Intertainment Media Inc.
TSX VENTURE : INT

Intertainment Media Inc.

January 30, 2008 09:01 ET

Intertainment to Purchase Itibiti Technology

Platform combines advertising, video and voice communications on computer desktop

TORONTO, ONTARIO--(Marketwire - Jan. 30, 2008) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT) is pleased to announce that it has entered into a term sheet to purchase all the outstanding assets, technology rights and intellectual property of its partner, Toronto based, VoIP and Telecommunications specialist, Itibiti Inc. In addition, management of Itibiti Inc. has agreed to join Intertainment upon completion of the transaction. Intertainment has until June 15, 2008 in which to complete the purchase.

Itibiti and Intertainment have developed a robust, revenue driven, technology and marketing desktop application that allows consumers to communicate directly via computer to computer, text chat and voice communication to cellular and land based lines globally. The key to the program is its ability to be customer branded and take on the look and feel of a mini web site right on the computer desktop. The application plays video content, advertising and pushes promotional offers in exchange for FREE communications including Local and Long distance calling services. Companies can create unique promotional tools that reward their customers using this platform. Consumers can also share the application with each other, promoting viral marketing. The commercial release of this technology is scheduled the first quarter of 2008 and will be supported by an intensive market awareness and promotional campaign.

"Intertainment is very excited to have the opportunity to add Itibiti's proprietary programs and management to its team. We have spent a considerable amount of resources to bring this product to market, and we believe that with the opportunity to own 100% of the platform, we can increase value to our shareholders," said Mr. David Lucatch, CEO of Intertainment Media Inc.

The entire communications suite is FREE to consumers, using advertising and sponsorship as the primary revenue drivers. Advertisers and sponsors can elect to provide banner and video ads, voice mail ads and allow users to increase free calling minutes and other services by completing various actions including making a purchase, completing a survey, or referring the program to other friends. Intertainment is in discussions with several advertising agencies and online advertising firms to provide advertising for this program.

The Purchase of Itibiti Technology is subject to the approval of the final agreement by the Board of Directors of both companies, and the TSX Venture Exchange. Intertainment will have the exclusive right to purchase all outstanding assets, technology rights and intellectual property of Itibiti Inc. for a sum equal to $2 Million CDN. The transaction will be a combination of stock and cash. The Companies have agreed that, upon exercising the option to purchase Itibiti, the number of common shares to be issued will be based on the previous day's stock closing price.

As part of its purchase, any monies invested into Itibiti, in advance of the purchase, will be converted into equity and deducted from the $2 Million CDN purchase price. The purchase will increase Intertainment's position from 40% of the group's net profits to 100% of the net profit.

About Ititibi Inc.

Itibiti is the developer of a revolutionary new video ad based online phone technology that allows users to send and receive free phone calls peer to peer, through land lines and over the cellular network right from their laptop or desktop computer. In return for the free service, banner and video content is served through the phone application to the user.

The phone product is a new generation of "widget" which is easily and instantly accessible through the user's computer desktop. The user is not required to be on the Internet to use the online phone. Additionally, the user can be on the online phone and the Internet at the same time, allowing users to send and receive email, chat and browse, all while on the desktop phone.

In conjunction with its partnership with Intertainment, the key value proposition of the platform is its ability to push video and advertising to consumers through the desktop application. Advertising and marketing companies can easily reach consumers through its partnership with Intertainment's marketing and technology systems.

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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