Propel Media Delivers A Profitable Second Quarter

• Revenues of $19.5 million and adjusted EBITDA of $4.2 million
• Successful integration of Future Ads with legacy Kitara Media business
• Successful launch of Propel Media corporate branding
• Investments in key initiatives position Propel Media for growth

JERSEY CITY, N.J., August 17, 2015 – Propel Media, Inc. (OTCBB: PROM), a performance focused digital media company bringing together online video, display and mobile advertising technology and solutions to advertisers, app developers and publishers, announced that it achieved revenue of $19.5 million and adjusted EBITDA of $4.2 million in its 2015 second quarter. Adjusted EBITDA was negatively impacted by a $701,000 tax benefit for the quarter as part of the approximately $35 million deferred tax asset from the Kitara-Future Ads merger in January 2015.

The Propel Media team delivered strong profitability and operational execution in our first full quarter following the merger with Future Ads despite strong ad tech industry headwinds,” said Bob Regular, Propel Media’s Chief Executive Officer. “We are pleased to have achieved several key initiatives in video, native and mobile in this quarter to fuel future growth opportunities,” said Mr. Regular. “With the consummation in Q1 of our merger with Future Ads, we have set the company on a positive course with positive EBITDA returns, as compared to the legacy performance of the public company prior to the merger,” Mr. Regular added.

Second Quarter Business Highlights:

• Product Expansion – Launched contextual native advertising solutions and enhanced our mobile video products and services.
• Technology Expansion – Launched advanced analytics and optimization tools for increased advertiser performance and retention.
• Market Expansion – Increased sales resources to open up new international markets.

“We enhanced our video platform which improves our video-on-mobile capabilities and we launched our new native ad product. Plus, we have advanced our analytics and optimization tools to substantially increase advertising performance and ad viewability,” said Marv Tseu, Propel Media President. We also invested in products and technology to further align ourselves with the current market requirements to improve advertiser performance furthering our efforts to build and sustain long-term profitable growth,” said Mr. Tseu.

Further details concerning the results of operations for the three months ended June 30, 2015 are contained in the Quarterly Report on Form 10-Q that Propel Media filed with the Securities and Exchange Commission on August 13, 2015.

About Propel Media

Propel Media is a performance driven digital media company bringing together online video, display and mobile advertising technology and solutions to advertisers, app developers and publishers. Our mission is to provide exceptional performance for our partners.

Propel Media delivers the right strategy, content and technology in front of the right audience at the right time to produce the best results. Our team brings the “how” through the advancement of multi-platform offerings, investment in proprietary advanced optimization, targeting technologies, on-going commitment to product research and development and a deep focus on ROI for all clients.

Led by industry veterans, our team of engineers, analysts, ad operations, business development and sales staff are comprised of capable, driven and determined individuals whose commitment to client services is outstanding.

The Company has offices in Irvine, CA and Jersey City, NJ. For more information visit: http://www.propelmedia.com

Forward-Looking Statements:

Certain information and statements contained in this press release, including those regarding Propel Media’s capital structure, ability to execute its operating plan, anticipated financial flexibility and other statements that are not statements of historical fact, are forward-looking statements within the meaning of federal securities laws. These statements may be identified, without limitation, by the use of forward-looking terminology such as “anticipates”, “expects,” “will” or comparable terms or the negative thereof. Such statements are based on management’s current estimates, assumptions that management believes to be reasonable, and currently available competitive, financial, and economic data as of the date hereof and we undertake no obligation to update any such statements to reflect subsequent changes in events or circumstances. Forward-looking statements are inherently uncertain and subject to a variety of events, factors and conditions, many of which are beyond the control of Propel Media and not all of which are known to Propel Media, including, without limitation those risk factors described from time to time in Propel Media’s reports filed with the SEC. Among the factors that could cause actual results to differ materially are Propel Media’s: loss of key advertising customers; inability to acquire new advertising customers; inability to expand its video content library; inability to protect its intellectual property; inability to comply with the covenants in its credit facility; inability to obtain necessary financing or enter into equity arrangements with existing or new institutional shareholders; inability to execute its acquisition strategy; inability to effectively manage its growth; failure to effectively integrate the operations of acquired businesses; competition; loss of key personnel; increases in costs of operations; continued compliance with government regulations; and general economic conditions.

Use of Non-GAAP Financial Information

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), Propel Media reports Adjusted EBITDA, which is non-GAAP financial measure. Propel Media calculates Adjusted EBITDA by taking net income and adding back depreciation and amortization, income tax benefit, interest expense and stock-based compensation. Propel Media uses this non-GAAP financial measure for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Propel Media believes that these measures provide useful information about operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP financial measures should be considered in addition to results and guidance prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP financial measures included in this press release have been reconciled to the nearest GAAP measure in the table following the financial statement attached to this press release.