Intertainment Media Inc.
TSX VENTURE : INT

Intertainment Media Inc.

April 16, 2009 14:56 ET

Intertainment's Itibiti Systems Financing Accelerates Launch

TORONTO, ONTARIO--(Marketwire - April 16, 2009) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT) announces that it's wholly owned subsidiary Itibiti Systems Inc. ("Itibiti Systems") has agreed to enter into, subject to necessary approvals, an agreement for up to $1 Million Canadian in funding to accelerate the live launch of its Itibiti System's voice powered social networking platform ("itiBiti") for its showcase brands.

This non-equity agreement, from a private Toronto based group, is to provide immediate access to working capital as the company completes the $3 Million debenture financing ("Offering") announced on March 3rd, 2009. The funding group has the option to convert into the Offering and the Company may choose to issue fewer convertible debenture units than the maximum proposed.

This announcement provides a launch update to previous strategic releases with our technology and business partners. Over the past month, itiBiti has showcased at South by Southwest, MIX09 and Web 2.0, and the product has received significant interest from major technology and consumer product brands. Itibiti Systems' clients, including a major US broadcaster, will begin their own publicity programs including a rollout schedule within the next 30 days.

"The Company is extremely pleased to begin the roll out phase of its highly-demanded Voice Powered Social Networking platform - itiBiti. Our clients and partners are very excited to be part of this revolutionary new high margin, instant revenue-generating program. We are continuing to see progress in our funding efforts as daily news reports help investors recognize the significant impact that Social Media is making to the business world," said Mr. David Lucatch, CEO of Intertainment Media Inc.

The $3 Million Offering will consist of Itibiti Systems 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 either (a) units of Intertainment ("Units") at a conversion price of $0.11 per Unit with each Unit consisting of one common share of Intertainment Media Inc. (TSXV: INT) and one INT 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 Systems are sold or amalgamated.

The Offering will be led by Toronto based D&D Securities Company. The Company will pay eligible parties 8% commission in cash and provide an option to purchase up to 8% of the Debentures sold at the subscription price of the Offering for a period of 18 months from the date of completion of the Offering.

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. 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.

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), Trooker Inc. (www.trooker.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).

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.

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