24/7 Real Media, Inc. is a leading global digital marketing company, empowering advertisers and publishers to engage their target audiences with greater precision, and to achieve transparency, and greater ROI. Using its award winning ad serving, targeting, tracking, and analytics platform, powerful search marketing capabilities and global network of specialized Web sites, the company has turned the art of reaching audiences across virtually any digital medium into a measurable science. The company is headquartered in New York, with 20 offices in 12 countries throughout North America, Europe and Asia. 24/7 Real Media: The Science of Digital Marketing.
24/7 Real Media is a member of the NAI and adheres to the NAI privacy principles that have been applauded by the FTC. These principles are designed to help ensure Internet user privacy.

Fourth Quarter Highlights: 
Revenue of $60.0 million, an increase of 44% year-over-year; 
Pro forma operating income of $6.5 million, or $0.12 per share, compared with $4.0 million, or $0.08 per share, in Q4 of 2005; GAAP net loss of $0.2 million, or $0.00 per share, versus GAAP net income of $1.4 million, or $0.03 per share, in Q4 of 2005; 
Robust international performance, including year-over-year revenue growth in Korea and the United Kingdom of 72% and 42%, respectively. 

New York - February 28th, 2007 - 24/7 Real Media, Inc. (Nasdaq: TFSM), a leading global digital marketing company, today announced financial results for the fourth quarter ended December 31, 2006. Revenue for the fourth quarter of 2006 was $60.0 million, an increase of 44% over the $41.7 million reported for the fourth quarter of 2005. Revenue contribution from international operations was 61% for the quarter, driven in part by strong year-over-year growth in Korea and the U.K. of 72% and 42%, respectively.

Pro forma operating income1 for the fourth quarter of 2006 was $6.5 million, or $0.12 per share. This compares with pro forma operating income of $4.0 million, or $0.08 per share, for the fourth quarter of 2005.

Under generally accepted accounting principles (GAAP), net loss for the fourth quarter of 2006 was $0.2 million, or $0.00 per share. This compared to a GAAP net income of $1.4 million, or $0.03 per share, for the fourth quarter of 2005. Due to the differing treatment of certain expenses in 2006 under the recent adoption of Statement of Financial Accounting Standards (SFAS) No. 123(R), Stock Based Compensation, results between these periods are not directly comparable. The comparable figure for the fourth quarter of 2005, as disclosed under SFAS No. 123(R), is a GAAP net loss of $0.4 million, or $0.01 per share

For the year ended December 31, 2006, revenue was $200.2 million, an increase of 43% from the $139.8 million reported for the year ended December 31, 2005. Pro forma operating income for 2006 was $19.6 million, or $0.36 per share, an increase of 98% over the pro forma operating income of $9.9 million, or $0.20 per share, in the prior year. GAAP net loss for 2006 was $8.6 million, or $0.18 per share, as compared with a GAAP net income of $0.0 million, or $0.00 per share, in 2005. The figure for the full year 2005, as disclosed under SFAS No. 123(R), that is comparable to the 2006 data, is a net loss of $6.0 million, or $0.13 per share for 2005.

Cash flow from operations for the 2006 fiscal year totaled a record $15.1 million and the Company reported a cash balance of $59.4 million as of December 31, 2006.

During the fourth quarter 24/7 Real Media announced the expansion of its existing search engine marketing partnership with Dentsu to address strategic Asian markets outside of Japan. This new venture will establish operations to service advertising markets throughout Asia, including China, India, Korea, Thailand, and Taiwan.

“It was a strong fourth quarter across the board for the digital marketing sector, as well as for 24/7 Real Media,” said David J. Moore, chairman and chief executive officer of 24/7 Real Media. “Significant revenue growth, operational leverage and outstanding execution in each of our business segments allowed the Company to outperform expectations, and we are enjoying the healthy pace that the sector continues to experience around the globe.”

“Through our expanded partnerships with Dentsu, we are positioning 24/7 Real Media to be a significant beneficiary of the incredible expansion that is projected over the upcoming decade for many markets throughout Asia and the Pacific Rim. As the most internationally-diversified company in the digital marketing arena, 24/7 Real Media is well positioned for sustained, strong growth over the upcoming years.”

Segment Overview
Revenue in the Media Solutions segment climbed 39% to $26.2 million in the fourth quarter of 2006 from $18.9 million in the fourth quarter of 2005. Gross margins were 32.2% in the fourth quarter of 2006.

Search Solutions revenue advanced 59% to $26.0 million in the fourth quarter of 2006 from $16.4 million in the fourth quarter of 2005. Gross margins for the segment were 21.6% in the fourth quarter of 2006.

Technology Solutions revenue grew 21% to $7.8 million in the fourth quarter of 2006 from $6.5 million in the fourth quarter of 2005. Technology gross margins, excluding stock based compensation expenses, were 80.7% in the fourth quarter of 2006.

Financial Guidance and Business Outlook
The Company expects first quarter revenue for 2007 to be between $58 million and $59 million, the mid-point of which represents an increase of 36% from first quarter 2006 revenue of $42.9 million. The Company expects diluted pro forma operating income per share in the first quarter of 2007 to be between $0.09 and $0.10 per share.

The Company is raising guidance for full year 2007 revenue to be in the range of $255 million to $265 million, the mid-point of which represents an increase of 30% from full year revenue of $200.2 million in 2006. The Company expects diluted pro forma operating income per share for the full year to be between $0.52 and $0.55 per share.

Revenue guidance includes the projected financial performance of K.K. 24-7 Search, the Japanese venture with Dentsu in which 24/7 Real Media holds a majority interest and reports on a consolidated basis. Pro forma operating income guidance is provided net of Dentsu's 49% minority interest in the projected pro forma operating income or loss generated by K.K. 24-7 Search.

Neither revenue guidance nor pro forma operating income guidance includes the projected financial performance of the expanded partnership with Dentsu to address markets beyond Japan, as 24/7 Real Media will not be reporting these operations on a consolidated basis.

The Company is not providing GAAP net income per share guidance for the first quarter of 2007 or the full year 2007 at this time, as certain items that would be included in that figure are dependent on future events and accounting determinations.