TORONTO, CANADA, June 2, 2008- Intertainment Media Inc. (“Intertainment” or the “Company”) (TSXV:INT) is pleased to announce that its graphic services division, Magnum, has signed multi year service and supply contracts with a major leading Canadian Stationer. Revenue from these contracts is expected to substantially increase its ongoing business with the client by an additional minimum of $600,000 per year, and based on the client’s historical activities, additional revenue may rise to $1.5 Million or more per year depending on the volume of trade activity. The contracts take effect immediately and new revenue is expected to begin within 30 days.
Based on Intertainment’s reported Year End Statements as at June 30, 2007, these contracts may effectively increase business of the Graphics Services Segmented Revenue by a minimum of 36% and up to an increase of 90% per year based on the client’s historical activities. It is expected that Gross Margins will also rise, as there is no substantive increase in fixed costs associated with these contracts. As part of the contracts, the client is transferring ownership of a number of production assets to Magnum at no material cost. The equipment will allow Magnum to extend its operational capabilities to all its current and future clients as well.
Over the past 2 years Magnum has successfully developed and installed a private label client online system that allows the client’s customers to design and order a number of customized deliverables directly from their computer. This system is also able to provide complete MIS, Management Information Services, to the client and their customers. The system has significantly increased efficiencies for all parties, as it allows the end customer to have greater direct control over the final product and reduces overall production and delivery time.
Magnum offers clients a number of online and Internet integrated solutions allowing customers to develop programs that are tied to new and conventional media. Magnum also provides variable print programs that allow online customers to collect data and port it to Magnum’s production facility, providing unique one to one applications for conventional direct marketing programs.
Magnum has the distinction of being an accredited FSC certified printer, enabling today’s business to be environmentally conscious. Magnum’s President, Jana Lucatch and Mr. Rob Cole, Vice-President Production Operations are both FSC Expert Pioneers.
Intertainment Media Inc. is also pleased to announce that Mr. Rob Cole has been promoted to the position of Vice-President Production Operations for all of Intertainment’s programs. Mr. Cole has been the lead on this client program and was the primary person responsible for the new contracts. Rob Cole has been with Magnum for over 16 years, and has been instrumental in the development of both the conventional and online production systems for the entire company and its divisions.
“We are very proud to have Rob Cole as part of our executive management team. His dedication to our clients, staff and the overall business is exemplary. We are confident that his skills will assist us to increase value to all our stakeholders. The new business that the Magnum team has secured will increase our corporate revenues and overall client offerings,” said Mr. David Lucatch, CEO Intertainment Media Inc.
For industry information, comments and more, please visit the Intertainment Media blog at www.intertainmentmedia.com/blog
About Magnum
Magnum Fine Commercial Printing Limited is a forward thinking organization with a wealth of experience and knowledge, bringing over 20 years of service to clients providing high quality communications deliverables. Magnum is committed to the highest standards in design, production and customer service.
Magnum has a highly sophisticated, in-house, state of the art design centre that can handle all our client’s creative needs. Magnum utilizes a complete range of the latest generation production platforms, providing on-demand and commercial print services for marketing collateral and corporate communications. Magnum offers clients a range of variable data production services, providing one to many, one to few and one to one conventional communication applications for new media programs. Our clients can take data directly from their web site, online survey systems and other Internet programs and port the information to our production facility providing a direct mail piece to be generated, continuing consumer activity after they go offline.
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 Inc. 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.
Corporate Inquiries:
David Lucatch, CEO
905-763-3510
Investor Communications:
Buchalter Consulting
1-866-631-6537
Stan.Buchalter@BuchalterConsulting.ca
Online Investor Relations Hub:
AGORACOM
INT@Agoracom.com
www.agoracom.com/IR/intertainment
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