Intertainment Media Inc.
TSX VENTURE : INT

Intertainment Media Inc.

October 22, 2009 18:00 ET

Intertainment's Itibiti Systems Closes Financing

TORONTO, CANADA--(Marketwire - Oct. 22, 2009) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT) announces that its wholly owned subsidiary, Itibiti Systems Inc. ("Itibiti Systems") has closed on $2,733,147.84 for its previously disclosed offering of convertible debentures as detailed in the press release dated September 2, 2009 (the "Offering"). The funds are being used to commercialize the launch of itiBiti and for general working capital requirements.

The convertible debentures ("Debentures") of Itibiti Systems consist of convertible debentures ("Debentures") at a subscription price of $50,000 CDN per Debenture which, unless otherwise authorized, will be payable at 12% interest per year, paid semi-annually. Each Debenture will be convertible into the Debenture holder's choice of (a) units of Intertainment ("Units") at a conversion price of $0.175 per Unit with each Unit consisting of one common share and one common share purchase warrant ("Warrant"), such Warrant having an exercise price of $0.22 and being valid for two (2) years from the date of conversion of the debenture into shares of Intertainment Media Inc., or (b) common shares of Itibiti Systems ("Itibiti Shares") upon the occurrence of a Liquidity Event (as defined below) whereby each $0.70 of principal amount outstanding under the Debentures can be converted into one Itibiti Share. The Debentures issued are subject to a hold period which expires February 23, 2010.

A Liquidity Event is the occurrence of an event whereby Itibiti Systems is listed for trading on a public stock exchange or whereby substantially all of the assets or securities of Itibiti Systems are sold or amalgamated.

Itibiti Systems Inc. - www.itibiti.com Itibiti Systems' platform, itiBiti, is a revolutionary, instant revenue driven, Rich Internet Application (RIA) providing entertainment, communications and social networking initiatives displayed directly onto a user's computer desktop - providing major global brands with the unprecedented ability to power their marketing efforts within a unique, private label loyalty and revenue platform. itiBiti offers users a rich suite of services in combination with brand client initiatives, and the Microsoft Windows Live platform. Users have the ability to access itiBiti using their Windows Live ID, giving them direct access to a number of Microsoft services. Itibiti Systems Inc. has an agreement with Highway Entertainment to represent itiBiti, to all of Omnicom Media Group clients worldwide. Omnicom Media Group ("OMG") is the media services division of Omnicom Group Inc. (NYSE:OMC), the leading global advertising, marketing and corporate communications company, providing services to over 5,000 clients in more than 100 countries. Itibiti Mobile will provide users of major private label branded itiBiti platforms with the ability to continue their brand engagement experience with their mobile smartphone.

Intertainment Media Inc. - www.intertainmentmedia.com Intertainment Media Inc. is a Rich Media Applications leader, focused on delivering leading edge technology and marketing solutions enabling clients to power enhanced branding, loyalty initiatives and consumer engagement. Selected as a Microsoft Global Agency Initiative partner, Intertainment has joined an elite group of interactive agencies worldwide that Microsoft recommends to its Partners and Customers. Additionally, Intertainment owns, operates and invests in high value content, traffic management, advertising and social networking solutions including, Eye Rock Digital, No Good TV, View2gether Inc., Itibiti Systems Inc., and Magnum Fine Commercial Printing Limited. With offices in New York, Los Angeles and Toronto, Intertainment Media Inc., is Headquartered in Richmond Hill, Ontario, Canada. Intertainment Media Inc. is listed on the Toronto Venture Exchange with the symbol "INT".

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. Intertainment Media Inc. does not assume any obligation to update any forward looking information contained in this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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