BV! Media to expand its presence in email marketing

    
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MONTREAL , Oct. 2 /CNW Telbec/ - BV! Media inc. (TSX Venture: BVM) signed yesterday a letter of intent to acquire a privately-held Quebec-based company active in online advertising and email marketing.

The purchase price will be $ 1 million , payable in cash, plus closing adjustments. For the fiscal year ended February 28, 2009 , the unaudited financial statements of the private company reported revenues of approximately $ 680,000 and income before taxes of approximately $ 170,000 .

The proposed arms-length acquisition is expected to significantly improve BV! Media's capacity to deliver email marketing campaigns and enhance its presence in this key online advertising segment.

The closing of the acquisition is conditional upon: financial, legal, accounting and technological due diligence by BV! Media; regulatory approval; and financing. To this end, BV! Media has engaged Burkman Capital Corporation to act as exclusive placement agent for a private placement of common shares in an amount of up to $ 3.5 million . The net proceeds from the private placement will be used in part to fund the acquisition, while any balance will be used for the strategic development of BV! Media's business. The private placement is expected to close in early November, and is subject to approval by the TSX Venture Exchange.

About BV! Media inc.

BV! Media is a leading Canadian Internet media company, active in Internet content and advertising.

BV! Media operates the leading Canadian interactive advertising network with over 400 high quality sites. The BV! Media network reaches over 12 million unique users per month across Canada (source: comScore, June 2009).

BRANCHEZ-VOUS!, the content division of BV! Media, produces and commercializes French-language Internet content. It operates BRANCHEZ-VOUS.com, a news/tech portal, and Showbizz.net, an entertainment news site.

BV! Media is listed on the TSX Venture Exchange under the symbol BVM and has approximately 60.4 million shares outstanding. Additional information on the Corporation can be obtained on SEDAR and at www.bvmedia.ca.

    
    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

This press release contains certain forward-looking statements that reflect the current views and/or expectations of BV! Media's management with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and BV! Media inc. undertakes no obligation to update any forward-looking statements, except as may be required by applicable securities legislation.

For further information: Media: Patrick Pierra, Co-President and Co-Chief Executive Officer, [phone], ext. 249, [email protected]; Analysts and investors: Tom Vorias, Chief Financial Officer, [phone], ext. 223, [email protected]