SOURCE: Virtual Media Holdings Inc.

June 17, 2008 09:15 ET

Virtual Media Holdings Inc. Provides Biomass Power Update

VANCOUVER, BC--(Marketwire - June 17, 2008) - Virtual Media Holdings Inc. (PINKSHEETS: VMHIF) -- Jim Carroll, Chief Executive Officer, states that the new direction the company is taking will lead to profitability and provide long term income streams.

Once the acquisition of Biomass Secure Power Inc. is completed the company will continue with their application to build a 10 megawatt biomass power plant, from which the power will be sold to BC Hydro on a twenty year contract. Annual gross income is projected to exceed Eleven Million Dollars from sale of electrical power and the sale of excess hot water heat to local industry. Projected costs for fuel (biomass), plant operation, and other expenses are under three million dollars, leaving eight million dollars for debt servicing. The company is exploring several options to pay for the eighteen million dollar plant construction and will advise shareholders of details once a decision is finalized.

Honourable Barry Penner, Minister of Environment for the Province of British Columbia, has issued a statement supporting the use of timber killed by the pine beetle as a biomass fuel to produce electricity. He stated that there is up to 4.4 million cubic meters available per year for the next twenty years for this purpose. We have had discussions with timber licensees and confirmed that a long term contract will be provided to meet our biomass fuel requirements.

Canaccord Adams has provided us with a copy of their 156 page report showing that Canadian power industry requires an unprecedented 40,000 MW of new power generation capacity that could cost up to $150 billion by 2015, and state that investor-owned entities will likely build over 85% of the new generation required. Our projections show that the opportunity to build 2,000 biomass power plants 10 to 20 megawatt size exists in North America, our goal is to become a major player in there development.

This press release contains forward-looking statements involving risks and uncertainties including statements regarding the Company's future performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors which include, but are not limited to, our ability to leverage our technology, manage our growth, protect our intellectual property rights, attract new customers and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.

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