Company

MONTREAL, Aug. 23 /CNW Telbec/ - In relation with its August 10th news release, Kangaroo Media Inc. (TSX Venture: KTV) announces that it has completed a private placement by issuing an aggregate of 10,638,299 common shares at a price of $0.47 per share to the Caisse de dépôt et placement du Québec, SIPAR Inc. and Corporation de gestion de placements Claret, for gross proceeds to Kangaroo of $5,000,000. Each common share is accompanied by one common share purchase warrant. Each warrant will entitle the holder thereof to acquire one additional common share at a price of $0.66 per share for a period of 5 years following the closing of the private placement. Under applicable securities legislation and the policies of the TSX Venture Exchange, the common shares and warrants are subject to a hold period expiring on December 23, 2005. Kangaroo Media will apply the proceeds of the private placement to working capital in support of the execution of the five-year Licensing and Supply Agreement signed between Kangaroo.TV Inc, a wholly owned subsidiary, and Nextel Communications Inc, as announced by Kangaroo Media on August 9, and to accelerate the acquisition of exclusive on-site broadcast rights with several undisclosed sport properties, a key component of its business development strategy and revenue model.

About Kangaroo Media

The company's unique handheld spectator device (Kangaroo.TV) allows fans at live events to see, hear and understand all of the action, all of the time. Since 2003 Kangaroo.TV has been successfully deployed in motorsports at selected Champ Car races and tested at seven NASCAR races during 2004, and the company has entered into a five-year Licensing and Supply Agreement with Nextel Communications Inc, the title sponsor of the NASCAR Nextel Cup Series. Kangaroo Media ( www.kangaroo.tv ) is headquartered in Montreal, Canada and listed on the TSX Venture Exchange as KTV ( www.tsx.com ).

About the Caisse de dépôt et placement du Québec

The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2004, it held CA$102.4 billion of net assets. The leading institutional fund manager in Canada, the Caisse invests in the main financial markets as well as in private equity and real estate.

About Claret Asset Management

Claret Asset Management Corporation, founded in 1996, provides discretionary investment management services to private individuals.

About Sipar Inc.

SIPAR Inc. (Société d'Investissements en Participations) is a specialized fund management firm focused on a unique segment: Emerging companies with small capitalizations in Quebec.

(The TSX Venture Exchange has not reviewed and does not accept any responsibility for the adequacy or accuracy of this release.)

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