SOURCE: Virtual Media Holdings Inc.

June 13, 2006 09:30 ET

Newtown Video Inc. to Offer Entire Inventory of Music and Video Game Products on VMHsales.com; Additional Revenues Are Anticipated

VANCOUVER, BC -- (MARKET WIRE) -- June 13, 2006 -- Steve Gaspar, President of Virtual Media Holdings Inc. (OTCBB: VMHIF), is pleased to announce that our soon to be launched website VMHsales.com, an innovative buyer/seller marketplace portal offering millions of new and used items for sale, will soon be carrying new and used Video Game and Music media products supplied by Newtown Video Inc. This product offering will include used as well as new Video Game titles for popular Video game platforms such as Microsoft's Xbox 360, Sony's Play Station 2, and Nintendo's Game Cube. Newtown Video Inc. will also offer a large selection of new and used Compact Disc titles at wholesale price points.

According to Steve Gaspar, President of Virtual Media Holdings Inc., "As we expand our product offering to include some 7 million unique items for sale in our database, it is important we maintain our competitive edge by making sure we get the customer the best possible service at the best possible price point. The Newtown Video Inc. product line definitely fits the criteria. Adding Newtown Video's value oriented Video Game as well as Music Media products will definitely add to the overall competitiveness of VMHsales.com."

Phil Forman, President of Newtown Video Inc., states, "Newtown Video has been very successful selling our DVD product offerings on the DVDmarketplace.com. We intend to replicate this success selling our Video Game and Music product lines on VMHsales.com."

About Newtown Video Inc.:

Newtown Video Distributors has been one of the leading and most respected new and used film distributors in the industry for over 15 years. Located outside Philadelphia, http://newtownvideo.com has a library of over 50,000 movies for sale. Our inventory includes new, used, discontinued and hard-to-find and moratorium video movies and DVDs. Newtown Video also specializes in the sale of new and used Video Game and Music Media products.

About Virtual Media Holdings Inc.:

Virtual Media Holdings Inc. (OTCBB: VMHIF) is committed to changing the way merchants and consumers interact on the Internet. VMH has created a variety of Internet-based buyer/seller communities known as virtual marketplaces where VMH supplies a robust marketplace for traditional brick and mortar as well as other e-commerce companies to sell their media products. By partnering with VMH and using its unique e-commerce platform these companies achieve both increased web presence and increased revenues. VMH websites include www.DVDmarketplace.com and the soon to be unveiled http://VMHsales.com.

Safe Harbor Act Notice:

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited to those set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

For further information about the company go to: www.virtualmediaholdings.com

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