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SWMX, Inc. (OTCBB: SWMX.OB), a leading electronic advertising marketplace for radio and television, today announced that on October 3, 2007, SWMX, Inc. and its subsidiary, SoftWave Media Exchange, Inc., executed an amendment to the Loan and Security Agreement it had entered into with BlueCrest Capital Finance, L.P., a Delaware limited partnership. The amendment addresses several issues including waiving prior events of default and providing for a revolving loan of up to $3.5 million. As a result of the Amendment SWMX is required to make only interest payments on both the revolving loan and the existing term loan of $3 million. Both the new revolving loan as well as the existing term loan expires on January 31, 2008. As a condition to closing the Amendment, SWMX entered into a new warrant agreement whereby the Company issued BlueCrest Capital Finance, L.P. warrants to purchase 48,750,000 shares of common stock, $.01 par value of the Company, at an exercise price of $0.06 per share, as may be adjusted from time to time. In addition, the Company amended its prior warrant agreement with BlueCrest Capital Finance, L.P. to modify the number of shares subject to the warrant as well as the exercise price to 12,500,000 shares and $0.06 per share, respectively. The Warrant Agreement as well as the Amended Warrant Agreement expires on October 3, 2017. For additional information regarding the Amendment, please see the related 8-K filing located at the investor section of the Company’s website, www.swmx.com. “BlueCrest Capital Finance, L.P. continues to be supportive and has expressed confidence in our objective of becoming the leading marketplace for buying and selling traditional media,” said Josh Wexler, CEO of SWMX. “While 2007 has been a challenging year for the Company from a financial perspective, we have continued to make significant progress in enhancing the scope and quality of our marketplace technology and refining our business model to best position the Company for the future.” SWMX Exploring Strategic Alternatives The Company also announced it is in the process of exploring various strategic alternatives to best enable the organization to effectively execute on its strategy and enhance value for its customers and stakeholders. Wexler continued, “In recent months, the SWMX Board of Directors has been actively pursuing and evaluating possible strategic alternatives to enhance the Company’s underlying capital structure, liquidity and competitive position. As part of that process, the Company has engaged a team of advisors to assist the Board and management team in this process. The Company is currently in discussions with a number of potential partners, and scenarios under consideration include, but are not limited to, the sale of the Company, a partnership through equity investment, a merger with a strategically aligned organization, and other related transactions. We are working through this orderly process to explore all available strategic alternatives to ensure the realization of benefits to the Company’s customers and to best enhance stakeholder value.” In making the announcement, the Company stated that there can be no assurance that any particular alternative will be pursued or that any transaction will occur, or on what terms. The Company does not plan to release additional information regarding the status of the review of alternatives until a definitive agreement is entered into or the process is otherwise completed or abandoned. About SWMX Founded in 2006, SWMX, Inc. (OTCBB: SWMX.OB) and its wholly owned subsidiary, SoftWave Media Exchange (www.swmx.com), provide an efficient, dynamic and transparent web-based open marketplace for the purchase, sale, management and distribution of advertising media time. The SWMX Marketplace currently includes SWMX Radio™ and SWMX Television™. SWMX Radio™ (www.swmxradio.com) serves a broad range of advertisers, agencies and over 2,000 leading radio stations across the U.S. representing all of the top 15 broadcast groups, 50 of the top 50 U.S. markets, 50 of the top 50 stations and a national daily audience of over 12 million listeners, or 40% of the total U.S. broadcast radio market, according to Arbitron*. SWMX Television™ (www.swmxtv.com) serves the local spot cable market, delivering access to a daily cable audience of millions of viewers representing all major networks. The Company has also released a beta version of SWMX Television 2.0™, including enhanced functionality and expanded capabilities to support the local broadcast television market.
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