NEW YORK -- Propelled by sustained strength of client demand for its core corporate communications and marketing services, Medialink Worldwide Incorporated (Nasdaq: MDLK) today reported $11.57 million in revenue for the third quarter ended September 30, 2004, exceeding its guidance range of $10.75 million to $11.25 million.

"We are pleased to report a second consecutive quarter of revenue growth with a 12% year-over-year increase in the third quarter," said Laurence Moskowitz, Chairman, President and Chief Executive Officer of Medialink. "The Company benefited from continued strengthening of the public relations marketplace, particularly in the United States."

Revenue for the third quarter ended September 30, 2004, was $11.57 million compared to $10.32 million for the comparable period in 2003. Net loss was $457,000 or $0.08 per share, as compared to a net loss of $1.07 million or $0.18 per share reported in the comparable quarter in 2003. Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") was $229,000 compared to negative $516,000 in the 2003 third quarter. Operating Cash Flow, defined as EBITDA excluding loss from Teletrax(TM) and other charges, was $611,000 for the third quarter as compared to $535,000 for the comparable period in 2003. Selling, general and administrative costs in the third quarter of 2003 included approximately $592,000 in restructuring charges related to the sublease of excess office space in Norwalk, Connecticut. Medialink considers EBITDA and Operating Cash flow to be important financial indicators of the Company's operational strength, performance of its business and its ability to service its line of credit, as well as to make new investments in its services.

Revenue for the nine months ended September 30, 2004, was $34.15 million compared to $32.98 million for the comparable period in 2003. Net loss was $1.47 million or $0.24 per share compared to a net loss of $2.35 million or $0.39 per share reported in the 2003 comparable period. EBITDA was $567,000 compared to negative $663,000 in the 2003 comparable period. Operating Cash Flow, which excluded an impairment charge on investments in 2004 and a restructuring charge in 2003, was $2.04 million in 2004 compared $1.59 million in 2003.