Intertainment Media Inc. Announces Subsidiary Funding

Voice Powered Social Network to receive up to $3 Million in first round

Intertainment Media Inc. ("Intertainment" or the "Company")(TSX VENTURE: INT) announced today that subject to TSX Venture Exchange approval, it will seek to complete a brokered private placement of convertible debentures of up to $3 Million CDN as a first round financing into its subsidiary, Itibiti Systems Inc. The Company already has strong interest in the financing from investors and debt holders. This financing follows the completion of Intertainment's first tranche of $525,000 CDN that included strategic equity financing in Intertainment on December 2, 2008 by Proximity Networks Inc.

The financing will be part of the Company's strategic objectives to grow Itibiti Systems Inc. as a majority owned, but independent division of the Company, allowing it to potentially keep pace with other online industry valuations. The valuation for companies in the online social networking space has significantly outpaced the value of Intertainment's total aggregate public value, and the Company and management are seeking to provide the utmost long-term value to its stakeholders.

"Itibiti Systems has been well received in its beta testing from major global brands, international advertising agencies and consumer groups. The company has over a dozen agreements in place to launch its program. By running Itibiti Systems as a separate entity, we believe that we are able to provide our shareholders and other stakeholders with a potentially larger value proposition in the long run," said Mr. David Lucatch, CEO of Intertainment Media Inc.

The Offering will 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 the Company ("Units") at a conversion price of $0.07 per Unit with each Unit consisting of one common share and one common share purchase warrant ("Warrant"), such Warrant having an exercise price of $0.12 and is valid for two (2) years from the date of conversion of the debenture into Units of Intertainment Media Inc., or (b) equity of Itibiti Systems Inc. in the form of common shares (the "Equity") for a period of two (2) years from the date of closing of the offering of Debentures, with the conversion price for the Equity based on a fixed pre-Offering valuation of Itibiti Systems Inc. being set at $10,000,000. The percentage of convertible ownership into Itibiti Systems Inc. under option (b) above is non-dilutive throughout the term of the debenture.

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.

The capital raised will be used to further the completion of Itibiti System's voice powered social networking platform, for strategic growth opportunities and for general corporate purposes. The Company may choose to issue fewer units than the maximum.

The Company would also like to announce the resignation of Mr. Greg Cumiskey from the Board of Directors due to personal business reasons. Mr. Cumiskey has been a member of the Board of Directors since May 2006. The Company wishes Mr. Cumiskey success in his future endeavors.

About Intertainment's Itibiti Systems

Intertainment's Itibiti Systems platform is a proprietary, social networking, multimedia and communications environment that can be installed directly on a user's computer desktop. The Itibiti platforms provides clients with custom branding, loyalty and revenue opportunities allowing them to extend their "Brand Experience" to the user's desktop. Key features of the Itibiti include IP Telephony, video/multimedia on demand, instant messaging, SMS, integrated in a feature rich interface that includes a mini web browser, desktop telephone and chat system which can be utilized to create active links to the affinity partners web pages, providing information and outside services and a complete advertising and marketing platform for revenue generation. For a full demonstration of the Itibiti platform, please visit www.intertainmentmedia.com/itibiti/presentation.html

About Intertainment

Intertainment Media Inc. (www.intertainmentmedia.com) is a conventional and new media company with an experienced and innovative team of professionals focused on delivering leading edge technology and marketing solutions.

Intertainment develops and invests in strategic programs that enable clients to increase their branding and loyalty relationships with their consumers while focusing on increased revenue generation.

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), and Itibiti Systems (www.intertainmentmedia.com/itibiti/presentation.html).

Intertainment Media Inc. is headquartered in Richmond Hill, Ontario, Canada. The company 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.