Digifonica International Inc. (TSX VENTURE:DIL) ("Digifonica") and Intertainment
Media Inc. (TSX VENTURE:INT) ("Intertainment"), announced today that, subject to
TSX Venture Exchange approval, they have entered into a non-binding letter of
intent (LOI) to offer Intertainment's proprietary feature rich Softphone
interface with Digifonica's proprietary managed service delivery architecture to
provide a fully integrated Internet telephony, IMS, SMS, Managed Content
Delivery, Multimedia and other next generation telecommunications white-label
solution for subscriber based social networking and commercial and community
based affinity partners worldwide.


Under the terms of the LOI, Intertainment will provide fully customized versions
of their "Itibiti" Softphone client offering subscribers with a desktop
interface that enables them with the ability to place and receive text messages,
peer to peer and regular telephone calls on-net to other subscribers, and
off-net to virtually any fixed, satellite or mobile communications customer
world-wide. In addition, the Softphone interface provides access to common
features of the affinity partners website and the ability to support ad-based
revenue generation, offering Intertainment and Digifonica with greater revenue
opportunities that can, in part, be returned to the affinity partners in the
form of higher royalties, or directly to the subscribers in the form of
subsidized national and international calling.


David Lucatch, President and CEO of Intertainment comments, "Intertainment has
had a tremendous amount of initial response from the international business
community for its Itibiti Softphone product, which allows companies to create a
feature rich, interactive desktop environment to share with its customers. The
addition of the Digifonica platform allows the program to expand globally, and
provides an opportunity for Intertainment to showcase its programs around the
world".


Colin Tucker, Chairman of Digifonica further comments, "Promoting
Intertainment's Softphone solution further compliments the value proposition
Digifonica offers to large-scale social networking and commercial and community
based affinity partners and provides Digifonica with a client based technology
solution that further emphasizes Digifonica's commitment to providing
world-class end-to-end solutions".


ABOUT INTERTAINMENT

Intertainment Media Inc. 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 delivers high value content, traffic management and advertising
solutions through its owned and investment properties, which include, 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).


ABOUT ITIBITI SOFTPHONE INTERFACE

Intertainment's Itibiti platform allows affinity partners to provide subscribers
with a completely customized desktop experience including; IP Telephony,
video/multimedia on demand, instant messaging, SMS, integrated in a feature rich
interface that includes a mini web browser 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.


ABOUT DIGIFONICA

Digifonica is a leading, global provider of advanced next generation Internet
telephony, IMS, SMS, Managed Content Delivery and Multimedia services and
solutions that enable partners to connect consumers with every major fixed,
VoIP, Mobile and Wireless carrier in the world.


Digifonica's advanced white-label managed delivery framework supports a
multi-currency, multi-tiered billing platform, enabling partners to deliver
advanced next generation solutions in the currency and rates and packages of
their choice, while Digifonica's patented-pending VoIP framework and
technologies ensure the highest possible quality of service (QoS) low cost
international calling rates and ability to support short code dialing such as
411, E911, 999 and 112 emergency services. Delivering solutions through
value-added partnerships enables Digifonica to focus resources on designing and
building more advanced consumer-driven technologies, while freeing our partners
to focus on their expertise in marketing and selling solutions to consumers. The
Company currently delivers scalable, resilient Internet telephony solutions to
clients worldwide, through their network operations and data centres in Canada,
US and Europe.


This news release contains forward-looking statements that involve risks and
uncertainties. Such forward-looking statements or information are based on a
number of assumptions that may prove to be incorrect. Although Digifonica and
Intertainment believe that the expectations reflected in such forward-looking
statements are reasonable, undue reliance should not be placed on such
forward-looking statements because Digifonica and Intertainment cannot give
assurance that such expectations will prove to be correct. Forward-looking
statements or information are based on current expectations, estimates and
projections that involve a number of risks and uncertainties, which could cause
actual results to differ materially from those anticipated by Digifonica and /
or Intertainment and described in the forward-looking statements or information.
The forward-looking statements or information contained in this news release are
made as of the date hereof and Digifonica and Intertainment do not undertake any
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or otherwise,
unless so required by applicable laws.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy the securities in any jurisdiction. The securities offered have
not and will not be registered under the United States Securities Act of 1933,
as amended, or any state securities laws and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirement.


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