EXHIBIT 99.1
iMedia International, Inc. Reports Record Net Revenues
for Quarter Ended September 30, 2004.
SANTA MONICA, Calif., -- As previously reported in its Quarterly Report on
Form 10-QSB for the quarter ended September 30, 2004, filed with the
Securities and Exchange Commission on November 19, 2004, iMedia International.
Inc. (OTC:IMNL.OB) is pleased to report record net revenues of $756,794 in the
third quarter ended September 30, 2004 compared to $190,027 during the third
quarter of 2003, an increase of 398%. The increase in revenues is indicative
of the Company's increased ability to procure new business and the shift in
its sales emphasis towards special edition and custom disc production. "We
have focused much of our sales and marketing activities towards creating
continuity programs with traditional print media and direct response marketing
companies," stated Scott Kapp, President of iMedia International, Inc. He
concludes, "we are very encouraged by our results."
In recent developments, iMedia:
* Was a featured sponsor at the Electronic Retailers Association
convention in Las Vegas, Nevada;
* Produced a state-of-the-art promotional disc for entertainment giant
Cirque du Soliel;
* Produced a promotional DVD for Warner Brothers Television
* Produced a promotional DCD for Showtime Networks;
* Produced an interactive product catalog for the TeleBrand's Invention
Channel;
* Contracted with NBC Television to produce an interactive CD-ROM for
distribution in December 2004.
Net sales for the three months ended September 30, 2004 were $756,794 compared
with $190,027 for the three months ended September 30, 2003.
Cost of sales increased to $668,000 from $148,858 for the three months ended
September 30, 2004 and 2003, respectively. The increase in cost of sales was
due primarily to an increase in total number of discs produced and shipped,
including costs for authoring, printing and replication. Gross profit
contribution was $88,794 (or 12%) and $41,169 (or 22%) for the three months
ended September 30, 2004 and 2003, respectively.
Operating expenses increased to $1,118,471 (149%) for the three months ended
September 30, 2004, from $449,555 for the same period in the prior year. The
increase in expenses was due to continued development of our products, growth
initiatives, expenses associated with expanded sales efforts, as well as
substantial legal and accounting costs associated with the maintenance of our
fully-reporting status.
Interest expense, relating to convertible debt interest, increased to $235,767
for the three months ended September 30, 2004. Bank interest of $6,667 was
incurred for the same period in the prior year.
Net loss for the three months ended September 30, 2004 increased to
($1,265,444) compared to ($408,386) for the prior year's comparable period.
This represents an increased loss of $857,058 or 210%. The increase in net
loss is primarily attributable to our expanded operations, increased loan
interest, non-cash charges for warrants associated with various convertible
notes, the substantial legal and accounting costs related to our fully-
reporting status, and our increased sales and marketing efforts.
"I am very excited about the continuing growth of our business and our
revenues. We have seen a huge ramp-up in business since we began focusing on
the production of custom discs. Our revenue projections for Q4 look very
strong, and we expect to begin the integration of several new proprietary
products for 2005 that have the ability to deliver much higher margins. All
in all, we are very encouraged with our progress," commented David MacEachern,
iMedia International, Inc.'s Chief Executive Officer.
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 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
iMedia International, Inc.
1721 21st Street, Santa Monica, CA 90404
(310) 453-4499
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 to the future financial performance of the Company.
Examples of forward-looking statements included in this press release include
statements regarding the Company's ability to procure new business, the
Company's revenue projections for its fourth fiscal quarter 2004, the
Company's integration of several new proprietary products for 2005, and the
ability of those products to deliver a much higher margin. 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. Please refer to the full filing of the Company's Quarterly Report on
Form 10-QSB for the quarter ended September 30, 2004, filed with the
Securities and Exchange Commission on November 19, 2004, at
http://www.sec.gov.