Intertainment Media Inc.
TSX VENTURE : INT

Intertainment Media Inc.

October 29, 2007 20:00 ET

Intertainment's Online and Mobile Strategies Key to Company's Future

Year end results reflect launch of new initiatives and revenue programs

TORONTO, ONTARIO--(Marketwire - Oct. 29, 2007) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT) is pleased to announce that it has made significant progress in executing its business plan for fiscal 2007 by launching a number of new online and mobile revenue initiatives and increasing the Company revenues and assets. In fiscal 2007, the Company built and launched its wholly owned platform Eye Rock Digital.com, and made significant investments in Beverly Hills, CA based NGTV.com and Los Angeles and Toronto based Trooker.com. The Company has also begun a relationship with Toronto based Itibiti.com, to develop a new ad based voice over IP (VoIP) platform.

Revenue for the year ended June 30, 2007 was $3,359,172, a significant increase from the $2,077,944 reported in 2006, largely due to revenues generated in the 2nd quarter from development services associated with the production of an online gambling customer acquisition and reward system for a single customer. Net losses increased from $1,740,587 in 2006 to $3,551,794 in 2007. The increase in net losses were due significantly to the change in the Company's direction from providing primarily traditional marketing services to third party clients to developing wholly owned and partnered programs in the rapidly growing online and mobile marketplace, and also due to a large bad debt expense incurred due to major changes in the US and globally with respect to online gambling as explained in further detail below. The Company also incurred substantive costs related to the development of its new programs, as well as expenses related to financing, and loss of exchange on US investments.

The Company's assets grew in 2007 to $4,413,002 from $1,806,690 in 2006, an increase of 145%. The increase was primarily due to investments in NGTV.com, Trooker.com and a relationship with Itibiti.com. These assets provide the Company with significant opportunities in the online and mobile markets for the creation of advertising and related revenues.

By early fiscal 2007, the Company was engaged to develop a new online gaming marketing and reward program. The product was delivered to the client by mid Q2. The subsequent change in US online gaming law in late 2006, and industry factors, led to significant changes in global revenues in this market segment. The Company reported in its Q3 results factors related to this issue. The Company has an agreement with the client's marketing company to launch an ad based content program for the recovery of the Company's receivables. Given the age of the receivables, the Company has elected to write down a significant portion. The Company is working to accelerate this new program to recover its total billings.

The Company ceased to provide development services in this area as of end of Q2, and focuses on its own programs related to content distribution, developing online and mobile traffic, and the generation of advertising and marketing revenues.

"The Company faced strong challenges in fiscal 2007. Major changes in the US and globally with respect to online gambling, capital requirements for new initiatives, and a corporate decision to move from primarily traditional marketing to Web 2.0 programs required that additional time, energy and resources be expended to execute the corporate business plan. The resulting efforts by the employees, management and the Board of Directors, have created a dynamic industry leader, launching new, highly accepted initiatives like Eye Rock Digital.com and the establishment of key programs globally in the online and mobile content, advertising and technology arenas," said David Lucatch, CEO of Intertainment Media Inc.

Corporate Highlights For Fiscal 2007

- Company moves from traditional marketing to online and mobile marketing platforms

- Name change to Intertainment Media Inc. to better reflect the evolution of the Company

- Increase in Revenues in 2007

- Increase in Assets by 145% in 2007

- Successful completion of Convertible Debentures and Equity Offerings

- Establishment of key, long-term technology relationships with Cambridge, MA Brightcove.com, New York based Doubleclick.com, and major advertising networks

- Build and successful launch of Eye Rock Digital.com - Platform reaches 100 million video views

- Partnership and investment in NGTV.com - Online Entertainment & YouTube phenomenon

- Investment in Trooker.com - Patent Pending video search engine and social networking platform

- Relationship with Itibiti.com - Revolutionary Ad Based VOIP platform

The Board of Directors have approved the issuance to the Chief Financial Officer, Debra Farquharson, a grant of 100,000 common stock options at a strike price of $0.17 CDN, based on the previous day's closing price, in accordance with the CFO's original contracted, signed on April 12, 2007.

Company financial information is available from Sedar.com (www.sedar.com)

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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