NEW YORK, NY--(Marketwire - August 19, 2008) - ContextWeb, Inc., a leading contextual advertising company and operator of the ADSDAQ Exchange, today announced that it has developed and implemented "next generation" algorithms that have resulted in deeper, niche classification of the millions of Web pages that are part of the ADSDAQ Exchange. Unlike any other ad exchange or network, ContextWeb's proprietary technology reads millions of pages of content in real time, deduces what each is about and allows advertisers to target audiences interested in that content.

The new algorithms, developed and tested by in-house ADSDAQ mathematicians and software engineers, have produced the following achievements:

1)  Automatically discovers additional keywords for existing exchange
    content categories, which increases the number of keywords for
    categorization by ten fold.  This enables the ADSDAQ exchange to
    be able to discern niche subcategories more efficiently. For
    example, a page of golf content that had previously been
    categorized as "sports" now will be categorized additionally in
    the sports subcategory of "golf."

2)  Automatically discovers keywords to define new categories chosen
    specifically by advertisers as those content topics become
    relevant; e.g. "American Idol" or "Olympics."  This will allow
    advertisers to use hot topics to continually target their audience
    for maximum engagement.

3)  Provides a platform that is language-independent; allowing the
    discovery of keywords and phrases in real time across content in
    every language.

With the new approach, the system can learn to categorize automatically with no human management. Results of new algorithm performance across the more than 7,000 sites on the ADSDAQ exchange show huge gains in category refinement.

"Our new algorithms open up millions of pages of additional ad inventory in very targeted, niche categories. This is great news for brand advertisers who want assurance that their ads appear in 'clean, well lit' places, adjacent to content that supports their messages and pulls in traffic of people in a mindset for the brand's message," says Shanthi Sarkar, Chief Product Officer at ContextWeb, Inc. "For performance advertisers, getting their offers in front of the right audience allows them to meet their performance metrics. This is also great news for publishers who can more effectively monetize content pages deep within their sites."

ContextWeb, Inc. (http://exchange.contextweb.com) was founded in 2000 and launched the ADSDAQ Exchange in 2005. It is the only online exchange where both advertisers and publishers have complete control. The exchange's patent-pending, page-level contextual technology offers advertisers efficient pricing and extensive reach, making inventory on the exchange "brand-safe" and comparable to a site-specific or portal buy. The ADSDAQ Exchange ranks among the top 20 ad-supported properties, according to comScore Media Metrix, and reaches +100 million monthly unique visitors (May, 2008). The exchange includes more than 400 advertisers, including all of the top 10 marketing organizations, and more than 7,000 publishers. In 2007, Deloitte's New York Region Technology Fast 50 recognized ContextWeb as the 17th fastest growing company in the New York area. The company's investors include leading venture capital firms Draper Fisher Jurvetson ("DFJ"), DFJ Gotham Ventures, Updata Partners, Investor Growth Capital and Gold Hill Capital.