24/7 Real Media Reports Strong Q1 Results; Company Exceeds First Quarter Revenue and Pro Forma Earnings Guidance; Raises Guidanc

24/7 Real Media, Inc. (Nasdaq: TFSM):

   First Quarter Highlights:

   --  Revenue of $29.1 million, an increase of 67% over the
        comparable period in 2004.

   --  Pro forma operating income of $0.03 per share compared with
        $0.01 per share in Q1 of 2004; GAAP net loss $0.01 per share
        versus a loss of $0.02 per share in Q1 of 2004.

   --  Global roll-out of award-winning Search Engine Marketing
        platform.

   --  Opening of Tokyo branch office.

   --  Inaugural Quarterly Behavioral Targeting Research Report
        published.

   24/7 Real Media, Inc. (Nasdaq: TFSM), a pioneer in interactive
marketing and technology, today announced financial results for the
first quarter ended March 31, 2005. Revenue for the first quarter of
2005 was $29.1 million, a sequential gain of 6% from the $27.5 million
reported during the fourth quarter of 2004, and an increase of 67%
over the $17.4 million reported for the first quarter of 2004.
   Pro forma operating income(1) for the first quarter of 2005 was
$1.3 million, or $0.03 per share. This compares with pro forma
operating income of $0.3 million, or $0.01 per share, for the first
quarter of 2004.
   Net loss computed in accordance with generally accepted accounting
principles (GAAP) for the first quarter of 2005 was a loss of $0.4
million, or $0.01 per share, compared with a loss of $0.5 million, or
$0.02 per share, for the first quarter of 2004.
   "The Company enjoyed an outstanding first quarter, substantially
growing revenues and improving operating performance during what is
traditionally a seasonally weak period," stated David J. Moore,
chairman and chief executive officer of 24/7 Real Media. "We continued
making progress on key initiatives, including the global roll-out of
our critically acclaimed Search Engine Marketing franchise, the
opening of our Tokyo office, and the inaugural publishing of our
Quarterly Behavioral Targeting Research Report."
   "All our businesses are performing very well. For the balance of
2005, we are poised to continue capitalizing on the positive trends in
the market, including increased spending online and the rapid growth
of paid search," Mr. Moore concluded.

   Segment Overview

   Revenue in the Media Solutions segment climbed 42% to $14.2
million in the first quarter of 2005 from $10.0 million in the first
quarter of 2004. Gross margins were 32.3%, in-line with the long-term
guidance of approximately 30%.
   Search Solutions revenue advanced 219% to $9.6 million from $3.0
million in the first quarter of 2004. Gross margins for the segment
were 31.1% in the first quarter of 2005. Year-over-year comparisons
for this segment are influenced by the acquisition of Decide
Interactive in the third quarter of 2004.
   Technology Solutions revenue climbed 20% to $5.2 million in the
first quarter of 2005 from $4.3 million in the first quarter of 2004.
Technology revenue benefited from a greater volume of impressions, a
level higher than what would be expected given the seasonal trends
typical of the first quarter. Technology gross margins remained stable
at 81.0%.

   Guidance

   The Company expects second quarter revenue for 2005 to be between
$30 million and $31 million, the mid-point of which represents an
increase of 56% from second quarter 2004 revenue of $19.6 million. The
Company expects diluted pro forma operating income per share in the
second quarter of 2005 to be between $0.03 and $0.04 per share.
   The Company now anticipates full year 2005 revenue to be in the
range of $118 million to $123 million, the mid-point of which
represents an increase of 41% from revenue of $85.3 million in 2004.
The Company anticipates pro forma per share earnings for the full year
of $0.14 to $0.17.
   In conjunction with this release, a conference call will be held
at 8:30 a.m. EDT on Thursday, May 5 to discuss these results. The call
will be broadcast live over the Internet at
www.247realmedia.com/about/investor. Please allow extra time to visit
our Web site prior to the call and download the streaming media
software required to listen to the Internet broadcast. The online
replay of the broadcast should be available within two hours following
the live call and will be available for three weeks.

   About 24/7 Real Media, Inc.:

   24/7 Real Media, a pioneer in interactive marketing and
technology, targets and delivers audiences for publishers and
marketers. Our customers generate increased revenue and profits
through media and search services, coupled with one seamless platform
of serving, targeting, tracking and analytics technologies. The
company is headquartered in New York, with offices in other major U.S.
cities, Canada, Europe and Asia. For more information, please visit
www.247realmedia.com. 24/7 Real Media: Delivering Today. Defining
Tomorrow.

   Caution concerning forward-looking statements:

   Certain statements in this news release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. For instance, words such as "expects,"
"anticipates," "predicts," "guidance" and similar expressions identify
forward-looking statements. Forward-looking statements also include
any other passages that relate to expected future events or trends
that can only be evaluated by events or trends that will occur in the
future. Some of the forward-looking statements in this news release
include, without limitation, statements regarding the expected
financial performance for the second quarter of 2005 and for the full
year 2005. Investors are cautioned not to place undue reliance upon
these forward-looking statements, which speak only as to the date of
this release. Except as required by law, 24/7 Real Media undertakes no
obligation to update any forward-looking or other statements in this
news release, whether as a result of new information, future events or
otherwise. The forward-looking statements are based on the opinions
and estimates of management at the time the statements were made and
are subject to substantial risks and uncertainties that could cause
actual results to differ materially from those anticipated in the
forward-looking statements. These substantial risks and uncertainties
include, among others, the risks that the company may not successfully
complete the integration of Real Media Korea and Decide Interactive,
both of which it acquired in 2004; that it may incur unforeseen
expenses or loss of revenue relating to such acquisitions;
geopolitical, exchange rate and other risks associated with
international operations, which currently comprise the majority of the
Company's revenue; the potential loss of key employees and inability
to attract qualified new employees due to a very competitive and
tightening job market; risks that the Company's technology will fail
to scale to meet the increasing demands brought about by increased
business levels; risk that the Company's technology services will be
disrupted by terrorist attack or malicious intrusion, and that the
Company's back-up facilities and disaster recovery plans will not be
sufficient when needed; customer concentration risks; unanticipated
loss of clients or delays in anticipated business; the potential for
enhanced competition from companies with substantially greater
resources than those of the Company; potential deterioration or
slower-than-expected growth in the Internet advertising market; the
very short-term nature of the company's contracts with clients; and
the uncertainties, potential costs, and possible business impacts of
potential new legislation, litigation or regulatory investigation
involving the company. More information about factors that could cause
actual results to differ materially from those predicted in the
Company's forward-looking statements, as well as additional
information regarding the Company's business and financial results and
condition, is set out in its annual report on Form 10-K for the year
ended December 31, 2004, filed with the Securities and Exchange
Commission, and will be set out in its Quarterly Report on Form 10-Q
for the three months ended March 31, 2005, which the Company expects
to file with the Securities and Exchange Commission on or before May
16, 2005. Investors are strongly encouraged to read the Company's Form
10-K, Forms 10-Q and other filings with the Securities and Exchange
Commission in their entirety.

   (1) Pro forma operating income is a non-GAAP financial measure.
24/7 Real Media believes pro forma reporting provides meaningful
insight into the Company's ongoing economic performance and therefore
uses pro forma reporting internally to assist in evaluating and
managing the Company's operations. A full reconciliation of GAAP net
income to pro forma operating income appears in the financial
statement portion of this release.
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                         24/7 REAL MEDIA, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
            (in thousands, except share and per share data)

                                                  Three months ended
                                               -----------------------
                                                       March 31,
                                                   2005        2004
                                               ----------- -----------
                                               (unaudited) (unaudited)

Revenues:
   Media                                          $14,229     $10,023
   Search                                           9,622       3,016
   Technology                                       5,219       4,342
                                               ----------- -----------
         Total revenues                            29,070      17,381
                                               ----------- -----------

Cost of revenues:
   Media                                            9,627       6,983
   Search                                           6,632       2,458
   Technology                                         992         822
                                               ----------- -----------
         Total cost of revenues                    17,251      10,263
                                               ----------- -----------

         Gross profit                              11,819       7,118
                                               ----------- -----------

Operating expenses:
   Sales and marketing                              5,290       3,316
   General and administrative                       4,584       2,982
   Product development                              1,242       1,051
   Other expenses:
       Amortization of intangible assets and
        deferred financing costs                    1,140         788
       Stock-based compensation                       513         199
       Restructuring costs                            973           -
                                               ----------- -----------
         Total operating expenses                  13,742       8,336
                                               ----------- -----------
         Operating loss                            (1,923)     (1,218)

Interest income (expense), net                        (88)       (182)
Change in fair value of warrant liability             150         928
Recovery of investment                              2,100           -
Impairment of investment                             (588)          -
Other income (expense), net                           (46)        180
                                               ----------- -----------

Loss before income taxes                             (395)       (292)
Provision for income taxes                            (11)       (100)
                                               ----------- -----------

Net loss                                             (406)       (392)

Dividends on preferred stock                          (12)       (118)
                                               ----------- -----------
Net loss attributable to common stockholders        $(418)      $(510)
                                               =========== ===========

Basic and diluted net loss attributable to
 common stockholders per share                     $(0.01)     $(0.02)
                                               =========== ===========

Weighted average shares used in basic and
 diluted calculation                           44,831,154  25,618,029
                                               =========== ===========

Pro forma:

Operating income (a)                                1,301         257

Diluted operating income per share                  $0.03       $0.01
                                               =========== ===========

Weighted average shares used in diluted
 calculation                                   49,960,553  36,725,253
                                               =========== ===========


       (a)Proforma operating income excludes
          certain other expenses computed as
          follows:

       Operating loss                           $(1,923)    $(1,218)
       Excluding:
         Amortization of intangible assets and
          deferred financing costs                1,140         788
         Stock-based compensation                   513         199
         Restructuring costs                        973           -
         Depreciation                               598         488
                                               ----------- -----------
       Pro forma operating income                $1,301        $257
                                               =========== ===========


                         24/7 REAL MEDIA, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEET
                            (in thousands)

                                               March 31,  December 31,
                                                  2005       2004
                                               ---------  ------------
                                              (unaudited) 

Cash                                              $30,047     $27,690
Accounts receivable                                27,595      28,224
Total current assets                               63,682      62,500
Total assets                                      123,024     121,398
Accounts payable and accrued liabilities           29,712      28,233
Deferred revenue                                    3,040       3,222
Total current liabilities                          40,252      38,955
Long term debt                                      6,584       6,431
Total liabilities                                  47,545      46,130
Total stockholders' equity                         75,479      75,268

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