Intertainment Media Inc.
TSX VENTURE : INT

Intertainment Media Inc.

October 15, 2007 08:00 ET

Intertainment Media Inc. Voluntarily Withdraws Preliminary Prospectus

Company reduces dilution given recent milestone achievements

TORONTO, ONTARIO--(Marketwire - Oct. 15, 2007) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT) is voluntarily withdrawing its preliminary prospectus offering announced on July 26, 2007, as the Company feels that it does not want to substantially dilute its current shareholder base.

The Company has achieved a number of major milestones with its online business model, primarily Eye Rock Digital.com, as it has reached the 120 Million Video View threshold, 100% sell through of select inventory, high volume of future ad bookings, and a significant increase in daily traffic and other prime metrics.

"As today's press release confirms, fundamentals and industry conditions are running ahead of management expectations, so we feel there is no need to dilute the existing shares more than necessary at this time. As the business develops, we can reduce the amount of capital required to move the business forward," said Mr. David Lucatch, CEO of Intertainment Media Inc.

The Company, subject to TSX Venture Exchange approval, will look to complete a brokered private placement to accredited investors, whereby investors will have the ability to purchase up to 4,000 convertible debentures units priced at $1,000 CDN per unit. The offering will be led by Paradigm Capital Inc. of Toronto. The company will pay 8% commission to eligible parties.

The convertible debenture will mature on or December 31, 2009, carry an eight percent (8%) interest rate, and have the ability to convert to common shares of the Company at $0.20 CDN each. In addition each convertible debenture unit will have attached 5,000 common share purchase warrants, valid for 24 months from the time of closing, with an exercise price of $0.30 CDN. The common share purchase warrants will be issued immediately upon closing of the private placement, and will not require the investor to convert the principal of the convertible debenture to common shares. The debentures will be subordinate to the Company's current debentures.

The capital raised will be used for strategic growth opportunities, and for general corporate purposes. The Company may choose to issue fewer units than the maximum as it reviews its ongoing revenue bookings.

About Intertainment Media Inc.

The Company and its divisions, develop traditional and new media marketing programs for clients to build Brand, Loyalty and Revenues.

Intertainment Media Inc., together with its wholly owned subsidiary Eye Rock Digital Inc. has acquired interest and working partnerships with a number of new media, content and technologies companies, including NO GOOD TV (www.ngtv.com), Trooker Inc. (www.trooker.com) and Itibiti.com.

Working with industry leading firms in the financial sector, real estate, insurance, media, telecommunications, entertainment, electronic games, travel, automotive and services sectors, the Company initiates proprietary business building solutions that increase customer activity and strengthen customer-vendor relationships.

The Company maintains a fully integrated creative, web, technology and graphics production facility to service its growing client base, and works with company owned and managed systems with vendors throughout North America and Europe. The Company has developed Intellectual Property (IP) solutions for managing these programs, technologies and manufacturing processes.

Intertainment Media Inc. is headquartered in Richmond Hill, Ontario, Canada. Its shares trade on the TSXV (symbol: INT).

This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not undertake any duty to update any forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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