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For Immediate Release
May 29, 2007
OMT SELLS RETAIL PREVIEW BUSINESS OF INTERTAIN DIVISION
Winnipeg, MB -- OMT Inc. (TSXV:OMT): Marieke Wijtkamp, President of OMT Inc. and Intertain Media Inc., announced today that Intertain has entered into a binding Purchase Agreement to sell the Retail Preview business assets and operations to Farr Media Corporation (“FMC”). FMC is a corporation owned and controlled by OMT’s past President & CEO, Scott Farr. Retail Preview is a service offered to media retail stores to enable the preview of CDs, DVDs and video game content prior to making a final purchase decision.
OMT will realize a gain from this transaction, which will be recorded in the second quarter financial results. In addition, Intertain is entitled to receive quarterly royalties beginning January 1, 2008 and ending December 31, 2011 on any ongoing subscription revenues from the current customers of Retail Preview. The company intends to use the proceeds for continued strategic investments in its core product suites, market growth initiatives and ongoing operations.
“The retail sale of music CDs and video DVDs continues to undergo an accelerated transition with the availability of competing online services. As a result, Retail Preview was viewed as a non-strategic asset for OMT going forward. OMT’s iMediaTouch and Retail Radio product suites currently enjoy a strong market position with continued growth prospects, and therefore are better aligned with the strategic vision of our company. We see this transaction as an important step in enhancing our focus on our higher potential and well positioned core products”, stated Marieke Wijtkamp.
The sale of Retail Preview to FMC allows for a smooth transition for Retail Preview’s customers, as Scott Farr has been previously involved with this service during his past role with OMT Intertain. Scott Farr will cease to be employed by OMT and shall be involved on a full time basis with FMC and Retail Preview.
OMT Inc. (TSXV:OMT) is an entertainment technology and content delivery provider to the broadcast and related industries. Intertain Media, the digital entertainment division, and iMediaTouch, the radio broadcast solution group, distribute audio content that is heard by millions of people worldwide every day through television, radio, satellite, cable and Internet broadcasts. To learn more about the Company, its products and services visit its web site at www.omt.net or www.intertainmedia.com.