Media Layers' SMART System Enables Cellcom's Revolutionary "Time is Money" Advertising Model

HERZLIYA, Israel – Media Layers, the pioneer in multi-channel mobile and Internet advertising solutions, announced today a new functionality of its SMART system that enables mobile operators to award customers with free air time for watching commercials on the Internet. This functionality includes advertiser’s questions at the end of the commercial, which viewers must answer to prove they have been paying attention.

Cellcom, Israel’s largest mobile phone operator with 3.1 million subscribers, launched last month the new advertising model based on the SMART system. The “Time is Money” program enables subscribers to accumulate up to 45 monthly minutes of free air time in exchange for watching commercials on Cellcom’s Web site. After watching each minute-long commercial, viewers answer one or two questions from the advertiser to prove they had indeed been watching. In the future, the program is planned to expand to include also SMS and mobile Internet credit.

Adi Cohen, Cellcom’s vice president of marketing, said the initiative entitled “Time is Money” was targeted mainly at teenagers, students and others up to age 30. “It is a way for us to attract young new subscribers,” said Mr. Cohen, noting it will allow Cellcom to make its service cheaper to customers without the company having to finance it. Major advertisers such as Coca-Cola, Nokia and Sony-Ericsson have already signed contracts to advertise on Cellcom, he said.

Media Layers’ SMART system was chosen by Cellcom and Logia and is already deployed in Cellcom’s network. Advertising over mobile video services will be launched soon, and this will be expanded to additional content services and channels.

Media Layers’ SMART system is uniquely based on a real-time approach, enabling mobile operators and content providers to insert mobile ads into all content channels – Mobile Internet, messaging, video and audio streaming and download, Ringback Tone, and more. In video, the cutting edge of mobile content, SMART provides for ad insertion in multiple fashions – before, during or after viewing the chosen content; in a split screen; as an overlay (picture in picture); and in various other methods. Additionally, the matching of ads to the users is done in real time, thus presenting each and every user with relevant ads which are perceived as valuable and which lead to a high return on investment for the advertisers.

About Media Layers

Media Layers is a world pioneer in multi-channel, real-time personalized mobile advertising. The company’s SMART solution provides a “one-stop-shop” synchronizing players across the entire value chain – mobile operators, advertisers and content providers – enabling the targeting of users with highly personalized and rich media ads, creating an optimal user experience.

SMART, an end-to-end, 3-layered solution, encompasses mobile advertising’s 3 key elements – end users, advertising campaigns and rich media. SMART uniquely manages the entire advertising process in real time. Based on dynamic predictive modeling tools, it provides the most accurate targeting, while maximizing relevance and end-user value. This unique real time approach, combined with innovative video and rich media technology, provides an exciting, high-value user experience leading to new revenue streams for mobile operators and service providers and superior ROI for advertisers and brands.

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About Cellcom

Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its 3.073 million subscribers (as at December 31, 2007) with a broad range of value added services including cellular and landline telephony, roaming services for tourists in Israel and for its subscribers abroad and additional services in the areas of music, video, mobile office etc., based on Cellcom Israel’s technologically advanced infrastructure. The Company operates an HSPA 3.5 Generation network enabling the fastest high speed content transmission available in the world, in addition to GSM/GPRS/EDGE and TDMA networks. Cellcom Israel offers Israel’s broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Cellcom Israel’s shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL).

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About Logia

Logia is a leading mobile content company located in Israel with activities in the USA, Europe and Asia. The company has developed a full suite of unique mobile applications that are marketed worldwide, and manages all content-related value-added services for Cellcom, Israel’s largest mobile operator with more than 3 million customers.

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