SOURCE: Virtual Media Holdings Inc.

October 04, 2007 09:30 ET

Annual General Meeting Cancelled for Virtual Media Holdings Inc.

VANCOUVER, BC--(Marketwire - October 4, 2007) - Mr. Jim Carroll, CEO of Virtual Media Holdings Inc. (OTCBB: VMHIF), announced that the annual general meeting scheduled for October 5, 2007 has been postponed. The postponement arises because a concern was raised that the notice given of the meeting did not meet all requirements of the applicable regulations under the B.C. Business Corporations Act. The meeting will be rescheduled to ensure that the conduct of the meeting is fully compliant with regulatory requirements.

Pending rescheduling of the annual meeting, the Company wishes to provide an update of certain current issues.

The Company is continuing in its efforts to complete an audit of the financial statements for the period ended June 30, 2006. This will require a forensic audit of certain transactions. The Company will retain the firm of Wolridge Mahon Limited to undertake that aspect of the audit process.

Attempts to resolve ongoing litigation concerning the Company have been unsuccessful. All actions involving the Company are now proceeding before the courts.

The Company has identified a number of irregularities in previous transactions involving shares in the Company. The Company has instructed its solicitors to inform the Securities and Exchange Commission of possible infringements of US securities legislation.

The Company has asked that shareholders approve a 1 share for 10 shares rollback, the reason for this request is that management has been in discussion with a group to bring an investment- and product-lines manufacturer in China into the company. These products would be branded under our name and provide excellent profit margins. In order to move the company forward, a higher share price and smaller float is required if we are to be successful in growing the company.

We have closed the website as the income derived from the sale of other sellers' DVDs, Books and Video Games proved to be unprofitable, we have redesigned the format of our website and plan to sell products we purchase on the website that will provide us with higher profit margins when it is relaunched.

Management will provide details of the new date for the Annual General Meeting within 10 business days from today.

This press release contains forward-looking statements involving risks and uncertainties including statements regarding the Company's future performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors which include, but are not limited to, our ability to leverage our technology, manage our growth, protect our intellectual property rights, attract new customers and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism and the conflict with Iraq. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.

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