MSPOT PREMIERES STREAMING FULL-LENGTH MOBILE MOVIES

Direct-to-Consumer Service to Reach Mass Audience, Available Across All Major U.S. Carriers and on Thirty Handsets Including the iPhone

Palo Alto, CA. - September 29, 2009 – Mobile entertainment firm mSpot, Inc. debuts today a service that makes instant streaming of full-length feature movies available on-demand to millions of mobile phone users. mSpot® Mobile Movies™ is now available via the mobile web on all four major U.S. carriers and initially across 30 different handset devices, including the iPhone, Blackberry, Palm, Windows Mobile and many high-end feature phones, reaching over 40 million subscribers.

The highly anticipated Mobile Movies service has been in development for over a year. During this time, mSpot perfected the streaming technology, security and inked deals with major studios. Mobile Movies marks the first direct-to-consumer component of mSpot's movie offering, which launched three years ago with streaming movies limited through Sprint and Bell Mobility.

To access mSpot Mobile Movies, consumers go to m.mSpot.com on their phone, and use a credit card to rent and stream individual movies for $4.99 each. Then they simply use their phone's web browser to access the movie instantly, no need to wait for download or syncing to a PC. mSpot's Mobile Movies selection of films includes titles such as "The Reader","Zach and Miri Make a Porno" and "Fast & Furious."

"mSpot is the first company to give mass audiences instant access to quality, full-length feature movies on their cell phones,"said mSpot CEO Daren Tsui. "This is made possible through technology we developed and the relationships we've created with studios, labels and distributors. We're now able to offer all of our rich media services to both iPhone users and the huge number of consumers who carry other mobile handsets."

mSpot operates 20 multimedia services across 10 carriers in North American, and is experienced in delivering the best movie experience on each phone. mSpot accomplishes this by matching different video encodings to each individual handset and network. There are 18 different versions of every movie title, varying by codex, bitrate and aspect ratio. The result is the best possible viewing experience regardless of handset.

At launch, mSpot has agreements with Paramount Studios and Universal Studios Home Entertainment that grant them the rights to allow streaming movies, as well as access to both new releases and past movies. mSpot plans to announce additional content partners this year to expand its movie catalog – in the coming months it expects to give fans access to thousands of movies over a hundred handset devices.

Demand for instant mobile entertainment continues to grow. According to market research firm Gartner, smartphone sales topped 40 million units in the U.S. for second quarter 2009, a year-over-year increase of 27 percent. mSpot's own extensive user testing and consumer surveys reveal strong consumer demand for instant streaming Mobile Movies: 78% of respondents were more likely to use a mobile movie service that doesn't require any downloads or wait time. 74% said it would frustrate them to have to wait 10 minutes or longer for a mobile download.

Mobile Movies is the latest major announcement from mSpot, which continues to expand its mobile entertainment vision in both user base and services. Ranking 40th on the September 2009 Inc. 500 list of fastest growing private companies, mSpot has over six million users across its services and has been profitable since 2006.

Added Tsui: "This is something no one has done before – deliver excellent quality streaming video for full-length films on the mobile device. We're excited to be the first on the market, and look forward to giving people the instant mobile entertainment they crave."

About mSpot
mSpot is a mobile entertainment company that delivers music, movies, radio and TV to more than six million mobile customers across 10 wireless carriers. The popularity of mSpot products is due to its technology and strong partnerships with all four of the major music labels (Sony, EMI, Warner and Universal), as well as major studios (Paramount, Disney, Universal, Warner Brothers) and broadcast companies (including ABC, CBS, ClearChannel, Fox Sports, NPR). mSpot is the first mobile entertainment company in North America to offer full-length feature films and full-format radio service to mobile devices. In the U.S., mSpot entertainment services are available across all major carriers, including AT&T, Sprint, T-Mobile and Verizon. Headquartered in Palo Alto, California, mSpot is on the Web at www.mspot.com.