Intertainment Completes First Tranche of Private Placement of Units

TORONTO, CANADA--(Marketwire - Oct. 26, 2012) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT)(ITMTF)(I4T.F) is pleased to announce that it has completed the first tranche of the non-brokered private placement of units of Intertainment ("Units") previously announced on October 4, 2012 (the "Placement"). The Company issued 6,875,986 Units at a price of $0.20 per Unit for aggregate gross proceeds of $1,375,197.20 pursuant to this first tranche of the Placement. Each Unit consists of one common share and one common share purchase warrant, with each warrant being exercisable into one common share at a price of $0.29 per share until October 26, 2014. The securities issued in respect of the first tranche of the Placement are subject to a four-month hold period expiring February 27, 2013.

The Company has received commitments for the balance of the $2.5 Million Placement and is awaiting final subscription documents to facilitate a further closing. The initial TSX Venture Exchange deadline for the placement was November 1, 2012; however, the TSX Venture Exchange has granted a 30 day extension to this deadline should the Company require additional time to close the next tranche of the Placement.

Pursuant to the first tranche of the Placement, the Corporation paid a total of $44,905.00 in finder's fees and issued a total of 224,525 finder's warrants, with each finder's warrant being exercisable into one common share at a price of $0.29 per share until October 26, 2014.

The Corporation anticipates using the proceeds from the Placement for general working capital and US expansion initiatives for Intertainment and its subsidiaries. Following the completion of the first tranche of the Placement, the Corporation has a total of 347,457,269 common shares issued and outstanding. The completion of the Placement is subject to TSX Venture Exchange acceptance and other regulatory approval.

About Intertainment - www.intertainmentmedia.com

Intertainment is one of Canada's leading technology incubators and is focused on developing, nurturing and investing in both North American and global technologies and companies that provide technology solutions for brands and consumers alike. Intertainment also owns and operates a number of key properties including Ad Taffy, itiBiti (KNCTR), Ortsbo, Deal Frenzy, The Sweet Card and Magnum, with investments in leading edge technologies and social media platforms including theaudience.com. For more information on Intertainment and its properties, please visit www.intertainmentmedia.com.

Intertainment is headquartered in the Toronto, Canada region, with offices in New York, Los Angeles and San Mateo, CA and is listed on the TSX Venture Exchange under the symbol "INT" (TSX VENTURE:INT) and in the US on the OTCQX Market under the symbol "ITMTF". Intertainment is also traded in Europe on the unofficial market of the Frankfurt Exchange through the XETRA trading platform under the symbol "I4T".

Forward Looking Information

This news release contains certain "forward-looking information" within the meaning of such statements under applicable securities law including statements relating to the Placement.

Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. 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. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on this forward-looking information.

This news release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such terms are defined in Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act")), absent registration or an exemption from registration. The securities offered have not been and will not be registered under the U.S. Securities Act or any state securities laws and, therefore, may not be offered for sale in the United States, except in transactions exempt from registration under the U.S. Securities Act and applicable state securities laws.