Intertainment Media Inc.
TSX VENTURE : INT

Intertainment Media Inc.

December 06, 2007 13:00 ET

Intertainment Launches Sponsored Ad, Video and Voip Platform

Turns computer desktop into entertainment and communication platform Company also closes first round of announced financing

TORONTO, ONTARIO--(Marketwire - Dec. 6, 2007) - Intertainment Media Inc. ("Intertainment" or the "Company")(TSX VENTURE:INT) has launched a new viral marketing system that provides a private label, desktop video entertainment, information and communications suite featuring chat and voice communications in conjunction with ad services. The platform is aimed at companies that have large networks of customers and / or online viewers. The company is also pleased to announce that it has closed the first round of its announced financing.

Intertainment has received significant interest from a number of leading brands for the program, and has already reached tentative agreements with 15 customers from Canada, the US and Asia. The platform is designed to showcase a client's proprietary business offerings, and provides the end user member benefits including exclusive content, promotions, free local, long distance and computer to computer communications. Consumers can invite friends to use the program, allowing for significant growth opportunities. Each client is expected to be able to support up to 2 million users on its program.

Launching late January 2008, Intertainment will manage the marketing services and integrated video and ad serving technologies and receive up to 40% of the gross revenue from each client's program. The balance will be shared with Intertainment's technology partners, including itibiti Inc. and the client. Clients will be able to provide their own video content and / or work with Intertainment to take advantage of the significant volume of content already available through Eye Rock Digital.com

The aim of the program is to leverage a client's content and marketing offers to improve customer acquisition, loyalty and win-back programs. The program can also produce significant revenues for a client's core products and services as well as generating related advertising revenues.

"Intertainment is capitalizing on its video entertainment, marketing and advertising platforms by adding communications capabilities and private labeling. This service will allow clients to provide significant improvements in customer relations, as the desktop appliance offers a unique and exciting landscape in which to reach and interact with consumers," said Mr. David Lucatch, CEO of Intertainment Media Inc.

The Company is also pleased to report that it has closed the first portion of the financing announced on October 15, 2007 in the amount of Three Hundred and Forty Five Thousand Four Hundred and Fifty Dollars ($345,450 CDN).

The Company, subject to TSX Venture Exchange approval, is working to complete a brokered private placement to accredited investors, whereby investors will have the ability to purchase up to 4,000 convertible debentures units priced at $1,000 CDN per unit. The offering is being led by Paradigm Capital Inc. of Toronto. The company will pay 8% commission and 8% broker warrants to eligible parties.

The convertible debentures matures on December 31, 2009, carry an eight percent (8%) interest rate, and have the ability to convert to common shares of the Company at $0.20 CDN each. In addition each convertible debenture unit will have attached 5,000 common share purchase warrants, valid for 24 months from the time of closing, with an exercise price of $0.30 CDN. The common share purchase warrants will be issued immediately upon closing of the private placement, and will not require the investor to convert the principal of the convertible debenture to common shares. The debentures will be subordinate to the Company's current debentures.

The capital raised is being used for strategic growth opportunities, and for general corporate purposes. The Company may choose to issue fewer units than the maximum as it reviews its ongoing revenue bookings.

About Intertainment Media Inc.

The Company and its divisions, develop traditional and new media marketing programs for clients to build Brand, Loyalty and Revenues. The Company's primary services include online content distribution, traffic generation services and generation of revenue through integrated advertising programs.

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.

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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