts

Fotolog, Inc.
by
New PR Group
Andrei Bogolubov, 917-849-9300
Andrei.Bogolubov {at} newprgroup(.)com