Mr. George Fleming reports

SOMEDIA ANNOUNCES UP TO US$1.5-MILLION DEBENTURE FINANCING

SoMedia Networks Inc. has arranged a private placement of convertible debentures in the principal amount of $1.5-million (U.S.). For each $25,000 in the principal amount of debentures issued, the subscriber will receive 131,578 detachable common share purchase warrants, with each warrant exercisable into a common share of the company at a price of 25 cents per common share for a period of three years from the date of issuance. The debenture will mature three years from the date of issuance and will bear interest at 12 per cent per annum, compounded monthly with interest accruing and payable in full on the maturity date.

Each debenture will be secured by granting the debentureholder a security interest over all of the company's present and after-acquired property and assets as described in the debenture. All security interests granted to the holders will rank pari passu. The holder may convert the debenture any time. On conversion, the principal amount of the debentures will be converted into shares of SoMedia at a price of 19 cents per share.

SoMedia also announces that it has engaged the services of Scarsdale Equities LLC to assist with the private placement. Scarsdale is an institutional FINRA member broker/dealer and SIPC member with offices in New York, N.Y., and San Francisco, Calif.

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 debenture. Completion of the private placement is subject to various conditions, including receipt of the approval of the TSX Venture Exchange. The proceeds from the debentures are expected to be used for working capital purposes. Finders' fees may be payable in connection with the private placement.

We seek Safe Harbor.