NEW YORK, Nov. 6 /PRNewswire-FirstCall/ -- DAG Media Inc. (Nasdaq: DAGM - News)

Net advertising revenues for the quarter ended September 30, 2002 were $1,850,000 versus $1,464,000 for the same period last year, an increase of $386,000 or 26%. The increase resulted primarily from increased sales of the Jewish Israeli Yellow Pages, the 25th edition of which was published during the third quarter. Publication of the Jewish Israeli Yellow Pages accounted for the majority of third quarter revenues. Cash and cash equivalents increased by $125,000 to $7,148,000 or $2.40 per share versus the same period last year.

Net loss for the quarter of $87,000 $(0.03 per share) compared with a net income of $124,000 ($0.04 per share) for the quarter ended September 30, 2001. The decrease resulted primarily from the consolidation of Blackbook, which, because of its publication cycle, did not generate revenue in the third quarter.

Net advertising revenues for the nine months ended September 30, 2002 were $4,805,000 compared with $4,399,000 for the same period last year, an increase of $406,000 or 9.2%. Net loss for the period was $886,000 $(0.31 per share) compared with a net income of $183,000, ($0.07 per share), in the prior year. The increase resulted primarily from increased advertising revenues from publication of the twenty-fifth edition of the Jewish Israeli Yellow Pages as well as publication of the fifth edition of the New Yellow Manhattan directory. The primary cause for the net loss was a goodwill write-off of $895,000 as required by the new SEC regulations, SFAS No. 141 and 142. Before giving effect to the goodwill write-off, net income for the nine months ended September 30, 2002 was $9,000 versus net income of $183,000 in the prior year. The company also reported $3,956,000 in deferred revenue.

Assaf Ran, Chairman of the Board and CEO stated, "We are encouraged by the increasing market penetration of our New Yellow Manhattan directory as well as by the continuing strong performance of the Jewish Israeli Yellow Pages, particularly in the face of reduced advertising budgets for many customers in today's generally slack economy. Based on the performance of New Yellow we intend to shortly open a fourth New Yellow sales office. We are also pleased with the progress we have made in restructuring Blackbook's operations and integrating it with our other activities. We expect Blackbook to contribute to our financial performance beginning with its publication of Blackbook Photography in December. Blackbook Photography is the largest directory published by Blackbook. In recognition of the importance of Blackbook to our future, our Board of Directors elected Howard Bernstein to the Board. Mr. Bernstein is the CEO and proprietor of Bernstein & Andriulli, a leading artist management agency. I'm confident that Mr. Bernstein's excellent skills and knowledge will help us better understand Blackbook's market and industry environments."

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.

 DAG MEDIA, INC.
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2002
(Unaudited)

DAG MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)