Intertainment Media Inc.
OTC Bulletin Board : ITMTF

Intertainment Media Inc.

March 25, 2011 17:30 ET

Intertainment Media Interim Corporate Update

TORONTO, CANADA--(Marketwire - March 25, 2011) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT)(OTCBB:ITMTF)(FRANKFURT:I4T) announces that the Company continues to accelerate its performance from all divisions, making significant strides in executing its business plan and strategy objectives as insiders continue to increase their overall investment position.

During the current quarter, Fiscal Q3, which ends March 31, 2011, the Company has greatly improved its current financial position from its previously stated financial statements for Fiscal Q2 ended December 31, 2010. This activity has not been reflected in Q2 statements which were filed with in accordance with regulatory requirements.

Financial Update Highlights (all figures are in Canadian Dollars):

Since early January, the Company on a consolidated basis has received in excess of $10.99 Million in cash from $8.43 Million in private placement, warrant and common share option exercises and $2.56 Million in debt transactions.

Promissory Notes have been reduced by approximately $1.0 Million in the past 85 days.

Convertible Debentures have been reduced by approximately $4.2 Million in the past 85 days.

In March 2011, David Lucatch undertook to acquire up to 10 Million shares to increase his position in Intertainment. During the week of March 21st, 2011 Mr. Lucatch spent $1,190,000 acquiring common stock including 5 Million shares through a convertible debenture owed to Mr. Lucatch from the Company and a further purchase of 4 Million common shares. Mr. Lucatch has sold approximately 446,000 common shares of INT in the market as part of the support for the recent transactions. From time to time, Mr. Lucatch may choose to increase his investment position in Intertainment.

On November 28, 2010, David and Jana Lucatch, in order to provide immediate funding to support working capital needs of Intertainment and Ortsbo, agreed to transfer a total of 3 Million shares to an arm's length 3rd party, which resulted in proceeds of $398,000 CDN.

This transaction provided immediately required working capital for Intertainment and Ortsbo and occurred ahead of the escalated market attention and recent increase in share value. Final documentation was recently completed and reports have been filed with SEDI. Intertainment has repaid these funds to David and Jana Lucatch, and the monies have been reinvested into Intertainment.

The Board of Directors have granted, subject to regulatory approval 3.5 Million common share options of Intertainment Media to the Board of Directors, Senior Management and insiders at a price of $0.43 per common share. These common share options vest over five years in accordance with the Company's share option agreement.

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", in the US under the symbol "ITMTF" and on the Frankfurt Exchange under the symbol "I4T".

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. Intertainment Media Inc. does not assume any obligation to update any forward looking information contained in this news release.

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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