Remark Media Announces Second Quarter 2012 Earnings

NEW YORK, NY and ATLANTA, GA, Aug. 9, 2012 (GLOBE NEWSWIRE) -- Remark Media, Inc. (Nasdaq: MARK), a global digital mediacompany, today reported financial results for its second quarterended June 30, 2012.

"In 2012, Remark Media is focused on accelerating growth bytransitioning from a service model to owning and operating digitalbrands. This strategic decision will help position Remark Media asa leading digital media company and will provide the potential togenerate new revenue streams," said Carrie Ferman, CEO of RemarkMedia. "The current financials reflect a company in transition andactively investing in assets that will create a diverse portfolioof websites in personal finance--the hub of which will"


·       Revenue for the secondquarter was $33,000, a slight increase over the first quarter dueto consolidation of several days of revenues. Revenue wasdown from $1.3 million in the prior year period, primarily due tothe end of the service agreements with Sharecare and Discovery anda shift in the strategic direction of the company.

·       Operating expensesdecreased 27% to $1.6 million compared to $2.2 million in the prioryear period.

·       Net loss was $(2.2)million or $(0.34) per share compared to a net loss of $(1.0)million or $(0.19) per share in the prior year period.

·       Cash balance as of June30, 2012 stood at $2.3 million compared to $3.0 million on June 30,2011.

Balance Sheet Highlights.  With merger completed, Remark Media's total assets increasedto $8.9 million as of June 30, 2012 compared to $3.7 million atDecember 31, 2011. The book value of our investment in Sharecareincreased to $1.6 million as of June 30, 2012 compared to $0.9million at December 31, 2011.

Operating Highlights. isexpected to transition from beta to full consumer launch in earlySeptember accompanied by an advertising launch campaign. RemarkMedia is also on track to re-launch in September, anasset that has the potential to drive significant value. Futurefocus will be on redevelopment and Inaddition, in the second quarter Remark Media added key employees toits management team in the areas of product, editorial, marketing,and sales.

Sharecare Highlights.  During the quarterending June 30, Sharecare generated $8.2 million in revenuescompared to $2.9 million in the prior year period, representing181% growth. As of June 30, Remark Media owned approximately 10.9%of the outstanding common stock of Sharecare.


On June 28, 2012, Remark Media, Inc. completed the mergercontemplated by the Agreement and Plan of Merger dated as ofFebruary 26, 2012, among Remark Media and Inc.  Atthe effective time of the Merger, each share of the outstandingcommon stock of was converted into the right to receive0.0258 shares of Remark Media common stock, for an aggregate of671,332 shares of Remark Media common stock.  The outstandingshares of preferred stock, including all accrued andunpaid dividends as of the date of closing of the Merger on suchpreferred stock, a Note and a Warrant, all of which were held byDaniel M. O'Donnell, former President and Chief Executive Officerof, and his affiliates, were converted into cash in theaggregate amount of $300,000 and the right to receive 31,452 sharesof Remark Media common stock.  In connection with the Merger, issued an Amended and Restated Promissory Note in theprincipal amount of $125,000 to Mr. O'Donnell and his wife; theNote was settled on the effective date of the merger.


Remark will host a conference call to discuss second quarterresults. The call will take place on Friday, August 10th, 2012 at10:30am Eastern Standard Time. Please dial in at least 10 minutesearly to insure that you are connected in time for the beginning ofthe call. Dialing instructions are:

In the United States: 1-888-778-9062

Outside the U.S: 1-913-312-1448

Passcode: 6903242

About Remark Media

Remark Media, Inc. (Nasdaq: MARK) is a global digital mediacompany focused on creating destinations that merge engagingcontent with rich social interaction. Remark Media owns andoperates a portfolio of digital brands in the personal financespace including,, The Company is the exclusive digital publisher inChina and Brazil for translated content from, asubsidiary of Discovery Communications. BoWenWang( and ComoTudoFunciona ( providereaders in China and Brazil with thousands of articles about howthe world around them works, serving as destinations for credible,easy-to-understand reference information. Remark Media is also afounding partner and developer of Sharecare, a highly searchablesocial Q&A healthcare platform organizing and answering healthand wellness questions. The Company is headquartered in Atlantawith additional operations in New York, Beijing and Sao Paulo.Additional information is available on its corporate website

Forward-Looking Statements

This press release contains "forward-looking statements," asdefined in Section 27A of the Securities Act of 1933, as amended,and Section 21E of the Securities Exchange Act of 1934, as amended.Forward-looking statements may be in the future tense, and ofteninclude words such as "anticipate", "expect", "project", "believe","plan", "estimate", "intend", "will" and "may". These statementsare based on current expectations, but are subject to certain risksand uncertainties, many of which are difficult to predict and arebeyond the control of Remark Media. Relevant risks anduncertainties include those referenced in Remark Media's filingswith the SEC, and include but are not limited to: our losses andimmediate need to raise capital; successfully developing andlaunching new digital media properties; the likelihood of oursuccess in integrating and achieving the desired benefits from merger; restrictions on intellectual property underagreements with Sharecare and third parties; challenges inherent indeveloping an online business; our ability to attract traffic toand monetize our digital media properties; reliance on keypersonnel; general industry conditions and competition; and generaleconomic conditions, such as advertising rate, interest rate andcurrency exchange rate fluctuations. These risks and uncertaintiescould cause actual results to differ materially from thoseexpressed in or implied by the forward-looking statements, andtherefore should be carefully considered. Remark Media assumes noobligation to update any forward-looking statements as a result ofnew information or future events or developments, except asrequired by law. 


    Three MonthsEnded June 30,   Six Months EndedJune 30,
      2012     2011     2012     2011
Brands   $                       33,003   $                       29,534   $                       57,114   $                       66,012
Content and platform services                                  -                        1,251,622                                  -                        2,761,220
Total revenue                           33,003                      1,281,156                           57,114                      2,827,232
Operating expenses                      1,614,631                      2,210,262                      3,112,875                      4,963,493
Loss from operations                    (1,581,628)                       (929,106)                    (3,055,761)                    (2,136,261)
Other income(loss) including gain(loss) onequity-method investment                       (590,793)                         (83,504)                         661,590                       (529,597)
Net loss   $                (2,172,421)    $                (1,012,610)   $                (2,394,171)   $                (2,665,858)
Adjusted EBITDAReconciliation   Three MonthsEnded June 30,   Six Months EndedJune 30,
      2012     2011     2012     2011
Net Loss   $                (2,172,421)   $                (1,012,610)   $                (2,394,171)   $                (2,665,858)
Add back:                        
Interest expense                             2,441                           37,026                           27,125                           49,368
Depreciation                           27,056                           60,924                           52,524                         129,190
Stock Compensation expense                         220,774                         149,085                         449,957                         371,750
(Gain)loss from equity investment                       (592,267)                         (50,734)                         681,608                       (481,451)
Adjusted EBITDA   $                (2,514,417)   $                   (816,309)   $                (1,182,957)   $                (2,597,001)

--------------------Adjusted EBITDA is defined as earnings before interest, taxes,depreciation, amortization, gain/loss on disposal of fixed assets,gain/loss on equity-method investments, impairment of goodwill,intangible assets or long-lived assets and stock-based compensationexpense. 

Certain reclassifications have been made to the prior yearfinancial information to conform to the current periodpresentation.

CONTACT: Travis Page         212-905-8947                  

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