Mr. Neil Raymond reports

INNOVIUM ANNOUNCES SECOND QUARTER RESULTS

Innovium Media Properties Corp. has released its second quarter 2010 results.

Innovium had 2010 second quarter net earnings of $288,000 compared with a second quarter net loss of $1,087,000 in 2009 (a loss of $429,000 for the first six months of 2010 compared with a loss of $708,000 for the same period in 2009). For the three months ended June 30, 2010, the company recorded a negative operating cash flow, after changes in non-cash working capital items, of $258,000 compared with a negative operating cash flow of $378,000 for the second three months of 2009 (negative operating cash flow of $473,000 for the first six months of 2010 compared with a negative cash flow of $655,000 for the first six months of 2009).

In the second quarter of 2010, the company recorded an unrealized foreign exchange gain of $684,000 (unrealized foreign exchange loss of $1,038,000 for the second quarter of 2009) on its investment in Seed Media Group LLC. For the first six months of 2010, the company recorded an unrealized foreign exchange gain of $202,000 (unrealized foreign exchange loss of $602,000 for the same period in 2009) on its investment in Seed.

Compared with the second quarter of 2009, the company experienced a 5-per-cent decrease in general and administrative costs in the second quarter of 2010 (a 14-per-cent decrease for the first six months of 2010 compared with the same period in 2009). The year-over-year decrease reflects the efforts made by management to control costs as well as the fact that in 2009 consultants had been engaged for the purpose of accessing capital.

In the second quarter, an additional $192,500 (U.S.) was advanced as a Series C unit advance, accruing interest at 12 per cent per year. These Series C unit advances were subsequently converted into a secured Seed 18-per-cent bridge loan, convertible into Seed equity at a 15-per-cent discount to the price of a subsequent equity financing, at any time prior to maturity. Subsequent to the quarter-end, an additional $35,000 (U.S.) was advanced as part of the Seed bridge.

In the second quarter, Innovium received advances totalling $399,000 in the form of three-year term loans bearing interest at 12 per cent per year. In July and August of 2010, Innovium received advances totalling $87,000 on the same terms. The company has the option of repaying these loans in full, without penalty, after six months from the date of the advances.

                HIGHLIGHTS OF THE FINANCIAL STATEMENTS
 (Expressed in thousands of Canadian dollars, except per share amounts)    

                                    Three months ended    Six months ended
                                          June 30,             June 30, 
                                        2010       2009      2010      2009
Unrealized gains (losses) on
investments                          $   684   $ (1,038)  $   293   $  (602)
Interest and dividend income               -        302         2       604
General and administrative expenses      297        311       570       663
Interest expense                          79         30       144        38
Depreciation and amortization              5          7        11        14
Foreign exchange (loss) gain             (15)        (3)        1         5
Net earnings (loss)                  $   288   $ (1,087)  $  (429)  $  (708)
Net earnings (loss) per share        $  0.00   $  (0.01)  $ (0.00)  $ (0.01)
Cash used in operating activities
(after net change in working
capital balances)                    $  (258)  $   (378)  $  (473)  $  (655)