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Monotype Reports Inducement Grants Under Nasdaq Marketplace Rule 5635(c)

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Monotype Imaging Holdings Inc. (Nasdaq: TYPE), a leading provider of typefaces, technology and expertise for creative applications and consumer devices, today announced that in association with its Jan. 30, 2015 acquisition of Swyft Media, and in compliance with Nasdaq Marketplace Rule 5635(c), Monotype has granted equity awards as inducement awards to employees of Swyft Media who have joined Monotype.

Under the terms of the agreement, Monotype acquired the privately held Swyft Media via a merger transaction for approximately $12 million. The transaction also includes an opportunity for the Swyft Media shareholders to realize up to $15 million in additional consideration based on attainment of certain performance criteria through 2017. The transaction is subject to typical purchase price adjustments.

In connection with the transaction, Monotype has awarded 26,760 shares of restricted common stock to Evan Wray, the former president and chief executive officer of Swyft Media who is now the vice president and general manager of Monotype’s Swyft Media subsidiary, and 26,760 shares of restricted common stock to Sean O’Brien, the former vice president and chief operating officer of Swyft Media who is now the vice president and operations manager of Monotype’s Swyft Media subsidiary. These awards were issued on Feb. 2, 2015 and the shares of restricted common stock were issued to each individual with no payment by such individual for the shares.

The inducement awards described above vest in full on the fourth anniversary of the issuance of the award. These awards are subject to possible accelerated vesting under certain circumstances. Each of the inducement awards was approved by the management development and compensation committee of Monotype’s board of directors on Jan. 29, 2015, in each case subject to the closing of the transaction.

Forward-looking statements

This press release may contain forward-looking statements, including those related to expected growth in Monotype’s offerings in branded, mobile content that involve risks and uncertainties that could cause the company’s actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: risks associated with changes in the economic climate, and risks associated with the company’s ability to integrate the acquisition, including the expansion of products and services offered through the acquired company. Additional disclosure regarding these and other risks faced by the company is available in the company’s public filings with the Securities and Exchange Commission, including the risk factors included in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2013 and subsequent filings. The financial information set forth in this press release reflects estimates based on information available at this time. While Monotype may elect to update forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so, even if an estimate changes.

About Monotype

Monotype is a leading global provider of typefaces, technology and expertise that enable the best user experience and ensure brand integrity. Headquartered in Woburn, Mass., Monotype provides customers worldwide with typeface solutions for a broad range of creative applications and consumer devices. The company’s libraries and e-commerce sites are home to many of the most widely used typefaces – including the Helvetica(R), Frutiger(R) and Univers(R) families – as well as the next generation of type designs. Further information is available at Follow Monotype on Twitter, Instagram and LinkedIn.

Monotype, Helvetica and Frutiger are trademarks of Monotype Imaging Inc. registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. Univers is a trademark of Monotype GmbH registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. All other trademarks are the property of their respective owners. (c)2015 Monotype Imaging Holdings Inc. All rights reserved.

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