Morlex Acquires Ad Authority(R) to Form Ad Authority Group, Inc.

SAN DIEGO, April 15 /PRNewswire/ -- Ad Authority(R), a leading innovator in direct to consumer internet marketing, today announced its acquisition by Morlex, Inc. OTCBulletinBoard: MORX, an internet-focused customer acquisition Company that owns and markets newsletters and websites targeting the personal finance and trading marketplace.

Ad Authority(R) recently announced its Done Deal Ad Campaigns(TM), an innovative, technology-backed Cost-per-Close advertising platform. Together, the Ad Authority Group, Inc. will be poised to offer clients a more cost-effective, low-risk method for advertisers to find and qualify potential consumers on the internet.

Considerations for the acquisition included $5 million in cash, 6.5 million shares of Morlex common stock and a $3 million note to Jason Kulpa, Ad Authority's CEO. As part of the agreement, Jason Kulpa, current CEO of Ad Authority, signed a multi-year employment agreement and accepted the position of Chief Executive Officer of the combined organization. Mr. Kulpa owns approximately 20% of the outstanding stock in the combined entity. Management anticipates changing the organization's name to Ad Authority Group, Inc., pending shareholder approval.

Mr. Kulpa commented, "We are excited at the opportunities that this transaction will bring about and believe that we are now positioned from a strategic and capitalization perspective to execute on our business plan. We have created a differentiated organization that offers our customers higher ROI for their marketing budgets and a greater ability to monetize their internet traffic."

Ad Authority's digital assets include more than 75 million consumer records, 6 million records with more than 15 data points (demographic, geographic, contact information, etc.), more than 1,000 domains with 1.3 million unique visitors per month and propriety software including LeadX which allows users to more effectively manage higher volumes of leads per day.

Kulpa added that "I am pleased that Richard J. Berman will continue as Chairman of the Board of Directors of Morlex, Inc. With significant Wall Street experience at Goldman Sachs and Bankers Trust Company, and having served as a director of several internet and media firms, Richard will be instrumental in contributing to our efforts to maximize shareholder value."

The US online marketing industry continues to show strong growth, expanding 25% in 2007 and expected to increase by 23% in 2008 to $25.8 billion, according to eMarketer. The lead generation and referral segment of this market is the second fastest growing segment and is expected to remain so through 2011, behind only rich media/video online advertising.

Richard Berman noted that "Our business has dramatically enhanced its ability to benefit from the increasing trend towards digital advertising solutions with the acquisition of Ad Authority(R). It brings a solid asset base with digital assets in key vertical markets, such as debt consolidation, student loans, pre foreclosure and equity securities which it is able to monetize through its proprietary systems and database. The rationale for this transaction is really compelling, in that we can provide Ad Authority(R) with the ability to grow more quickly and take advantage of the current opportunities in the marketplace. By adding Superfly's Cost-per-Click business model and technology, the combined business is closer to becoming a dominant player in the industry."

About Ad Authority, Inc.

Ad Authority(R) is a San Diego-based internet marketing firm that reaches millions of consumers through proprietary technology reaching 90% of internet users through email, portals, SEO technologies, voice broadcasting and advertising network affiliations. LeadX, the company's proprietary lead management software, enables users to more effectively manage higher volumes of leads, maximize ROI and marketing efficiency. Ad Authority(R) was recently acquired by Morlex, Inc. OTCBB: MORX with plans to change its name to the Ad Authority Group. For more information about Ad Authority(R), please visit: http://www.AdAuthority.com.

About Morlex, Inc.

Morlex, Inc. OTCBB: MORX operates as an internet-focused customer acquisition company that owns and markets newsletters and websites targeting the personal finance and trading marketplace. Morlex also specializes in internet sales, pay-per-click, and internet advertising through approximately 1,000 owned domains.