iMedia International Releases Results of 2005 Operations Net Revenues Increase 159 Percent to $5.9 Million -- Gross Profits Improve Significantly

Company Prepares for Aggressive Growth in 2006


SANTA MONICA, Calif., April 20, 2006 (PRIMEZONE) -- iMedia International, Inc. (OTCBB:IMNL) (www.imedia-intl.com) released its results of operations for the year ended December 31, 2005. The Company saw a dramatic increase in net sales to $5.93 Million, an increase of $3.64 million or 159% over the comparable 2004 period.

In addition, the Company showed a significant improvement in gross profitability with an increase from a negative gross loss of $252,000 to $900,000 in gross profit. This represents an increase of $1.12 million over the comparable 2004 period. The improvement was a direct result of their increased sales to a larger and developing client base. According to the Company, they continue to contract custom interactive media projects with both new and repeat customers. Most importantly, gross margin rates on these projects are now more typical of their targeted, future anticipated margins.

"We considered 2004 and 2005 as an important start-up period where we concentrated mainly on developing our customer acquisition programs and refining our pilot programs," said Kevin Plate, EVP of Sales and Business Development. "We realized that in order to attract new customers to our new media, we often had to price our initial pilot programs below actual costs. Since we now have several years of success, we have been able to adjust our pricing accordingly."

"We are thrilled to see the continuing escalation in our sales and gross profitability," said David MacEachern, CEO of iMedia International. "It is important to understand that this growth reflects only the expansion of our custom solution business which we concentrated on during 2004 and 2005. When we factor in the launch of our newspaper syndication program which is beginning later this month, and our plans for a national newspaper rollout during 2006 and 2007, I am very confident that this aggressive growth will be sustained."

Total operating expenses increased $5.25 million to $8.97 million for the year ended December 31, 2005 a 141% increase over the comparable 2004 period. The increase is primarily attributable to an increase in selling expenses of $1.7 million or 152%, and an increase in general and Administrative expenses of $3.6 million or 166%. This compares to $6.2 million in the comparable 2004 period.

The Company attributes the increase in selling expenses directly to the increase from three to eight full-time sales executives, and their related travel and entertainment costs. Also, the Company was required to continue underwriting revenue shortfalls for its Hollywood Previews Entertainment iMagazine while they prepared to launch their national newspaper syndication rollout. This national rollout is scheduled to begin on April 30, 2006 at which time subsidizes should decrease as the program begins to generate new revenues.

Increases in the Company's General and Administrative expenses were primarily due to an increase in professional fees associated with its various financings during 2005. These included approximately $3.2 million in non-cash expenses, as opposed to approximately $44,000 for the comparable period in 2004. The majority of these non-cash expenses were related to non-recurring costs associated with the issuance of common stock and warrants to prior investors, investment bankers, to advisors and consultants, and for promotion of its ongoing financing activities.

"We are very pleased to see the increased acceptance of our convergent media in the marketplace and look forward to continued top-line growth during the second half of 2006 as our newspaper syndication program comes on line," said Anthony Fidaleo, CFO. "Despite these milestones however, we are disappointed in the impact that the costs of financing has had on our financial statements as well as our operations. We look forward to the national adoption of our newspaper syndication business, and we believe that our revenue growth will begin to offset our cash burn over the next several quarters."

During the period, the Company recorded a $12.2 million net loss, which includes $4.1 million in non-cash other expense items. These non-cash items were primarily related to the costs associated with the issuances of preferred stock and the write-down of certain investments during the year ended December 31, 2005. The increase in non-cash other expenses totaled $3.23 million for a 345% increase over the comparable 2004 period.

On September 28, 2005, the Company filed a registration statement on Form SB-2, which has not yet been declared effective. The Company is still responding to comments from the Securities and Exchange Commission and is required to amend its registration statement to include its financial statements for the period ending December 31, 2005. The Company anticipates that it will have its registration statement amended and respond to the SEC's comments around May 1, 2006.

About iMedia International, Inc.

iMedia International, Inc. (IMNL) is a publicly held digital media solutions company producing DVD's, and CD-ROM's for digital multimedia marketing and promotional campaigns. iMedia publishes proprietary and custom digital iMagazines and offers expert digital media solutions services including: strategic planning, content aggregation and production, disc audio/video design, authoring, editing and compression, disc packaging manufacturing and distribution. A key feature of iMedia's technology is its iReporting(tm) real-time, online tracking system which provides quantitative data on disc viewer usage patterns and effectiveness of iMedia marketing and promotional campaigns.

For more information on iMedia International, Inc. please contact:



Kelly R. Konzelman, Executive Vice President
1721 21st Street, Santa Monica, CA 90404
Phone: (310) 453-4499
Fax: (310) 453-6120
kellyk@imedia-intl.com

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements about the Company's future financial performance, and the increase in sales and top-line revenue growth. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, general economic risks and uncertainties, and various other information detailed from time to time in the Company's filings with the United States Securities and Exchange Commission. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof. The forward-looking statements contained in this release should not be relied upon for the basis of any investment decisions. The Company faces other risks that are not contained in this disclosure. Investors should refer to the full filing of the Company's Annual Report on Form 10-KSB dated April 19, 2006 at http://www.sec.gov, before making an investment decision.



                      IMEDIA INTERNATIONAL, INC.
                       COMBINED BALANCE SHEETS
                 DECEMBER 31, 2005 AND DECEMBER 31, 2004

                                  December 31,   December 31,
                                     2005           2004
                                                  (Restated)
                                 -------------  ------------
 Assets
 Current assets:

 Cash                            $ 1,397,904    $   453,304
   Accounts receivable,
     net of allowance
     for doubtful accounts
     of $25,000 and $0             1,820,483         46,444
   Work in process                    27,779             --

   Prepaid expense                   13,5621            554
                                 -----------    -----------
      Total current assets         3,259,727        500,302
   Property and equipment, net       140,486         78,211
   Investment in available
     for sale securities                  --      1,066,461
                                 -----------    -----------
      Total assets               $ 3,400,213    $ 1,644,974
                                 ===========    ===========

 Liabilities and
   shareholders' deficit
 Current liabilities:
   Accounts payable and
     accrued expenses            $ 1,124,761    $   906,779
   Accrued liquidated
     damages                       1,209,518             --
   Deferred revenue and
     customer deposits                90,440             --
   Due to affiliate                   46,669             --
   Notes payable                          --        950,022
   Note payable -- related party       8,483        130,000
                                 -----------    -----------
     Total current liabilities     2,479,871      1,986,801
   Warrant liability               5,115,305             --
                                 -----------    -----------
     Total liabilities             7,595,176             --
                                 -----------    -----------

 Commitments and contingencies
 Mandatory redeemable
   convertible preferred
   stock, net of discount
   of $2,187,109                     852,891             --

     Total shareholders'
       deficit                    (5,047,854)      (341,827)
                                 -----------    -----------
     Total liabilities and
       shareholders' deficit     $ 3,400,213    $ 1,644,974
                                 ===========    ===========


                        IMEDIA INTERNATIONAL, INC.
         COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
              FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004

                                           Years Ended
                                           December 31,
                                    2005                   2004
                                                        (Restated)
                            -------------------    -------------------
 Net sales                      $  5,931,626           $  2,290,534
 Cost of sales                     5,061,153              2,542,579
                                ------------           ------------
 Gross profit (loss)                 870,473               (252,045)
                                ------------           ------------
 Operating expenses:
 Selling                           2,775,346              1,100,737
 General and administrative        5,609,575              2,112,412
 Management and consulting
   fees-related party                581,000                507,000
                                ------------           ------------
 Total operating expenses          8,965,921              3,720,149
                                ------------           ------------
 Loss from operations             (8,095,448)            (3,972,194)
                                ------------           ------------
 Other expenses:
 Interest on fixed
   conversion feature
   and amortization
   of discount                       126,204                851,418
 Warrants issued for
   extension on
   Convertible note payable          340,478                     --
 Loss on revaluation of
   warrants                          533,737                     --
 Liquidated damages on late
   filing of registration
   statement                       1,379,757                     --
 Interest expense, net                61,246                 86,922
 Loss on investment                  573,975                     --
 Impairment loss on
   investment in available
   for sale securities             1,156,269                     --
                                ------------           ------------
 Total other expenses              4,171,666                938,340
                                ------------           ------------
 Loss before provision
   for income taxes              (12,267,114)            (4,910,534)
                                ------------           ------------
 Provision for
   income taxes                        4,000                  3,260
                                ------------           ------------
 Net loss                        (12,271,114)            (4,913,794)
 Beneficial conversion
   feature on the Series B
   convertible preferred
   stock                           3,753,485                     --
 Interest on fixed
   conversion feature and
   amortization of debt
   discount on Series A
   redeemable preferred
   stock                             852,891                     --
 Preferred stock dividends
   Series A and B                    214,907                     --
 Preferred stock dividends
   -- iPublishing                     27,000                 27,000
                                ------------           ------------

 Net loss allocable to
   common shareholders          $(17,119,397)          $ (4,940,794)
                                ------------           ------------
 Other comprehensive loss,
   net of tax unrealized
   holding loss on securities             --           $ (1,130,451)
                                ------------           ------------
 Comprehensive loss             $(17,119,397)          $ (6,071,245)
                                ============           ============
 Net loss per common share
   from operations
   -- Basic and Diluted         $      (0.24)          $      (0.08)
                                ============           ============
 Weighted average common
   outstanding shares,
   Basic and Diluted              70,552,192             61,655,666
                                ============           ============


                    THE IMEDIA INTERNATIONAL, INC.
                  COMBINED STATEMENTS OF CASH FLOWS
            FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004

                                        2005              2004
                                -------------------------------------
                                                (Restated  Note 2)
 Net loss                         $(12,271,114)   $ (4,913,794)
   Adjustments to reconcile
     net loss to net cash
     used in operating
     activities:
   Interest on fixed
     conversion feature and
     amortization of debt
     discount                           62,936         851,419
   Depreciation                         46,716          48,111
   Allowance for doubtful
     accounts                           25,000              --
   Loss on sales of
     investments                       599,793              --
   Impairment loss on
     investment for sale
     securities                      1,130,451              --
   Issuance of additional
     warrants to investors             810,563              --
   Issuance of warrants
     for services                      481,870         434,378
   Issuance of warrants for
     extension of notes payable        340,478              --
   Common stock issued
     for services                    2,050,811         151,208
   Common stock issued for
     liquidated damages                119,840              --
   Common stock issued for
     preferred stock dividends         184,690              --
   Common stock issued to
     employees for
     signing bonus'                     30,000              --

   Common stock issued for
     extension of related
     parties notes payable              94,900              --
   Net change in warrant
     liability due revaluation         533,737              --
   Net change in deferred
     compensation                       98,461        (149,246)
   Changes in assets
     and liabilities
       Accounts receivable          (1,799,039)        (46,444)
       Work in process                 (27,779)         71,056
       Prepaid expenses and
         other assets                  (13,007)          2,841
       Accounts payable and
        accrued expenses               205,024         612,532
       Accrued liquidated damages    1,209,518              --
       Deferred revenue and
         customer deposits              90,440              --
                                  ------------    ------------
       Net cash used in
         operating activities       (5,995,711)     (2,937,939)
                                  ------------    ------------

 Cash flows from
     Investing activities
   Purchase of equipment              (108,993)        (74,488)
   Due from shareholder                 15,047         (55,047)
   Due to related parties                   --         (41,875)
   Due to/from affiliates, net          46,669              --
   Proceeds from sale of
     investment in available
     for sale securities               466,668              --
                                  ------------    ------------
   Net cash provided by
     (used in) investing
      activities                       419,391        (171,410)
                                  ------------    ------------
 Cash flows from financing
     activities
   Common stock committed
     for interest on related
     party notes                       (94,900)         94,900
   Issuance (cancellation)
     of committed shares               (50,000)         50,000
   Payments on notes payable
     -- related parties               (130,000)        (14,254)
   Payments on notes payable        (1,000,000)       (251,035)

   Proceeds from notes payable
     -- related parties                  8,483         144,349
   Proceeds on notes payable                --       1,250,000
   Proceeds from issuance of
     redeemable Series A
     preferred stock, net            2,712,953              --
   Proceeds from issuance of
     Series B preferred
     stock, net                      4,166,331              --
   Proceeds from issuance of
     common stock from exercise
     of warrants, net                1,134,960       1,253,000

   Proceeds from issuance of
     common stock for cash              15,000              --

   Proceeds from collection of
     subscription receivable                --         370,000
   Offering costs paid with
     common stock                           --        (189,790)
   Dividend on iPublishing
     preferred stock                   (27,000)        (27,000)
   Dividends on Series
     A and B preferred stock          (214,907)             --
                                  ------------    ------------
   Net cash provided by
     financing activities            6,520,920       2,680,170
 Increase (decrease) in cash           944,600        (429,179)
 Cash, beginning of year               453,304         882,483
                                  ------------    ------------
 Cash, end of year                $  1,397,904    $    453,304
                                  ============    ============

            

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