Company

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

Montreal, March 21, 2006 - Kangaroo Media Inc. (the “Corporation”) announces that in connection with the annual audit of it’s financial statements, the corporation’s auditors noted that one of the revenue recognition criteria relating to the sale by the Corporation of 1,500 units of Kangaroo TV to a client was not met as at September 30, 2005. These units had been accepted by the client and billed according to the provisions of the contract. Following an additional order requesting cosmetic changes to the devices, the units were kept in the premises of Kangaroo TV Inc., to facilitate their delivery to different sites, as planned.

In line with its auditors’ finding, the Corporation has proceeded with a restatement of the financial statements it initially filed for the period ended on September 30, 2005, and deferred recognition of the revenues associated with these units to subsequent quarters, which will correspond to the time of their delivery to the client that should take place in the course of the fourth quarter 2005 and the first two quarter of 2006.  All of the units concerned were fully paid for as at December 31, 2005. This modification does not affect the corporation’s cash position.

Following these restatements, the restated revenues for the 3 and 9 month periods ended on September 30, 2005 will total $389,000 compared to revenues of $913,000 indicated in the financial statements filed previously. The restated losses for the 3 and 9 month periods ended on September 30, 2005 will total $1,458,000 and $3,481,000 respectively, compared to losses of $1,235,000 and $3,258,000 indicated in the financial statements filed previously.

“This restatement affects in no way the financial situation of the company nor does it change our projections for the year in progress”, stated Normand Chartrand, CFO of Kangaroo Media. The company acted with the intent to service a major client to the best of its ability by keeping the units at its facilities pending changes ordered by this client. The corporation  is focused to act in accordance with accounting standards and feels this adjustment to be appropriate.

The Corporation expects to file restated financial statements reflecting these changes shortly.

About Kangaroo Media Inc.
Kangaroo.TV (www.kangaroo.tv) brings fans closer to the action, empowering them to interact with live and unique multimedia content. Kangaroo.TV is a wholly-owned subsidiary of Kangaroo Media, headquartered near Montreal, Canada, and listed on the TSX Venture Exchange (www.tsx.com) as KTV.

This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Kangaroo Media. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Kangaroo Media does not assume any obligation to update or revise them to reflect new events or circumstances.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
  
For further information: Kangaroo.TV: Normand Chartrand, Chief Financial Officer, (514) 990-0807 ext. 103 or nchartrand@kangaroo.tv ; Investor Relations: Sylvain Archambault, (866) 703-4887 or
s.archambault@evolutiongrp.com