Intertainment Media Inc.
TSX VENTURE : INT

Intertainment Media Inc.

July 16, 2007 08:54 ET

Intertainment Closes $2.3 Million USD NGTV Investment

Intertainment Extends Marketing Rights To Canada and Other Geographic Territories

TORONTO, ONTARIO--(Marketwire - July 16, 2007) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT) announced that the company has closed its $2.3 Million USD Convertible Debenture with Beverly Hills, California based entertainment company No Good TV (www.ngtv.com). The Company has also received a further opportunity in a letter dated July 5, 2007, that would allow it, under the same terms and conditions to invest a further $4 Million USD into NGTV.

As announced on December 20, 2006, Intertainment agreed to invest up to $2.3 USD Million as a strategic investment in NGTV and thereby amend the Marketing Agreement for Canada, the UK and Europe with certain renewal options and rights of first refusal covenants, for a total term of five (5) years. In addition to Canada, and rights to expand to the UK and Europe, the amendment to the Agreement provides Intertainment with the ability to extend its rights, on a first right of refusal basis, to include China, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand and Australia.

The Company has made the investment on the basis of receiving a one (1) year Junior Secured Debenture bearing 12% interest per annum, and a conversion provision in the event of an Initial Public Offering of NGTV ("IPO") at the sole discretion of the Company. Should an IPO take place, the Company will have the right to convert its investment, including accrued interest, at a 50% discount to the IPO price or $2.50 USD, whichever is lower. If a liquidity event or other than an IPO occurs or an equity financing that is not an IPO occurs with respect to NGTV while the NGTV debenture is outstanding, the NGTV Debenture may be converted, at the option of Intertainment, on the same terms and conditions of such liquidity event or equity financing.

In recent months, NGTV launched a partner channel on YouTube.com and has quickly become the 8th leading all-time partner channel. NGTV is the #1 partner channel on YouTube on a monthly and weekly basis according to total number of "views" of its programming content.

"With over 100 Million video views and growing, Intertainment and Eye Rock Digital are very excited to be solidifying our long term opportunities with NGTV. The Internet community has quickly embraced NGTV through YouTube.com, NGTV.com and EyeRockDigital.com, and we are providing Canadian advertisers the same marketing opportunities as their US counterparts in reaching the young, hip, affluent and technologically savvy Internet and wireless public with music, video and celebrity content that is fresh, timely and the way the artist intended it to be viewed." said Mr. David Lucatch, President and CEO, Intertainment Media Inc.

About No Good TV

NO GOOD TV is the world's largest producer of uncensored celebrity news and entertainment programming. The first and only network of its kind, NO GOOD TV provides fans with an all-encompassing entertainment destination and an unprecedented level of uncensored access to the biggest stars in the world, paparazzi-free. This unique combination makes it an ideal promotional and advertising platform for anyone looking to reach the elusive 18-34 demo. NO GOOD TV allows viewers to connect with their favorite celebrities on an intimate, personal level that has yet to be captured by any other network. The network covers all things entertainment and boasts a guest list of the hottest A-list stars. NO GOOD TV can be accessed on the web at www.NGTV.com.

About Eye Rock Digital

Intertainment's wholly owned subsidiary Eye Rock Digital Inc. (www.eyerockdigital.com) is a leading edge provider of video on demand, digital content, distribution, advertising and production. Eye Rock Digital aggregates and creates digital content aimed at the young, hip and technologically savvy young adult market. Eye Rock Digital develops programming for simultaneous delivery over broadband and wireless platforms.

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 DC Netcast Media Inc.

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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