Ha yden Communications Investors: Brett Maas

QUARTER AND ANNUAL RESULTS

Increase 98% Year-Over-Year; Up 33% Sequentially;

Ends the Year with Active, Billable Subscriber Base Exceeding

Motion, Inc, doing business as Atrinsic, (NASDAQ: NWMO), a premier mobile

entertainment company,

reported its financial results for the fiscal fourth quarter and year ended

December 31, 2007. The results do not reflect the merger with Traffix, Inc.,

which was completed on February 4, 2008.

revenue for the fourth quarter of fiscal 2007 was $13.9 million, an increase

126%, or $7.8 million, from $6.2 million in the comparable quarter of fiscal

2006. For comparison purposes, revenue for the fourth quarter increased 33%

sequentially compared to the $10.5 million for the third quarter of 2007. The

year-over-year and sequential increases in revenue were directly attributable

an increase in the Company's subscriber base.

Katz, the Company's CEO, commented, "The fourth quarter represented a strong end

to an exciting year, as we benefited from the investments made in new products,

technology infrastructure and our unique business model. We exceeded 825,000

active, billable subscribers as of the end of the year. Just as importantly,

cost per subscriber, a critical operating metric for the Company, remained

highly competitive rate of below $10 per customer. We enter 2008 with a new

corporate branding strategy, wholly owned content, proprietary premium-billed

products and a robust distribution network. I remain very excited about the

future outlook for Atrinsic."

profit for the quarter was $12.6 million, or 90% gross profit margin compared

gross profit of $5.9 million, or 96% gross profit margin in the prior-year

fourth quarter. Total operating expenses for the quarter were $13.7 million,

108% compared to total operating expenses of $6.7 million in the prior-year

fourth quarter. The Company's loss from operations for the fourth quarter was

approximately $1.2 million, an increase of approximately 45% compared to the

fourth quarter of fiscal 2006's operating loss of $0.8 million. The loss from

operations declined sequentially by 46% compared to $2.1 million in the third

fiscal quarter of 2007. Factors impacting the Company's comparable periods

operating loss were an increase of $4.6 million in marketing expenditures and

approximate $2.8 million increase in general and administrative expenses,

principally attributable to increases in employee headcount to build out the

Company's product line.

Katz continued, "We closed our merger transaction on February 4, 2008, where we

effectively acquired Traffix, Inc., an Internet marketing company that had

traded on the NASDAQ prior to the acquisition. Already, as part of our

integration efforts, we have identified merger-related efficiencies which will

reduce our marketing expenses. We are currently working to identify and map

additional synergies which when completed and approved by the Board will provide

other near-term and longer-term expense reductions. We are targeting, as an

initial goal, at least $3.5 million in additional annualized operating

efficiencies as a result of the merger and integration. In the four weeks since

the merger's effective date, my optimism and confidence has been reinforced as

we have made great progress in assembling a powerful organization poised to

become a recognized leader in a rapidly expanding space. As previously announced

our Board approved the adoption of the Atrinsic brand name, we have moved to

secure such brand as a DBA until such time that we can present such name change

to our shareholders for their approval."

loss for the fourth quarter of fiscal 2007 was approximately $0.9 million,

increase of 137%, from a net loss of $0.4 million, in the comparable quarter

fiscal 2006. Based on 12.0 million diluted shares at December 31, 2007, the

per share was $0.08 compared to a loss per share of $0.05 for the prior-year

fourth quarter, based on 7.3 million diluted shares.

revenue for the year ended December 31, 2007 was $37 million, an increase of

98%, or $18.3 million, from $18.7 million in fiscal 2006. The loss from

operations for the year was approximately $5.5 million as compared with

approximately $1.5 million of income from operations in fiscal 2006. The

operating loss was the result of an increase of $13 million in marketing

expenditures and an approximate $7.8 million increase in general and

administrative expenses, principally attributable to increases in investments

new products and employee headcount.

forma basis, giving consideration to the February 4, 2008 merger as having

occurred on January 1, 2007, net revenue for fiscal 2007 would have approximated

$114.3 million on a pro forma basis. Pro forma gross profit for the Fiscal

would have approximated $45.2 million, and the pro forma loss from operations

would have approximated $4.7 million. This $4.7 million pro forma loss from

operations included over $1.5 million in professional and other related expenses

directly attributable to the merger that were expensed by Traffix. In accordance

with accounting rules, New Motion capitalized all of their related merger costs

as a component of the purchase price. Pro forma basic and diluted loss per

would have approximated $0.17 per share, compared to New Motion's stand alone

reported basic and diluted loss per share of $0.37. Note that Traffix also

disproportionately high effective tax rate in the pro forma Fiscal 2007 period

due to the permanent difference arising out of the fees and expenses

attributable to the merger that did not yield a tax deduction for such period.

In terms of earnings per share, this amounted to approximately $0.04, and would

have reduced pro forma loss per share, at both the basic and diluted levels,

approximately $0.14. On a pro forma basis, the combined organization completed

the year with $35 million in cash and 25.8 million fully diluted shares

Katz added, "The merger with Traffix has positioned Atrinsic

as the fastest-growing mobile entertainment and digital advertising network

the domestic U.S. market. Atrinsic brings to the markets a truly unique business

model that combines the power of Internet media with the latest in mobile

entertainment, creating an unequalled competitive advantage. We achieve this

competitive advantage by first leveraging the growing convergence trend between

the scale of the internet with the portability of the mobile handset; second,

create a formidable vertically integrated digital media company that owns

proprietary content, creates exclusive direct-to-consumer products, and owns

own media and distribution network. Finally, Atrinsic is able to monetize its

audience through a subscription-based revenue model billed directly to a

consumer's cell phone, in addition to third-party advertising revenue. With

Atrinsic's complete set of content, distribution, and proprietary

direct-to-consumer products, we have truly positioned the company to service

fast growing mobile entertainment and digital advertising markets."

first quarter is tracking toward our internal expectations and validating our

rational for the merger," said Mr. Katz. "With the quarter nearly complete, we