Intertainment Media Inc.
TSX VENTURE : INT

Intertainment Media Inc.

June 23, 2009 09:10 ET

Intertainment's Itibiti Systems Completes Acquisition

Next Generation Social Media Application, itiBiti, accelerates rollout plan

TORONTO, ONTARIO--(Marketwire - June 23, 2009) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT) announces today that it has closed its previously announced $2 Million asset purchase acquisition (the "Transaction") providing the Company's wholly owned subsidiary, Itibiti Systems Inc. ("Itibiti Systems"), with full rights to all legacy technology and intellectual property assets (the "Technology") as disclosed in press releases dated March 3, 2009 and May 5, 2009. The Company has provided $1.2 Million at closing with the balance to be paid over the next ten months. The Transaction provides Itibiti Systems with full interest in all facets of itiBiti, as it continues to execute its business strategies and accelerate its rollout plan.

Called "the next generation of integrated social media applications" by Microsoft Corp., itiBiti provides major brand partners with a full feature, revenue generating, turn-key platform integrating consumers and fans, or "clusters", into a robust and engaging desktop based private label social media enterprise. Over the past few months, ItiBiti has showcased major brand programs as a Microsoft Global Agency Partner at a number of high profile industry events. itiBiti is continuing to negotiate and execute agreements with major business brands and technology partners and will provide updates accordingly.

"Intertainment has been diligently working on the development and deployment of the itiBiti platform for the past 2 years, creating "cluster" based social media programs for its major brand partners. In the marketplace, itiBiti has created significant excitement within the global technology and marketing communities. With the completion of this Transaction, we will continue to execute our "live" business strategy, working to create long-term revenues and value for all our stakeholders," stated Mr. David Lucatch, president of Itibiti Systems and CEO of Intertainment.

Pursuant to the Transaction, Itibiti Systems paid the vendor at closing $1.2 Million, consisting of $400,000 in cash and 8,000,000 units ("Units") of the Company issued at a deemed price of $0.10 per Unit. Each Unit consists of one common share ("Share") and one Share purchase warrant ("Warrant") with an exercise price of $0.10 per Warrant and an expiry date of two years from the date of issuance. The Shares and Warrants are to be released over a period of 16 months pursuant to a voluntary escrow agreement with the vendor. Itibiti Systems has also provided the management team of the Technology Transaction with a minimum one-year consulting contract to provide ongoing development and integration services.

Under the terms of the agreement governing the Transaction, Itibiti Systems will pay the vendor an additional $800,000 in cash over the next 10 months (the "Post-Closing Payments"). Following completion of the Post Closing Payments, Itibiti Systems will own the full legal title to the Technology. The vendor shall receive revenue sharing payments from Itibiti Systems in the amount of 25.88% of all Itibiti Systems revenue until completion of the Post-Closing Payments, and for each of the 5 years following completion of the Post-Closing Payments, the seller shall receive revenue sharing payments in the amount 5.75%, 2.88%, 2.88%, 2.88% and 1.44% respectively, of all Itibiti Systems revenue.

Pursuant to the press release of May 5, 2009, the Company would also like to announce that Mr. Michael McLaughlin is joining the Board of Directors of Intertainment. Mr. McLaughlin is an advertising and broadcast industry veteran and has previously worked for Omnicom Media Group, where he served for eight years as an Executive Vice President within the Entertainment Group responsible for sales and marketing to the Canadian broadcasting community. Prior to Omnicom, Mr. McLaughlin spent 15 years with CanWest Global in numerous positions including Production, Programming and Sales.

About Itibiti Systems Inc.

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 social media and 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 is currently in the planning stage for a mobile version of its product offerings.

About Intertainment

Intertainment Media Inc. (www.intertainmentmedia.com) 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 (www.eyerockdigital.com), No Good TV (www.ngtv.com), View2gether Inc. (www.view2gether.com), Itibiti Systems Inc. (www.itibitisystems.com) and Magnum Fine Commercial Printing Limited (www.magnumprinting.com).

Headquartered in Richmond Hill, Ontario, Canada, Intertainment Media Inc. is listed on the Toronto Venture Exchange under the symbol "INT".

Certain information set forth in this press release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the impact of general economic conditions, industry conditions, volatility of oil and gas prices, currency fluctuation, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance or achievement could differ from those expressed in, or implied by, these forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits will be derived there from. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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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