SOURCE: Chalk Media Corp.

March 15, 2007 15:03 ET

Chalk Media Corp. Letter From the Chairman

VANCOUVER, BC -- (MARKET WIRE) -- March 15, 2007 -- Chalk Media Corp. (TSX-V: CKM), a leading provider of interactive learning solutions for its clients' consumers, business partners & employees, today issued the following letter from its Chairman Grant Sutherland:

Dear Shareholders:

Chalk today announced it has entered into an agreement with Sympatico / MSN.

As detailed in that announcement, Chalk will produce videos for the Internet that explain technology and consumer electronics products. Sympatico / MSN will show those videos on its Internet portal and guarantee a certain number of impressions. Revenue will be generated from sponsors of the videos; that revenue will be shared between Chalk and Sympatico / MSN.

Video on the Internet is growing at an extremely rapid rate as a result of the proliferation of high speed Internet access.

According to Advertising Age, "two thirds of home-Internet users now use broadband." e-Marketer says that "spending by marketers, in love with... video online, will be responsible for an 89% higher growth rate in 2007 over 2006." imediaconnection states, "Online video advertising is fast becoming an essential tool for today's savvy marketer."

It is this environment that has lead to Chalk's new deal with Sympatico / MSN.

This represents a new and significant revenue opportunity for Chalk. Chalk now has two core revenue streams, its traditional online training business and revenue from the Sympatico / MSN alliance.

The agreement with Sympatico / MSN covers Canada. It is our intention to seek to enter into similar arrangements in the US and the UK, though I must caution you that we have had only preliminary discussions in this regard.

We believe that our revenues from this new Internet video business will exceed revenues from our online training business. Further, the margins in this new Internet video business are superior to those of the custom content side of our traditional training business.

This new agreement with Sympatico / MSN is an excellent development for Chalk and its shareholders and will greatly assist Chalk in moving to profitability.

I want to tell shareholders about another direction we are taking that we believe will be very beneficial to Chalk and its shareholders. The new breed of cell phones and personal digital assistants (PDAs) is video enabled. This means that you can now see video on your cell phone as well as your computer. We have talked with major corporations and government agencies about delivering online training with a large video component over cell phones and PDAs. This concept has been enthusiastically received. As a result we are in the process of modifying our software to allow us to deliver training over these hand held devices. We expect this will be a third significant revenue opportunity for Chalk when that software transition is complete. Chalk expects to have a beta version available in approximately two months. I will keep you advised on developments in this regard.

I want to thank all Chalk shareholders for their patience and support. Our employees, contractors, officers and directors are working hard to make Chalk a success.

Yours truly,

Grant Sutherland
Chairman
Chalk Media Corp.
About Chalk Media Corp.

Chalk (TSX-V: CKM) is a leading provider of interactive learning solutions and tools that help organizations communicate more effectively with their employees, business partners and consumers. The company's core focus is customized, results-driven eLearning solutions.

By combining in-house expertise in instructional design, content strategy, development, quality assurance, Flash animation and video production, Chalk produces customized rich media content that focuses on the user experience. Chalk uses its proprietary software platform, chalkboard™ LCMS, to measure the effectiveness of their learning solutions and track ROI for their clients.

With a US office in metropolitan Washington, DC, and Canadian offices in Toronto, Ontario, Vancouver, British Columbia and Fredericton, New Brunswick, Chalk works with global blue-chip organizations such as 1-800-GOT-JUNK?, AstraZeneca, Best Buy, Business Objects, Fujifilm, HSBC, Intrawest, Microsoft, RBC Financial, RIM, Samsung, Scotiabank, Sony, TELUS, Terasen Gas and Verizon. For more information, please visit www.chalk.com.

The TSX Venture Exchange has not reviewed the contents of this release and is not responsible for its accuracy.

To view additional Chalk press releases, please visit: www.chalk.com/About/NewsRelease.asp

Contact Information

  • For more information, please contact:
    Chalk Media Corp.
    Kris Sutherland
    Executive Vice President
    Tel: 604.453.4424
    Email Contact