Mood Media Corporation reports significant growth in Revenue and EBITDA

Record Revenue

• Consolidated revenue of $52.264 M; up 134% over the prior quarter, up 3,366% over Q3 2009

Record EBITDA

• Adjusted EBITDA of $13.041 M; up 167% over the prior quarter, up 2,351% over Q3 2009

TORONTO, Nov. 1 /CNW/ - Mood Media Corporation (formerly Fluid Music Canada, Inc.) (ISIN: CA61534J1057) (TSX:MM / LSE AIM:MM) ("Mood Media" or the "Company"), one of the world's leading in-store media solution providers, announced today its results for the three and nine months ended September 30, 2010.

Lorne Abony, Chairman and CEO of Mood Media, comments: "We are exceptionally pleased with our Q3 results.  We exceeded all expectations for the quarter and we think that speaks volumes for the strength of our business, our overall strategy and market leadership position, the success of our integration, and our potential to build upon these results and grow significantly from here. Going forward, we look to deliver similar positive results as our integration efforts and operational gearing gather further momentum".  

Operational Highlights for the Quarter

• In-store Media division secures new client wins and continues to develop new business opportunities
• Retail P-O-P division expands product range to include PC casual games
• Operating efficiencies include:
  - Reduction in churn,
  - Cost and revenue synergies realized
• Market dominance continues to highlight the strength of the underlying business  

Mood Media's growth and transformation from the prior year's comparable quarter and the prior period is unprecedented.

In-Store Media Division
Mood Media's core in-store media division grew at a rapid pace.  In the nine months ended September 30, 2010, revenue for Mood Media North America grew 32.8% year-over-year. Significant new client wins and launches in Q3, which included such well-known brand-names as Guess Europe, Toys R Us internationally, Carter's, among others, added thousands of new paying locations to Mood's client network and underscore the broad appeal and utility of Mood Media's solutions.

Retail Point-of-Purchase
Somerset Entertainment ("Somerset"), Mood Media's retail point-of-purchase division (RPOP), has strategically re-positioned itself from a North American-focused music business to an international multi-media entertainment business providing products and services that enhance leisure time for its core female demographic.  In Q3, Somerset made significant, decisive strides towards delivering on this strategy:

• Somerset announced an innovative new casual games offering that it will begin distributing through selected mass merchant retail partners.  Somerset has secured exclusive licensing arrangements with the leading causal games publishers, including Big Fish Games and Luxor.
• It was confirmed that Somerset will launch into Germany, the 4th largest music market in the world via Real, a division of Metro, the 3rd largest retailer in the world;
• It was confirmed that Somerset will expand its business in Italy in Q4 2010 by launching three programs in Finiper, the 6th largest retailer in Italy;

Financial Summary

(in $ millions)							Three-month period ended Sept 30			Nine month period ended Sept 30
							2010	2009		2010	2009
Revenue							52.264	1.508		90.577	4.211
Adjusted EBITDA ^(1)							13.041	0.532		17.978	(0.337)

⁽¹⁾ Reconciliation of Adjusted EBITDA (earnings before financing charges, taxes, amortization, stock-based compensation and other non-recurring charges), as reported above, to generally accepted accounting principles (GAAP) with the income /(loss) for the three-month and nine-month periods ended Sept 30, 2009 and 2010 are shown below (all numbers expressed in millions).

(in $ millions)		Three-month period ended Sept 30			Nine month period ended Sept 30
		2010	2009		2010	2009
Net (Loss) Income		(2.616)	0.184		(17.746)	(1.650)
Add/(Deduct)
	Provision for income taxes	0.606	-		0.905	-
	Financing charges, net	4.710	(0.054)		14.852	(0.184)
	Amortization	6.560	0.257		11.709	0.891
	Other non-recurring items	3.655	-		7.865	0.114
	Stock-based compensation	0.126	0.145		0.393	0.492
Adjusted EBITDA^(1)		13.041	0.532		17.978	(0.337)

⁽¹⁾ Mood Media Corporation presents Adjusted EBITDA information as a supplemental figure because management believes it provides useful information regarding operating performance. Adjusted EBITDA is not a recognized measure under Canadian GAAP, does not have standardized meaning, and is unlikely to be comparable to similar measures used by other companies. Accordingly, investors are cautioned that Adjusted EBITDA should not be construed as an alternative to net earnings or (loss) determined in accordance with GAAP as an indicator of the financial performance of the Company or as a measure of the Company's liquidity and cash flows.

About Mood Media Corporation
Mood Media is a leading in-store media specialist that uses a mix of music, visual and scent media to help its clients communicate with consumers with a view to driving incremental sales at the point-of-purchase. Operating through its two principal divisions, In-Store Media and Retail Point-of-Purchase, Mood Media works with more than 800 retail chains in more than 30 countries throughout North America, Europe, Asia and Australia.

The Directors believe that Mood Media's services can have a direct impact on consumer purchasing decisions which makes in-store media an effective marketing tool. The Directors believe that in-store media services can enhance branding in real-time and influence shopper decisions by improving the shopping experience for consumers.

The in-store media business generates revenue via sales of its multi-sensory services to businesses; the retail point-of-purchase sells specialty compilations through its retail clients. Mood Media has also compiled an extensive rights-included music library with over 1.8 million tracks.

Mood Media operates an international in-store media and music retail business with an extensive geographic footprint and a broad client base including several multinational blue chip organizations.

For further information about Mood Media, please visit www.moodmedia.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions. While Mood Media considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect.

Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the impact of general market, industry, credit and economic conditions, currency fluctuations as well as the risk factors identified in the Risk Factors section of Mood Media's management discussion and analysis dated November 1, 2010.

Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Mood Media.

Forward-looking statements are given only as at the date hereof and Mood Media disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

For further information:

Lorne Abony
CEO & Chairman
[phone]

Dominic Morley
Panmure Gordon
[phone]