Mr. George Fleming reports

SOMEDIA ANNOUNCES PRIVATE PLACEMENT OF $200,000 CONVERTIBLE NOTES

SoMedia Networks Inc. plans to complete a non-brokered private placement for $200,000. Under the terms of the financing each note will be issued at a price of $10,000 and will be accompanied by 35,000 detachable common share purchase warrants, exercisable at a price of 20 cents per common share for a period of one year from the date of issuance. The notes will mature 12 months from the date of issuance and will bear interest at 12 per cent per annum.

In the event the company completes a financing of not less than $1.5-million (U.S.), the noteholders may elect to redeem the notes and all amounts owing thereunder. Additionally, the holders may convert the notes any time after Dec. 31, 2014. On conversion, the principal amount of the notes and all accrued interest will be converted into units of SoMedia at a conversion price based on the average closing price of the common shares during any 10-day period prior to providing the notice of the intent to convert with a minimum price of 20 cents per conversion unit. Each conversion unit will comprise one common share of SoMedia and one-half of one non-transferable share purchase warrant. Each warrant will entitle the holder to purchase one common share of the company at a price that is at a 50-per-cent premium to the conversion price of the notes until the date that is 36 months after the date of conversion.

All securities issued in connection with the private placement will be subject to a hold period of four months plus one day from the date of issuance of the notes. Completion of the private placement is subject to various conditions, including receipt of the approval of the TSX Venture Exchange. The proceeds from the notes are expected to be used for working capital purposes.