MeetMe Announces Closing of Skout Acquisition and Preliminary Revenue Results

NEW HOPE, Pa.–(BUSINESS WIRE)–MeetMe, Inc. (NASDAQ: MEET), a public market leader for social
discovery, today announced that it has completed its acquisition of
Skout, Inc., a leading global mobile network for meeting new people.
MeetMe expects the acquisition, which closed on October 3, 2016, to
significantly increase both the size of its user base and its total
revenue, allowing for greater monetization, strong operating leverage
and increased profitability. Skout’s revenue for its third quarter ended
September 30, 2016 is expected to be approximately $6.6 million and its
trailing twelve months’ revenue as of September 30, 2016 is expected to
be approximately $26 million.

MeetMe also announced preliminary revenue results for its third quarter
of 2016, ended September 30, 2016. For the third quarter MeetMe expects
its standalone revenue to be approximately $17.2 million, which is
within the company’s previously provided guidance range and represents
growth of approximately 20% year over year.

Geoff Cook, CEO of MeetMe, said, “With the completion of this
acquisition, we have brought together two of the largest mobile apps for
meeting and chatting with new people, which combined have more than
eight million monthly active users and boast one of the largest mobile
user bases of the coveted millennial generation. As we continue to
capitalize on the increase in ad dollars being spent on mobile
advertising, we believe we are well positioned with our significantly
increased scale to deliver greater monetization and increased
profitability.”

In connection with the Skout acquisition, MeetMe granted stock options
to purchase an aggregate of up to 355,000 shares of its common stock to
25 former Skout employees as an inducement material to becoming
non-executive employees of MeetMe at the closing. Each option has a
ten-year term, a three-year vesting period, subject to continued
employment, and an exercise price of $6.12 per share, the closing price
per share of MeetMe’s common stock on the grant date. The grants were
made under the Company’s 2016 Inducement Omnibus Incentive Plan, which
was adopted by the Board effective October 3, 2016 in accordance with
NASDAQ Listing Rule 5635(c)(4).

MeetMe has not finalized its financial statement review process for the
third quarter of 2016. As a result, the information in this release is
preliminary and based upon information available to MeetMe as of the
date of this release. During the course of MeetMe’s review process,
items may be identified that would require MeetMe to make adjustments,
which could result in changes to our preliminary selected financial
information above. As a result, the preliminary selected financial
information above is forward-looking information and subject to risks
and uncertainties, including possible adjustments to such information.

MeetMe plans to report its final unaudited financial results for the
third quarter of 2016 and host a conference call and webcast in early
November 2016. The time and access details for the conference call and
webcast will be provided in advance of the date of the call.

About MeetMe

MeetMe® is a leading social network for meeting new people in the US and
the public market leader for social discovery (NASDAQ: MEET). MeetMe
makes it easy to discover new people to chat with on mobile devices.
With approximately 90 percent of traffic coming from mobile and more
than one million total daily active users, MeetMe is fast becoming the
social gathering place for the mobile generation. MeetMe is a leader in
mobile monetization with a diverse revenue model comprising advertising,
native advertising, virtual currency, and subscription. MeetMe apps are
available on iPhone, iPad, and Android in multiple languages, including
English, Spanish, Portuguese, French, Italian, German, Chinese
(Traditional and Simplified), Russian, Japanese, Dutch, Turkish, Korean,
Hindi, Bengali and Vietnamese. For more information, please visit meetmecorp.com.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995, including whether the Skout acquisition will significantly
increase the size of MeetMe’s user base and total revenue, allowing for
greater monetization, strong operating leverage and increased
profitability, whether Skout’s revenue for its third quarter ended
September 30, 2016 will be approximately $6.6 million, whether Skout’s
trailing twelve months’ revenue as of September 30, 2016 will be
approximately $26 million, whether our standalone revenue for the
quarter ended September 30, 2016 will be approximately $17.2 million,
whether an increasing amount of money will continue to be spent on
mobile advertising and whether we will continue to capitalize on that
increase, and whether we will be well positioned with our significantly
increased scale to deliver greater monetization and increased
profitability. All statements other than statements of historical facts
contained herein are forward-looking statements. The words “believe,”
“may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,”
“could,” “target,” “potential,” “project,” “is likely,” “expect” and
similar expressions, as they relate to us, are intended to identify
forward-looking statements. We have based these forward-looking
statements largely on our current expectations and projections about the
proposed acquisition and future events and financial trends that we
believe may affect our financial condition, results of operations,
business strategy and financial needs. Important factors that could
cause actual results to differ from those in the forward-looking
statements include Skout shareholder approval of the proposed
acquisition or that other conditions to the closing of the acquisition
may not be satisfied, the potential impact on the business of MeetMe or
Skout due to the announcement of the acquisition, the occurrence of any
event, change or other circumstances that could give rise to the
termination of the definitive agreement, the risk that the expected
benefits and synergies of the acquisition are not achieved and general
economic conditions. Further information on our risk factors is
contained in our filings with the Securities and Exchange Commission,
including the Form 10-K for the year ended December 31, 2015, the Form
10-Q for the quarter ended June 30, 2016, and the Form 8-K filed on
October 4, 2016. Any forward-looking statement made by us herein speaks
only as of the date on which it is made. Factors or events that could
cause our actual results to differ may emerge from time to time, and it
is not possible for us to predict all of them. We undertake no
obligation to publicly update any forward-looking statement, whether as
a result of new information, future developments or otherwise, except as
may be required by law.

Contacts

MEET Investor Contact:
MKR Group Inc.
Todd Kehrli
meet@mkr-group.com