Mood Media Corporation Completes Bought Deal Private Placement

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, May 17, 2012 /CNW/ - Mood Media Corporation (ISIN: CA61534J1057) (TSX:MM/ LSE AIM:MM) ("Mood Media") announced today that it has completed its previously announced bought deal private placement of 6,789,000 common shares  at a price of $4.12 per common share, for aggregate gross proceeds of $27,970,680.

The syndicate of underwriters for the offering was co-led by Cormark Securities Inc. and Octagon Capital Corporation and included Byron Capital Markets Ltd. The net proceeds of the offering will be used for acquisition purposes, failing which general corporate purposes.

Stock Exchange Matters

Application has been made to the London Stock Exchange for admission of the common shares issued pursuant to the private placement, which will rank pari passu in all respects with the existing common shares, to trading on AIM. It is expected that admission to AIM will become effective and that dealings in the new common shares on AIM will become effective on May 25, 2012.

About Mood Media Corporation

Mood Media (TSX:MM/ LSE AIM:MM), named Canada's fastest growing company by PROFIT Magazine is a leading in-store media specialist that helps its clients communicate with consumers with a view to driving incremental sales at the point-of-purchase.

Mood Media works with 580,000 commercial locations in over 40 countries throughout North America, Europe, Asia and Australia.

Through its subsidiaries, Mood Media's products and services reach 100 million people every day in a broad client base including more than 850 U.S. and international brands in diverse market sectors that include: retail, from fashion to financial services; hospitality, from hotels to health spas; and food retail, including restaurants, bars, quick-serve and fast casual dining.

For further information about Mood Media, please visit www.moodmedia.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions and known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the impact of general market, industry, credit and economic conditions, currency fluctuations as well as the risk factors identified in the Risk Factors section of Mood Media's management discussion and analysis dated May 11, 2012 and the risk factors identified in the annual information form of Mood Media dated March 30, 2012, both of which are available on www.sedar.com.

There can be no assurance that Mood Media will be able to identify or complete acquisitions and there can no assurance of the terms of such acquisitions. If Mood Media is unable to identify or subsequently complete acquisitions, the proceeds of the offering may be used for general corporate purposes. While Mood Media considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Historical performance may not be indicative of future performance. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Mood Media. Forward-looking statements are given only as at the date hereof and Mood Media disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

The common shares issued pursuant to the private placement are not and will not be registered under the U.S. Securities Act of 1933, as amended,  and may not be offered or sold in the United States absent registration or applicable exemption from registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

Mood Media Corporation
Lorne Abony
CEO & Chairman
[phone]

Panmure Gordon (UK) Limited
Dominic Morley
Hannah Woodley [phone]