NEW YORK, March 4 /PRNewswire/ --

DAG Media, Inc. (Nasdaq: DAGM - news), a leading independent print and online publisher of yellow page directories, today announced that the Company's net advertising revenue for the year ended December 31, 2001 was $5,586,000, a decrease of 10.4% compared to revenues of $6,237,000 for year 2000.

The Company's gross profit decreased to $4,084,000 in 2001 from $4,815,000 in the 12-month period ending December 31, 2000.

In 2001, DAG Media's loss before provision for income taxes and equity in loss of affiliate was $(201,000). Its net loss was $(117,000). The company's income before provision for income taxes and equity was $173,000 and net loss totaled ($425,000) for the 12-month period ending December 31, 2000. Basic net (loss) income per common share outstanding was $(0.04) in 2001 and ($0.15) in 2000, based on the basic weighted average number of common shares of 2,907,460.

As of December 31, 2001, the Company reported $6,941,000, or approximately $2.39 per share, in cash and cash equivalents, preferred stocks and marketable securities, current assets of $11,072,000, and total assets of $12,560,000. DAG Media also reported total shareholders' equity of $8,049,000 and deferred revenues of $ 3,550,000.

``One of the major reasons for the decrease in revenues is the delay in the December 2001 edition of Jewish Master Guide. Due to the fact that the book was not published in December we could not record its sales as revenues in the year 2001. Those revenues will be recognized in the second quarter of the year 2002,'' said Yael Shimor-Golan, the company's Chief Financial Officer. ``We took several steps in order to adjust the level of expenses and minimized losses for the year,'' added Mrs. Shimor-Golan.

DAG Media Chairman of the Board and Chief Executive Officer Assaf Ran remarked, ``2001 was a very challenging year. We faced a very competitive environment in Manhattan, a very confused market following the September 11th terror attack together with a general slowdown in business activities throughout the entire year. Despite all this, we have managed to maintain sales level on our Jewish directories and make progress in penetrating the mainstream Manhattan Yellow Pages market.''

``We have made a strategic decision to expedite our growth by acquisitions which we are planning on executing in the near future,'' added Mr. Ran.

DAG Media publishes and distributes three yellow page directories in print and on the World Wide Web. DAG Media also operates a portal Web site on the Internet at http://www.newyellow.com/.

Forward-looking statements in this release are made pursuant to the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition, new products introduced by competitors, changes in the rates of subscriber acquisition and retention, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.