SOURCE: Virtual Media Holdings Inc.

July 06, 2006 09:15 ET

CD Warehouse Stores to Offer Their Entire Inventory of Music and Video Game Products on the Soon-to-Be-Launched VMHSales.com

VANCOUVER, BC -- (MARKET WIRE) -- July 6, 2006 -- Steve Gaspar, President of Virtual Media Holdings Inc. (OTCBB: VMHIF), is pleased to announce that our soon-to-be-launched website VMHSales.com, an innovative buyer/seller marketplace portal offering millions of new and used items for sale, will offer CD Warehouse Stores' shelved inventory of new and used Music Media as well as Video Game items for sale. CD Warehouse Stores are a worldwide Retail chain operating 280 corporate-owned and independent stores utilizing the CD Warehouse, CD Exchange, Disc Go Round and Music Trader brand names.

According to Steve Gaspar, President of Virtual Media Holdings Inc., "Our relationship with CD Warehouse Stores continues to strengthen. We intend to bring CD Warehouse Stores increased internet exposure by effectively marketing their Music Media and Video Game products to our large and diverse internet customer base. We are proud to say we are effectively marrying the Brick and Mortar retail industry to the internet. It's great to see shelved items sitting in numerous CD Warehouse Stores around the country ending up in the homes of VMHSales.com customers possibly thousands of miles away."

About CD Warehouse:

CD Warehouse Inc. is a global retail outlet for new and used DVDs. Through Franchisees and corporate-owned stores, CD Warehouse Inc. provides International and Domestic commercial DVD distribution services. For franchise info on CD Warehouse please contact Matt Allen at 1-800-641-9394 ext. 3.

For further information about the company go to: http://cdwarehouse.com

About Virtual Media Holdings Inc.:

Virtual Media Holdings Inc. (OTCBB: VMHIF) is committed to changing the way merchants and consumers interact on the Internet. VMH has created a variety of Internet-based buyer/seller communities known as virtual marketplaces where VMH supplies a robust marketplace for traditional brick and mortar as well as other e-commerce companies to sell their media products. By partnering with VMH and using its unique e-commerce platform these companies achieve both increased web presence and increased revenues. VMH websites include www.DVDmarketplace.com and the soon-to-be-unveiled www.VMHSales.com.

Safe Harbor Act Notice:

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited to those set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

For further information about the company go to: www.virtualmediaholdings.com

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