Intertainment Media Inc.

Intertainment Media Inc.

January 14, 2011 17:00 ET

Intertainment Announces First Closing of Private Placement

TORONTO, CANADA--(Marketwire - Jan. 14, 2011) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT) is pleased to announce that it has completed the first tranche of its previously announced non-brokered private placement of units ("Units"). Intertainment issued 12,470,675 Units at a price of $0.10 per Unit for gross proceeds of $1,247,067.50 in this first closing. Each Unit issued pursuant to the private placement is comprised of one common share of Intertainment ("Common Share") and one common share purchase warrant ("Warrant"). Each Warrant entitles the holder to acquire one Common Share until January 12, 2013. All securities issued in connection with this first tranche of the private placement will be subject to a four-month hold period, which expires on May 13, 2011. It is anticipated that the net proceeds of the private placement will be used to accelerate Ortsbo, itiBiti and Ad Taffy as well as for corporate purposes.

Directors and officers of the Corporation acquired 2,150,000 Units pursuant to this first tranche of the private placement. The Corporation has determined that exemptions are available for the various requirements of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 for the issuance of the Units to insiders of the Corporation.

Finders acting in connection with this first tranche of the private placement received a finder's fee in the total aggregate amount of $49,259.20 and 492,592 finder's warrants, with each finder's warrant entitling the holder to acquire one Common Shares at a price of $0.13 per Common Share until January 12, 2013.

Completion of the private placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including TSX Venture Exchange acceptance. Following the completion of this first tranche of the private placement, the Corporation has 140,183,671 Common Shares issued and outstanding.

About Intertainment -

Connecting people with brands, 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.

Intertainment owns a number of key properties including Ortsbo, Ad Taffy, itiBiti and Magnum Fine Commercial Printing Limited.

Headquartered in Richmond Hill, ON, with offices in New York, Los Angeles and San Mateo, CA, Intertainment Media Inc. is listed on the TSX Venture Exchange under the symbol "INT".

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The offered securities mentioned in this press release will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

This new release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

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.

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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