New Motion Increases Revenue 88% Year-Over-Year in the Third Quarter.(Financial report)

Q3 Paid Subscriber Growth Approximately 750,000; Up By Approximately 180,000 Over Last Quarter

IRVINE, Calif. -- New Motion Inc. (OTCBB:NWMO) today announced results for its fiscal third quarter ended September 30, 2007. The Company continues to demonstrate strong momentum, growing quarterly revenues 88% year-over-year in the third quarter, and growing revenue 84% year-over-year for the nine months ended September 30, 2007.

Compelling digital content and products - both mobile and online - generates a wide audience, and New Motion's unique business model illustrates it can convert this audience into a premium mobile subscriber. The company's approach integrates the Internet and mobile platforms across all four of their core direct-to-consumer business areas - digital music, casual gaming, community/lifestyle, and interactive contests. This integrated approach, coupled with an ability to acquire new customers across a broad demographic at greatly reduced costs, has resulted in New Motion becoming a leading company in the U.S. direct-to-consumer mobile entertainment marketplace.

Net sales for New Motion's third quarter of fiscal 2007 grew to $10.5 million, up 88% from $5.6 million in the third quarter of fiscal 2006. Net loss for the third quarter of fiscal 2007 was $1.9 million, or $0.16 per basic and diluted share, compared to a net loss of $0.4 million, or $0.06 per basic and diluted share, in the third quarter of fiscal 2006. Included in the 2007 third quarter net loss is approximately $0.7 million of non-cash depreciation, amortization and stock compensation expense. New Motion ended the third quarter with $13.0 million of cash and cash equivalents and working capital of $15.1 million.

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