Searchmedia Holdings (NYSE AMEX:IDI)

Full Year 2011 Financial Highlights

• Net revenue was $55.6 million an increase of 13.5% compared to 49.0 million in 2010.
• Net loss was $13.5 million compared to a net loss of $46.6 million in 2010 resulting in an improvement of Loss Per Share from $2.24 in 2010 to $0.64 in 2011.
• Adjusted net loss (non-GAAP) was $1.9 million compared to an adjusted net income (non-GAAP) of $2.0 million in 2010.
  

Peter Tan, CEO of SearchMedia, remarked, �SearchMedia has faced significant challenges these past few years and with the renewed support of the Frost Group and other strategic investors through the recent $3 million convertible note financing, we see a transformation in the prospects of the Company. Major management changes have taken place and are further anticipated. We have added Mr. Jeffrey Ren, an invaluable asset to the Board and we hope to fortify our Board with highly regarded veterans from the industry. We embarked on major cost cutting measures in the first quarter of 2012 and have taken a hardened stance against noncompliant or underperforming subsidiaries as demonstrated by the corporate actions described in recent announcements and filings.

Wilfred Chow, CFO of SearchMedia, added, �As previously announced, in 2012, our Board approved an Integration Program which authorized a capped pool of 7 million common shares to be issued to ex-owners of subsidiaries, for the purpose of converting and eliminating our earn-out liabilities. We believe this will further align the interest of our subsidiaries and shareholders and provide additional incentives for new concessions that benefit all of our operations as a group, as well as enhance the Company�s liquidity and capitalization. In addition, the Company reached settlement agreements for the arbitration initiated by the Company against certain of its predecessor shareholders, as a result of which certain shares or warrants will be cancelled or repurchased at a significant discount. Upon completion of the programs, the Company anticipates the share count will not have materially changed from 2011.

Web site: http://www.searchmediaholdings.com

Last updated May 16, 2012