YuMe Comments on ISS Report

Urges Stockholders to Vote FOR on the WHITE Proxy Card Today

ISS Acknowledges VIEX’s Nominees’ Lack of Industry Experience

REDWOOD CITY, Calif.–(BUSINESS WIRE)–YuMe, Inc. (NYSE: YUME) (the “Company”), the global audience technology
company powered by data-driven insights and multi-platform expertise,
today commented on a report issued by Institutional Shareholder Services
(“ISS”) regarding the election of directors at the Company’s 2016 Annual
Meeting of Stockholders to be held on May 27, 2016.

“We are disappointed and believe ISS falls short by not endorsing our
entire slate of directors, however we are pleased ISS has recommended
for only one VIEX nominee, acknowledging the lack of industry experience
held by the VIEX slate. We continue to believe that our current Board is
best positioned to guide the Company as we pursue our strategic plan to
create and enhance stockholder value. We urge stockholders to protect
their investment in YuMe by voting ‘FOR’ the Board’s director
nominees on the WHITE proxy
card today.”

In its report, ISS acknowledged VIEX’s nominees’ clear lack of industry
experience, stating:

  • “…the dissidents have not nominated a candidate with industry
    expertise, despite seeking to unseat two directors with media
    experience.”* (ISS Report, May 15, 2016, pages 19)
  • “…it may not be entirely prudent at this point to remove
    recently-added two industry experts…”* (ISS Report, May 15, 2016,
    pages 19)

ISS also commented on YuMe’s recent performance, stating:

  • “Although the first quarter is typically the weakest from a seasonal
    perspective, the company still managed to post positive adjusted
    EBITDA, with a quarterly EBITDA margin of 1.2 percent, compared to
    (4.7) percent in Q1 2015.”* (ISS Report, May 15, 2016, pages 13)

*Permission neither sought nor obtained from ISS.

All stockholders of record as of March 31, 2016 are entitled to vote at
the 2016 Annual Meeting of Stockholders. YuMe encourages all
stockholders to carefully review its definitive proxy filing and other
materials and vote only their WHITE
proxy card.

For more information about YuMe’s 2016 Annual Meeting of Stockholders
Shareholders Meeting, please visit www.YuMeStockholderValue.com.

If you have questions or need assistance voting your WHITE
proxy card, please contact:

Innisfree M&A Incorporated
Stockholders in the U.S. and
Canada may call toll-free: (888) 750-5834
Stockholders in other
locations may call: + (412) 232-3651
Banks and Brokers may call
collect: (212) 750-5833

Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, which
involve risks and uncertainties. These forward-looking statements
include but are not limited to statements regarding the proposed
director nominees and YuMe’s future financial results. Actual results
may differ materially from those anticipated in these forward-looking
statements. Factors that might contribute to such differences include,
among others, that historical growth rates and results may not be
indicative of future growth rates and results; economic downturns and
the general state of the economy; our ability to expand our customer
base and increase sales to existing customers; unforeseen difficulties
executing on our strategic activities; our ability to retain and hire
necessary employees; the impact of seasonality on our business; our
ability to successfully sell, integrate or maintain our programmatic
solution; whether sufficient advertising customers or digital media
property owners adopt our programmatic solution; our ability to develop
innovative, new products and services on a timely and cost-effective
basis; client acceptance of our products and services; unforeseen
changes in expense levels; competition and the pricing strategies of our
competitors, which could lead to pricing pressure; and the effect the
announcement of the stockholder proposal and nominations may have on
YuMe’s relationships with its stockholders and other constituencies and
on our ongoing business operations. For more information regarding the
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in these forward-looking
statements, as well as risks relating to our business in general, we
refer you to the “Risk Factors” section of YuMe’s most recent Quarterly
Report on Form 10-Q and YuMe’s other filings, which are available on the
Securities and Exchange Commission (“SEC”) Web site at www.sec.gov.
These forward-looking statements are based on current expectations and
YuMe assumes no obligation to update this information.

Important Additional Information

YuMe filed a proxy statement with SEC in connection with the
solicitation of proxies for the 2016 Annual Meeting (the “Proxy
Statement”) on April 14, 2016. YuMe, its directors and certain of its
executive officers will be participants in the solicitation of proxies
from stockholders in respect of the 2016 Annual Meeting. Information
regarding the names of YuMe’s directors and executive officers and their
respective interests in YuMe by security holdings or otherwise is set
forth in the Proxy Statement. To the extent holdings of such
participants in YuMe’s securities have or will change following the
Proxy Statement, such changes will be reflected on Initial Statements of
Beneficial Ownership on Form 3 or Statements of Change in Ownership on
Form 4 filed with the SEC. Additional information can also be found in
YuMe’s Annual Report on Form 10-K for the fiscal year ended December 31,
2015, filed with the SEC on March 10, 2016, and its Quarterly Report on
Form 10-Q for the period ended March 31, 2016, filed with the SEC on May
6, 2016. Details concerning the nominees of YuMe’s Board of Directors
for election at the 2016 Annual Meeting are included in the Proxy
Statement. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND STOCKHOLDERS
OF YUME ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH OR FURNISHED
TO THE SEC, INCLUDING THE PROXY STATEMENT AND ANY SUPPLEMENTS THERETO
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and
stockholders will be able to obtain a copy of the definitive proxy
statement and other documents filed by YuMe free of charge from the
SEC’s website, www.sec.gov.
YuMe stockholders will also be able to obtain, without charge, a copy of
the definitive Proxy Statement and other relevant filed documents by
directing a request by mail to Secretary, YuMe, Inc., 1204 Middlefield
Road, Redwood City, 94063.

About YuMe

YuMe, Inc. (NYSE: YUME) is a leading provider of global audience
technologies, curating relationships between brand advertisers and
consumers of premium video content across a growing range of connected
devices. Combining data-driven technologies with deep insight into
audience behavior, YuMe offers brand advertisers end-to-end marketing
software that establishes greater brand resonance with engaged
consumers. It is the evolution of brand advertising for an
ever-expanding video ecosystem. YuMe is headquartered in Redwood City,
CA., with additional offices worldwide. For more information, visit YuMe.com/pr,
follow @YuMeVideo and like YuMe on Facebook.

YuMe is a trademark of YuMe. All other brands, products or service
names are or may be trademarks or service marks of their respective
owners.

Contacts

Investor Relations
YuMe, Inc.
Gary J. Fuges, CFA,
650-503-7875
ir@yume.com
or
Innisfree
M&A Incorporated
Jennifer Shotwell / Larry Miller, 212-750-5833
jshotwell@innisfreema.com
/ lmiller@innisfreema.com
or
Media
Relations

Sard Verbinnen & Co
John Christiansen /
Meghan Gavigan, 415-618-8750
jchristiansen@sardverb.com
/ mgavigan@sardverb.com