NWMO New Motion (MM)

New Motion, Inc., doing business as Atrinsic, (NASDAQ: NWMO), a premier diversified online marketing services company, announced today that revenues for the first quarter of 2009 were $23.5 million compared with $28.7 million in the first quarter of 2008, a decrease of 18%. The decrease in revenue is principally attributed to a decline in the average number of subscribers as compared to the first quarter of 2008. For the three months ended March 31, 2009, Subscription revenues decreased by 60% and revenues from Transactional service offerings increased by 18% when compared to the first quarter of 2008. Notwithstanding the quarter-over-quarter decline in subscription revenues, the Company is developing and launching new mobile products in the music, games, commerce, and lifestyle categories to support increasing demand for rich media mobile content services.

Operating expenses for the first quarter of 2009 were $25.3 million compared with operating expenses of $29.4 million in the first quarter of 2008, a decrease of approximately $4.0 million. The decrease is primarily attributable to a reduced amount of purchased third party media, a reduction in labor and operating costs and efficiencies gained from the merger with Traffix, Inc. In addition, the Company is carefully monitoring its performance relative to expectations and market conditions to manage its fixed and discretionary customer acquisition, lead generation activities, and other operating expenses.

Net loss for the first quarter of 2009 was ($1.187) million (($0.06) per basic and diluted loss per share) compared with a net loss of ($267) thousand for the first quarter of 2008 (($0.01) per basic and diluted loss per share).

As of March 31, 2009, the Company had $22.9 million of cash, cash equivalents and marketable securities with significant working capital to support future growth, business development initiatives, and capital activities. Pursuant to its previously announced stock repurchase program, which ends May 2009, the Company repurchased 832,392 shares of Common stock during the first quarter of 2009 at a cost of approximately $1.0 million.

Company Goals

During 2008, the Company consummated two significant business combinations and took significant actions to maximize the efficiencies related to those transactions. In addition, management reduced operating expenses, launched numerous operational initiatives, and continued to monitor the marketplace for additional opportunities.

For 2009, some of the Company�s specific goals include:

• Completing the co-development and implementation of Shopit.com, a leading social commerce application which the Company expects to provide advanced media buying opportunities and associated advertising inventory.
• Continued development and launch of Kazaa, wherein the Company serves as the exclusive Sales and Marketing partner, expanding the Company�s presence in the music and music related content genre. During it most recent test period, the Company has been acquiring approximately 500 new subscribers per day.
• Measured and continued international marketing of the Company�s proprietary content offerings.
• Completion and implementation of the Company�s Web 2.0 proprietary online advertising and media buying platform including the implementation of a CPM display network which is currently serving millions of impressions per day.
• Expanding the Company�s mobile and landline (�LEC�) billing platforms, including realization of the benefits of the Company�s investment in The Billing Resource, LLC (�TBR�) and other partners.
• Continued ongoing investments in new and innovative proprietary content including the launch of a new and innovative mobile service.

The business climate is challenging and the Company continues to consolidate operations acquired in its most recent business combinations. In response, the Company is (i) implementing various cost control measures to better align expenses with revenues, (ii) implementing improved technologies and processes to enhance productivity and create competitive advantages, and (iii) eliminating activities that don�t meet current expectations of profitability. It is expected that these cost control measures will reduce reported operating expenses by 20% - 25% annually and consolidate the Company�s operations into two facilities.

1 All non-GAAP amounts have been adjusted from comparable GAAP measures. A description of all adjustments and reconciliations to comparable GAAP measures for all periods presented are included within this communication.

About New Motion, Inc. (doing business as Atrinsic)

New Motion, Inc., doing business as Atrinsic, is one of the leading digital advertising and marketing services company in the United States. Atrinsic is organized as a single segment with two principal offerings: (1) Transactional services - offering full service online marketing and distribution services which are targeted and measurable online campaigns and programs for marketing partners, corporate advertisers, or their agencies, generating qualified customer leads, online responses and activities, or increased brand recognition, and (2) Subscription services - offering our portfolio of subscription based content applications direct to users working with wireless carriers and other distributors.

Atrinsic brings together the power of the Internet, the latest in mobile technology, and traditional marketing/advertising methodologies, creating a fully integrated multi platform vehicle for the advanced generation of qualified leads monetized by the sale and distribution of subscription content, brand-based distribution and pay-for-performance advertising. Atrinsic�s content is organized into four strategic content groups - digital music, casual games, interactive contests, and communities/lifestyles. The Atrinsic brands include GatorArcade, a premium online and mobile gaming site, Ringtone.com, a mobile music download service, and iMatchUp, one of the first integrated web-mobile dating services. Feature-rich Network advertising services include a mobile ad network, extensive search capabilities, email marketing, one of the largest and growing publisher networks, and proprietary subscription content. Services are provided on a variety of pricing models including cost per action, fixed fee, or commission based arrangements.

Availability of Annual Report on Form 10-K

On March 26, 2009, the Company filed its Form 10-K. A copy of the Form 10-K can be obtained at no cost on the SEC�s website, www.sec.gov. A copy of the Company�s Form 10-K is also available in print at no cost to any Company shareholder upon request.

Forward-Looking Statements

This press release contains �forward-looking� statements based on management�s current expectations as of the date of this release. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements include the Company�s�expectations that it will have sufficient capital resources to enable continued development and growth into the future.�Because such statements inherently involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking statements. Such risks include, among others, risks related to the successful offering of the Company�s products and services; the risk that the anticipated benefits of the Traffix merger or the Ringtone.com acquisition may not be realized and other risks that may impact the Company�s business, some of which are discussed in the Company�s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the �SEC�) on or about the date of this release under the caption �Risk Factors� and elsewhere, including in the Company�s other reports filed from time to time with the SEC. All information in this release is as of May 12, 2009. The Company does not undertake any obligation to update or revise these forward-looking statements to conform to actual results or changes in the Company�s expectations.

Supplemental Disclosure regarding Non-GAAP Measures

EBITDA and Adjusted EBITDA

The following tables set forth the Company�s EBITDA and Adjusted EBITDA for the three months periods ended March 31, 2009 and 2008. The Company defines �EBITDA� and �Adjusted EBITDA� as net income adjusted to exclude the following line items presented in its Statement of Operations: Equity in earnings of investee, noncontrolling interest, income taxes, interest expense, interest and dividend income, net, depreciation and amortization, and in the case of Adjusted EBITDA non-cash equity based compensation. While this non-Generally Accepted Accounting Principles (�GAAP�) measure has been relabeled to more accurately describe in the title the method of calculation of the measure, the actual method of calculating the measure is presented below.

The Company uses Adjusted EBITDA, among other things, and possibly with additional adjustments, to evaluate the Company�s operating performance, to value prospective acquisitions, and as one of several components of incentive compensation targets for certain management personnel, and this measure is among the primary measures used by management for planning and forecasting of future periods. This measure is an important indicator of the Company�s operational strength and performance of its business because it provides one of several links between profitability and operating cash flow. The Company believes the presentation of this measure is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company�s management, helps improve their ability to understand the Company�s operating performance and makes it easier to compare the Company�s results with other companies that have different financing and capital structures or tax rates. In addition, it is our understanding that this measure is also among the primary measures used externally by the Company�s investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry. The Company has elected to not adjust EBITDA for the impact of the adoption of Financial Accounting Standards Board Statement of Financial Accounting Standards No.�123 �Share-Based Payment� (�FAS 123R�) and the Company has provided what it believes to be relevant supplemental information in this communication for analysis by others to fit their particular needs.

Since EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net income as an indicator of operating performance. EBITDA and Adjusted EBITDA, as the Company calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company�s ability to fund its cash needs. As EBITDA and Adjusted EBITDA exclude certain financial information compared with net income, the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are excluded. As required by the SEC, the Company provides below a reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable amount reported under GAAP.

� Reconciliation of Reported Net Loss To EBITDA and Adjusted EBITDA For the Three Months Ending March 31, 2009 and 2008 (Dollars in thousands, except per share data) � � Three Months Ended March 31, March 31, 2009 2008 � Net loss attributable to Atrinsic $ (1,187 ) $ (267 ) � Reconciliation Items: Equity in loss of Investee 85 - Net loss attributable to noncontrolling interest (18 ) (29 ) Income taxes (670 ) (174 ) Other expense (income) (1 ) 130 Interest expense (income) and dividends, net 4 (285 ) Depreciation and amortization � 1,555 � � 565 � � EBITDA $ (232 ) $ (60 ) � Non-cash equity based compensation $ 341 � $ 694 � � Adjusted EBITDA $ 109 � $ 634 � � Diluted Adjusted EBITDA per Common Share $ 0.01 � $ 0.03 � �

Condensed Pro Forma Summary

The following table sets forth the Company�s Condensed Proforma results for the three month period ended March 31, 2008. The following pro forma consolidated amounts give effect to the merger with Traffix, Inc. on February 4, 2008 and the acquisition of Ringtone.com on June 30, 2008 with both being accounted for by the purchase method of accounting as if they had occurred as of the beginning of the periods presented. The pro forma consolidated results are not necessarily indicative of the operating results that would have been achieved had the transactions been in effect as of the beginning of the periods presented and should not be construed as being representative of future operating results. The Consolidated Statement of Operations for the three months ending March 31, 2009 is presented for comparative purposes.

� Pro Forma Consolidated Statement of Operations For the Three Months Ending March 31, 2009 and 2008 (Dollars in thousands, except per share data) � Three Months Ended March 31, March 31, 2009 (Actual) 2008 (Proforma) Net revenues $ 23,548 $ 36,307

�

Operating expense net of interest and other expense

25,405 36,050 � Income taxes (670 ) (174 ) � � Net Proforma (Loss) Income $ (1,187 ) $ 431 � � Basic and Diluted earnings per share $ (0.06 ) $ 0.02 � �

Pro Forma EBITDA and Adjusted EBITDA

The following table sets forth pro forma EBITDA and pro forma Adjusted EBITDA amounts after giving effect to the merger with Traffix, Inc. on February 4, 2008 and the acquisition of Ringtone.com on June 30, 2008 as if they had occurred as of the beginning of the periods presented. The pro forma consolidated results are not necessarily indicative of the operating results that would have been achieved had the transactions been in effect as of the beginning of the periods presented and should not be construed as being representative of future operating results. EBITDA and Adjusted EBITDA for the three months ending March 31, 2009 are presented for comparative purposes.

� Reconciliation of Pro Forma Net Income/(Loss) To Pro Forma EBITDA and Pro Forma Adjusted EBITDA For the Three Months Ending March 31, 2009 and 2008 (Dollars in thousands, except per share data) � � �

�

Three Months Ended March 31, March 31, 2009 (Actual) 2008 (Proforma) Pro Forma Net loss $ (1,187 ) $ 431 � Reconciliation Items: Equity in loss of Investee 85 - Net loss attributable to noncontrolling interest (18 ) (29 ) Income taxes (670 ) (174 ) Other expense (income) (1 ) 35 Interest expense (income) and dividends, net 4 (162 ) Depreciation and amortization � 1,555 � � 936 � � Pro Forma EBITDA $ (231 ) $ 1,037 � Non-cash equity based compensation � 341 � � 694 � � Adjusted Pro Forma EBITDA $ 109 � $ 1,731 � � Diluted Pro Forma Adjusted EBITDA per Common Share $ 0.01 � $ 0.09 � � NEW MOTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands, except per share data) � March 31, December 31, � 2009 � � 2008 � ASSETS Current Assets Cash and cash equivalents $ 22,646 $ 20,410 Marketable securities 243 4,245 Accounts receivable, net of allowance for doubtful accounts of $3,926 and $2,938 15,110 16,790 Income tax receivable 2,891 2,666 Prepaid expenses and other current assets 4,847 3,686 � � Total Currents Assets 45,737 47,797 PROPERTY AND EQUIPMENT, net of accumulated depreciation of $1,597 and $1,435 3,500 3,525 GOODWILL 11,981 11,075 INTANGIBLE ASSETS, net of accumulated amortization of $7,074 and $5,683 11,117 12,508 INVESTMENTS, ADVANCES AND OTHER ASSETS 4,314 3,858 � � TOTAL ASSETS $ 76,649 � $ 78,763 � LIABILITIES AND EQUITY Current Liabilities Accounts payable $ 10,598 $ 7,194 Accrued expenses 9,862 13,941 Note payable 1,881 1,858 Deferred revenue and Other current liabilities 1,613 1,121 � � Total Current Liabilities 23,954 24,114 � STOCKHOLDERS' EQUITY Common stock - par value $.01, 100,000,000 authorized, 23,032,000 and 22,992,280 shares issued at 2009 and 2008, respectively; and, 20,290,682 and 21,083,354 shares outstanding at 2009 and 2008, respectively. 230 230 Additional paid-in capital 177,563 177,347 Accumulated other comprehensive loss (312 ) (286 ) Common stock, held in treasury, at cost, 2,741,318 shares (4,992 ) (4,053 ) Accumulated deficit � (120,036 ) � (118,849 ) Total New Motion's Stockholders' Equity 52,453 54,389 � NONCONTROLLING INTEREST 242 260 � � TOTAL EQUITY 52,695 54,649 � � TOTAL LIABILITIES AND EQUITY $ 76,649 � $ 78,763 � � NEW MOTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except per share data) � � Three Months Ended March 31, � 2009 � � 2008 � � Subscription $ 5,377 $ 13,282 Transactional � 18,171 � � 15,456 � NET REVENUES � 23,548 � � 28,738 � � OPERATING EXPENSES Cost of media-third party 15,475 20,070 Product and distribution 2,254 2,362 Selling and marketing 2,785 1,951 General and administrative and other operating 3,266 4,415 Depreciation and amortization � 1,555 � � 565 � � 25,335 � � 29,363 � � LOSS FROM OPERATIONS � (1,787 ) � (625 ) � OTHER (INCOME) EXPENSE Interest income and dividends (46 ) (292 ) Interest expense 50 7 Other (income) expense � (1 ) � 130 � 3 (155 ) � LOSS BEFORE TAXES AND EQUITY IN LOSS OF INVESTEE (1,790 ) (470 ) � INCOME TAXES � (670 ) � (174 ) � NET LOSS (1,120 ) (296 ) � EQUITY IN LOSS OF INVESTEE, AFTER TAX 85 - � LESS : NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST, AFTER TAX � (18 ) � (29 ) � NET LOSS ATTRIBUTABLE TO NEW MOTION, INC $ (1,187 ) $ (267 ) � NET LOSS ATTRIBUTABLE TO NEW MOTION, INC PER SHARE Basic $ (0.06 ) $ (0.01 ) Diluted $ (0.06 ) $ (0.01 ) � WEIGHTED AVERAGE SHARES OUTSTANDING: Basic � 20,790,942 � � 18,932,871 � Diluted � 20,790,942 � � 18,932,871 � � NEW MOTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands, except per share data) � � Three Months Ended March 31, � 2009 � � 2008 � � Cash Flows From Operating Activities Net loss $ (1,187 ) $ (267 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Allowance for doubtful accounts 988 (5 ) Depreciation and amortization 1,555 565 Stock-based compensation expense 341 694 Net loss on sale of marketable securities - 53 Deferred income taxes (863 ) 180 Net Loss attributable to noncontrolling interest (18 ) (29 ) Equity in loss of investee 153 - Changes in operating assets and liabilities of business, net of acquisitions: Accounts receivable 1,179 1,767 Prepaid income tax (225 ) (202 ) Prepaid expenses and other current assets (593 ) (527 ) Accounts payable 3,404 568 Other, principally accrued expenses � (5,010 ) � 449 � Net cash used in operating activities � (276 ) � 3,246 � � Cash Flows From Investing Activities Purchases of marketable securities - (4,972 ) Proceeds from sales of marketable securities 4,000 7,706 Business combinations - 10,575 Capital expenditures (214 ) (383 ) Cash paid for investments and other advances � (309 ) � - � Net cash provided by investing activities � 3,477 � � 12,926 � � Cash Flows From Financing Activities Repayments of notes payable (20 ) (171 ) Purchase of common stock held in treasury (939 ) - Proceeds from exercise of options � - � � 36 � Net cash used in financing activities � (959 ) � (135 ) � Effect of exchange rate changes on cash and cash equivalents (6 ) (92 ) � Net Increase In Cash and Cash Equivalents 2,236 15,945 Cash and Cash Equivalents at Beginning of Year � 20,410 � � 987 � Cash and Cash Equivalents at End of Year $ 22,646 � $ 16,932 � � SUPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash (paid) for interest $ (4 ) $ (7 ) Cash (paid) refunded for taxes $ (264 ) $ (900 )