Company

MONTREAL, Aug. 9 /CNW Telbec/ - Kangaroo Media Inc. announced today that its wholly-owned subsidiary, Kangaroo.TV Inc., has signed a five-year license and supply agreement with Nextel Communications, the title sponsor of the NASCAR NEXTEL Cup Series. Under the agreement, Kangaroo.TV will supply Nextel on an order-by-order basis with Generation II Kangaroo.TV multi-media handset devices and related products, equipment and services. Based upon certain initial purchase commitments under the agreement, Kangaroo expects to generate a minimum of US$10 million in revenues during the first year of the five-year term.

In connection with the signing of the license and supply agreement, Kangaroo.TV has received a US$326,219 order from Nextel for the delivery of key "head-end" components of the Generation II Kangaroo.TV System. As announced on April 29, 2005, Nextel has previously placed a US$450,000 order with Kangaroo.TV for the initial supply of Generation II Kangaroo.TV handset devices.

"This agreement with Nextel fits our rollout strategy to enlist major series-type sports events, such as motorsports, by offering fans, promoters and sponsors the benefits of this powerful new media," said Marc Arseneau, CEO
of Kangaroo Media. Nextel Communications is a leading provider of wireless communications on the largest all-digital wireless network in the U.S. The Generation II Kangaroo.TV System uses digital transmission to enhance sound andimage quality, develop external connectivity, enhance memory capacity, and develop other advanced capabilities. The Generation II handset devices are currently manufactured by VTech, a large consumer electronics manufacturer headquartered in Hong Kong. The supply of devices by Kangaroo.TV under the agreement with Nextel Communications is subject to standard commercial conditions and to the conclusion by Nextel of necessary arrangements with NASCAR.

About Nextel Communications Inc.

Nextel, a FORTUNE 200 company headquartered in Reston, Virginia, is a leading provider of fully integrated wireless communications services and has built the largest guaranteed all-digital wireless network in the country covering thousands of communities across the United States. Today 95 percent of FORTUNE 500 companies are Nextel customers. Nextel and Nextel Partners, Inc. currently serve 297 of the top 300 U.S. markets where approximately 263 million people live or work.

About Kangaroo Media Inc.

The company's unique handheld spectator device, Kangaroo.TV(TM), 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 in 2004. Kangaroo Media (www.kangaroo.tv) is headquartered in Montreal, Canada and listed on the Toronto TSX Venture Exchange as KTV ( www.tsx.com ).

Forward-Looking Statements

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.)

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