Intertainment Media Inc.
TSX VENTURE : INT

Intertainment Media Inc.

July 13, 2009 11:08 ET

Intertainment's Itibiti Systems Closes Financing

TORONTO, ONTARIO--(Marketwire - July 13, 2009) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT) announces that its wholly owned subsidiary, Itibiti Systems Inc. ("Itibiti Systems") has closed on $1,415,430.50 cash for its previously disclosed offering of convertible debentures as detailed in the press releases dated June 4, 2009, May 5, 2009 and March 4, 2009 (the "Offering"). Insiders are providing $650,000 of new investment into the Offering, with Mr. David Lucatch, CEO of Intertainment Media Inc. and President of Itibiti Systems Inc. providing $550,000. The funds are being used to continue to execute Itibiti Systems business plan as detailed in the news releases over the past several months and for working capital requirements. Given the recent increase in valuation of Intertainment, the Company has chosen to minimize dilution and will review any future financing opportunities based on current market conditions.

Itibiti Systems has received a $2.1 Million CDN offer from a Toronto based Private Equity firm. The $2.1 Million offer provides for the conversion of a previously announced term loan of $1 Million into common stock of Itibiti Systems at $0.70 per share and the infusion of additional $1.1 Million of working capital, subject to the approval of the Board of Directors and the TSX Venture Exchange.

The Company also announces that the offering detailed in the press release dated May 21, 2009, has expired and the Company did not close on any subscriptions pursuant to such offering. Intertainment continues to negotiate an equity offering from an International Mutual Fund as detailed in the May 21, 2009 release, based on an increase in price that reflects current market conditions and subject to the approval of the Board of Directors and the TSX Venture Exchange.

Dundee Securities of Toronto has exercised 2,575,000 common share purchase warrants of Intertainment Media Inc. at $0.18 for gross proceeds of $463,500 pursuant to a previously closed financing. Proceeds were used for the closing of the previously announced technology acquisition and ongoing working capital requirements.

The convertible debentures ("Debentures") of Itibiti Systems consist of convertible debentures ("Debentures") at a subscription price of $50,000 CDN per Debenture which, unless otherwise authorized, will be payable at 15% interest per year, paid semi-annually. Each Debenture will be convertible into the Debenture holder's choice of (a) units of Intertainment ("Units") at a conversion price of $0.11 per Unit with each Unit consisting of one common share and one common share purchase warrant ("Warrant"), such Warrant having an exercise price of $0.16 and being valid for two (2) years from the date of conversion of the debenture into shares of Intertainment Media Inc., or (b) common shares of Itibiti Systems ("Itibiti Shares") upon the occurrence of a Liquidity Event (as defined below) whereby each $0.70 of principal amount outstanding under the Debentures can be converted into one Itibiti Share.

A Liquidity Event is the occurrence of an event whereby Itibiti Systems is listed for trading on a public stock exchange or whereby substantially all of the assets or securities of Itibiti are sold or amalgamated.

Further to disclosure requirements of applicable securities laws and as disclosed above, the Company reports that David Lucatch, President, CEO and a director of the Company, purchased $550,000 worth of convertible debentures ("Debentures") pursuant to, and upon the terms of, the Offering. Following completion of the Offering, David Lucatch, along with his spouse, now owns or controls 13,378,753 common shares of the Company ("Shares"), or approximately 15.1% of the total issued and outstanding Shares of the Company and options, warrants or convertible securities to acquire up to 12,750,000 Shares ("Convertible Securities"). Assuming exercise of such Convertible Securities, David Lucatch, along with his spouse, would own or control 26,128,753 Shares or approximately 25.8% of the total issued and outstanding Shares of Intertainment. David Lucatch purchased the Debentures for investment purposes. David Lucatch may increase or decrease his investment in the Company depending on market conditions or any other relevant factors.

About Itibiti Systems Inc.

Itibiti Systems' platform, itiBiti, is a revolutionary, instant revenue driven, Rich Internet Application (RIA) providing entertainment, communications and social networking initiatives displayed directly onto a user's computer desktop - providing major global brands with the unprecedented ability to power their marketing efforts within a unique, private label loyalty and revenue platform. itiBiti offers users a rich suite of services in combination with brand client initiatives, and the Microsoft Windows Live platform. Users have the ability to access itiBiti using their Windows Live ID, giving them direct access to a number of Microsoft services. Itibiti Systems is currently in the planning stage for a mobile version of its product offerings.

About Intertainment

Intertainment Media Inc. (www.intertainmentmedia.com) 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.

Additionally, Intertainment owns, operates and invests in high value content, traffic management, advertising and social networking solutions including, Eye Rock Digital (www.eyerockdigital.com), No Good TV (www.ngtv.com), View2gether Inc. (www.view2gether.com), Itibiti Systems Inc. (www.itibitisystems.com) and Magnum Fine Commercial Printing Limited (www.magnumprinting.com). Headquartered in Richmond Hill, Ontario, Canada Intertainment Media Inc. is listed on the Toronto Venture Exchange (symbol: INT).

Headquartered in Richmond Hill, Ontario, Canada Intertainment Media Inc. is listed on the Toronto Venture Exchange (symbol: INT).

Certain information set forth in this press release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the impact of general economic conditions, industry conditions, volatility of oil and gas prices, currency fluctuation, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance or achievement could differ from those expressed in, or implied by, these forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits will be derived there from. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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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