Scala Commended for Strong Growth and Dominant Market Share by Frost & Sullivan

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Frost and Sullivan has placed Scala, Inc. at 35.4% worldwide market share of the Digital Signage software industry.

With tremendous growth for the past 2 years and sales into more than 60 countries, Scala continues to solidify its position as the global leader in the Digital Signage industry. This report reinforces that position.

Scala, Inc., the leading provider of end-to-end solutions for the Digital Signage market announced that Frost and Sullivan has placed Scala, Inc. at 35.4% worldwide market share of the Digital Signage software industry.
In a newly released research report entitled "World Digital Signage Markets," Frost & Sullivan undertakes a strategic analysis of the worldwide Digital Signage industry and makes strategic recommendations for growth in the industry.

According to the report the World Digital Signage Systems market grew 21.3% in revenue in 2006. Scala significantly outpaced this growth with an increase in sales of 59% (vs. 2005). Frost & Sullivan expects the World Digital Signage Systems market to grow from $313.9 million in revenues in 2006 to over $1 billion in 2012 at a compound annual growth rate (CAGR) of over 20% and Scala expects to continue to outpace this growth rate. The overall ease of installment, network flexibility and management, the ability to remotely control multiple screens, and increased reliability are driving growth in the market.

The report identifies three tiers of Digital Signage software providers, of which, Tier I is comprised of software vendors with a global presence and a large capital base. Frost and Sullivan places Scala squarely in the Tier I category. The revenues of Tier I companies far exceed that of Tier II and Tier III companies. With Tier I companies holding more than 60% of the market -- Scala commands a 35.4% overall market share position. With as many as 50 competitors in the Digital Signage market, Scala is the only Digital Signage software company that Frost & Sullivan positions with the highest ability to deliver multifactor solutions and the highest market penetration.
Frost & Sullivan suggests that ultimately, the success of a Digital Signage network is based on its ability to deliver relevant content to customers at the right time and location. Digital Signage provides a unique opportunity for brand building as well as a strategic channel to influence customer behavior. Digital Signage can create a stimulating environment where the customer's long and short-term behavior can be shaped, which ultimately results in sales lifts that can justify the initial implementation costs according to Frost & Sullivan.

"Scala has built on the success of its InfoChannel 3 product, with the June 2006 launch of InfoChannel 5. The combination of powerful tools for content creation and network management pushed Scala to 35+% market share for 2006," stated Rufus Connell, Vice President - Information and Communication Technology for Frost & Sullivan.

"The Frost & Sullivan report not only confirms the dominant market share Scala has earned in the global Digital Signage Industry but forecasts healthy continuous growth," said Scala CEO Gerard Bucas. "With tremendous growth for the past 2 years and sales into more than 60 countries, Scala continues to solidify its position as the global leader in the Digital Signage industry. This report reinforces that position."

The Frost & Sullivan report focuses on digital signage deployments whose business model revolves around merchandising or advertising, and excludes digital signage applications that focus on corporate communications, flight simulation displays, security and cable TV. It is important to note that Scala is seeing growth in these excluded areas as well, and expects them to continue to grow at aggressive rates.

About Frost & Sullivan
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information, visit http://www.awards.frost.com/.

About Scala
Founded in 1987, Scala pioneered the Digital Signage industry and today remains the world's largest provider of software for creating Digital Signage networks, driving more screens than all competitors combined. The company's InfoChannel product line is used for dynamic digital media networks in retail, education, entertainment, government and other industries for diverse applications such as Retail Advertising networks (Retail TV), Corporate Communications (Employee TV), Digital Billboards, Digital Menu Boards, Digital Posters, Community Access channels (Cable TV), Hotel lobby signage and information channels, Gas Pump "toppers", Convention Center Signage, Interactive touch-screens and Kiosks, etc. The Company's cutting-edge InfoChannel software platform powers thousands of digital signs around the world including the Digital Signage networks of Rabobank, IKEA, Bloomberg, Burger King, T-Mobile, Virgin MegaStore, EuroDisney, Kiwi, McDonalds, Warner Brothers, Santiago Airport, Ericsson, The Life Channel, Rikstoto, FuelCast, Repsol, Shell, NorgesGruppen, The Wall Street Journal Office Network and many more. Scala is today headquartered near Philadelphia, PA and has wholly-owned subsidiaries in The Netherlands, France, Norway, and Japan with a direct presence in a number of other locations and countries. Scala's products are primarily sold through an international network of Scala Certified Partners. More information is available at http://www.scala.com.

Contact:
Richard F Trask
Director of Public Relations
Scala Inc.
http://www.scala.com

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