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CoActive Marketing Group Acquires mktgpartners
Marketing Firms Combine to Elevate Alternative Marketing & Media Offering

Also available at:
http://cmkg360.client.shareholder.com/newsevents/releasedetail.cfm?ReleaseID=319028

NEW YORK, June 30, 2008 /PRNewswire-FirstCall via COMTEX News Network/ --
CoActive Marketing Group, Inc. (Nasdaq: CMKG) announced today that it has
acquired privately-held mktgpartners. Both companies, based in New York,
operate as full-service integrated marketing communications agencies and
have core competencies ranging from brand strategy, digital marketing,
consumer and trade activation, consumer promotions to experiential, sports,
relationship and buzz marketing. The acquisition, which closed today,
diversifies CoActive's client base, lessens client concentration, and is
expected to be accretive to CoActive Marketing's earnings in its current
fiscal year.

mktgpartners recorded $14.1 million in gross sales and $4.3 million in
operating revenue in calendar 2007, and brings a strong team, premier
clientele and rapidly growing business to the combined organization that
reinforces and accelerates the strategies of CoActive. Founded in 2003,
mktgpartners focuses on entertainment and sports marketing, experiential
marketing and promotional media. Headquartered in New York, with additional
offices in Chicago, San Francisco and Toronto, it supports a roster of some
of the world's most recognizable brands including BIC, Boots, CBS, Jamba
Juice, Nike VSP, and YouTube, among others.

CoActive Marketing Group announced results last week for its 2008 fiscal
year (ended March 31, 2008), reporting gross sales of $85.5 million,
operating revenue of $34.9 million, EBIT of $2.9 million and fully diluted
earnings per share of $0.21. Fiscal 2008 results were a marked improvement
over the previous year, reflecting 68% and 50% increases, respectively, in
EBIT and fully diluted EPS, as CoActive transitioned its business to the
delivery of integrated marketing programs and away from dependence on
one-off events and promotions. These substantially improved results were
realized despite a loss of $0.04 per share in CoActive's first quarter of
fiscal 2008 (ended June 30, 2007), which was primarily tied to the
transition in business mix. The just-ended first quarter of fiscal 2009 is
expected to show strong growth and solid profitability versus the first
quarter of fiscal 2008.

CoActive Marketing Group, a 36-year-old company with 245 full-time and over
4,000 part-time employees, develops and manages integrated marketing
programs designed to grow incremental sales and profits for national and
local consumer products companies. In addition to its headquarters in New
York, the company has offices in Chicago, Cincinnati and San Francisco, with
a client roster that includes Coty, Diageo, Kikkoman, Nintendo, Pepsi,
Procter & Gamble, and SAP, among others.

"It was apparent to us that mktgpartners was a great cultural fit and shared
CoActive's vision of what is possible for brands that utilize alternative
media and marketing to connect with consumers," said Charlie Tarzian, chief
executive officer of CoActive Marketing Group. "We expect this strategic
combination to immediately provide added value to clients, employees and
shareholders, as well as exciting opportunities for the future."

"We fundamentally believe that the combination with CoActive Marketing Group
addresses the client need to intrinsically link strong experiential and
digital marketing capabilities to create human networks that connect to
brands in meaningful ways," said Charlie Horsey, chief executive officer,
mktgpartners. "We further believe that the combined organization will be
able to better respond to our clients' desire to deliver high-value
integrated programming that is scalable, measurable and contextually
relevant."

Mr. Tarzian will remain chief executive of CoActive Marketing Group, and Mr.
Horsey has been named CoActive's division president for entertainment,
sports and events.

The consideration for the acquisition consisted of $3.25 million in cash,
and 332,226 shares of CoActive Marketing Group common stock, valued at
$1,000,000. Also in connection with the acquisition, CoActive issued 166,113
shares of restricted CMKG Common Stock, valued at $500,000, to certain
employees of mktgpartners who joined CoActive. Those shares, 42% of which
were issued to Mr. Horsey, vest annually in equal installments over five
years.

On June 26, 2008, CoActive closed on a $5,000,000 senior secured credit
facility with Sovereign Bank, consisting of a $2,500,000 three-year
revolving credit facility and a $2,500,000 three-year term loan. CoActive
used the proceeds of the term loan together with cash on hand to fund the
cash portion of the purchase price for the mktgpartners acquisition.

About CoActive Marketing Group, Inc.

CoActive Marketing Group, Inc. (Nasdaq: CMKG) is an integrated marketing
communications agency. The company's services include buzz and viral
marketing, social media and consumer generated media, relationship
marketing, experiential marketing, event marketing, and multi-cultural and
urban marketing. CoActive Marketing's programs help its clients profitably
connect with consumers and create brand advocates. For more information,
please visit http://www.cmkg.com

About mktgpartners

mktgpartners is an integrated marketing communications agency specializing
in entertainment and sports marketing, concept development, creative
services, experiential marketing and promotional media. For more
information, visit http://www.mktgpartners.net

SOURCE: CoActive Marketing Group, Inc.
http://www.coactivemarketing.com

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Read Charlie Tarzian's great new book at Google!
http://books.google.com/books?id=HCujx5O88-QC&dq=charlie+tarzian

Buy at Charlie Tarizian's book at Amazon
http://www.amazon.com/Innovation-Simplicity-Insights-Marketing-Master/dp/0977760065/ref=sr_11_1?ie=UTF8&qid=1214703057&sr=11-1

Charlie Tarzian's great new book
http://www.marketingmasterinsights.com

CoActive Marketing Message Board
http://www.intelsecrets.com/cmkg/index.php

Urban Concepts
http://www.urbantimes.com

There are LOTS of wonderful CoActive Marketing Group Web Sites!
http://www.locator.net