Chalk Media Corp.
TSX VENTURE : CKM

Chalk Media Corp.

November 06, 2007 09:00 ET

Chalk Announces First Client for Mobile chalkboard™ and Provides Corporate Update

TORONTO, ONTARIO--(Marketwire - Nov. 6, 2007) - Mr. Grant Sutherland, Chairman of Chalk Media Corp. (TSX VENTURE:CKM), today provided the following corporate update to shareholders.

"Over the past several months, we have focused on the development and sale of Mobile chalkboard™, our proprietary mobile content deployment system for use on BlackBerry® smartphones. In this short period of time, we have had interest in our software from over 900 organizations, many of which are Fortune 500 companies.

I am very pleased to announce that we have made our first sale of Mobile chalkboard™. Due to confidentiality reasons, we cannot disclose the name of the company; however, I can share with you that it is a leading designer, manufacturer and marketer of wireless solutions for the mobile communications market that is a member of the Financial Times Global 500 list. Given the profile of our client, we believe this sale is a tremendous validation of Mobile chalkboard™.

As part of the latter stages of our sales cycle, we allow interested companies to evaluate our software for up to 30 days. Currently, we have six clients that have installed and are evaluating our software. We have an additional 15 to 20 enterprises, of which nine are Fortune 500 companies, that we expect will be evaluating our software in the days and weeks ahead. Clients currently evaluating our software include a global financial services firm, a global software company and a major North American telecommunications company. We estimate that these companies have approximately 150,000 BlackBerry® smartphones in aggregate.

We believe the potential market for our software is significant due to the large number of existing BlackBerry® subscribers as well as the anticipated growth of that subscriber base. As of September 1, 2007, there were approximately 10.5 million BlackBerry® subscribers. Analysts expect this number to grow to nearly 24 million BlackBerry® subscribers by the end of February 2010.

Going forward, we plan on targeting companies primarily in the financial services, professional services, telecommunication, technology and pharmaceutical sectors. We are using our direct sales force to target our top 500 opportunities. Additionally, we plan to form reseller relationships with several North American telecommunications companies to give us greater reach into many more clients.

I am also pleased to announce that approximately US$3.1 million of our US$4.2 million of convertible debentures have been converted. This conversion lowers our liabilities and increases our equity base by approximately US$3.1 million.

We will continue to keep you updated as our business progresses. Thank you for your support."

The BlackBerry® and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. RIM assumes no liability and makes no representation, warranty or guarantee in relation to third party products or services.

About Chalk Media Corp.

Chalk's new mobile content deployment system allows multimedia content to be created, securely pushed and tracked on BlackBerry® smartphones. Our software and content help organizations communicate with their employees, business partners and customers. Additional information is available at www.chalk.com.

Forward Looking Statement

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may" ,"could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Chalk to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the speculative nature of the software industry, which is affected by numerous factors beyond Chalk's control; the existence of present and possible future government regulation; the significant and increasing competition that exists in the software industry; and risks associated with early stage companies such as Chalk, including uncertainty of revenues, markets and profitability and the need to raise additional funding.

Although Chalk has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Chalk does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. Further information on Chalk Media Corp. is available at www.sedar.com.

The TSX Venture Exchange has not reviewed the contents of this release and is not responsible for its accuracy.

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