Kangaroo Media settles patent complaint and acquires exclusive worldwide licensing rights from Immersion



    MIRABEL, QC, Feb. 4 /CNW Telbec/ - Kangaroo Media Inc. ("Kangaroo") and
Immersion Entertainment LLC ("Immersion") announced today that they have
signed definitive licensing and settlement agreements to end the complaint
filed in the United States District Court for the Eastern District of Texas,
Tyler Division on February 13, 2007 by Immersion against Kangaroo and other
defendants, alleging infringement of Immersion's United States Patents
6,578,203 and 7,124,425. Under the Patent License Agreement, Immersion grants
Kangaroo exclusive worldwide rights to its intellectual property portfolio
until December 31, 2010. Thereafter, the exclusive worldwide rights may under
certain terms and conditions be extended until the expiration of the last
Immersion issued patent.
    The Settlement Agreement covers Kangaroo and the other defendants.
Additionally, under the Patent License Agreement, Immersion grants Kangaroo
rights in all issued patents and pending applications relating to Immersion's
intellectual property portfolio and technology.
    The Patent License Agreement provided for a payment by Kangaroo to
Immersion of US$2.0 million on February 1, 2008, in addition to payments of
royalties on covered sales retroactive to January 1, 2008 based on a royalty
schedule set forth in the Patent License Agreement. The Patent License
Agreement is subject to minimum royalties of US$1.0 million for each of 2008
and 2009, which will be applied against the royalty schedule.
    At the end of 2010, Kangaroo will have the option to retain the exclusive
worldwide rights to Immersion's intellectual property portfolio, subject to
minimum yearly royalty payments as set forth in the Patent License Agreement.
In the event Kangaroo decides not to exercise such option, the license rights
granted under the Patent License Agreement could become non-exclusive at the
option of Immersion and become subject to royalties on covered sales.
    Immersion's Licensed Patent portfolio includes three issued patents in
the United States, one in Australia and one in China. Additional patent
protection has been sought with ten pending applications filed in the United
States, three in Europe, three in Canada and one in Japan.
    "The settlement with Immersion is a significant milestone for Kangaroo.
Going forward, Kangaroo will benefit from much broader intellectual property
protection. With the Immersion settlement, Kangaroo obtains immediate
worldwide exclusive protection for Immersion's sizeable intellectual property
assets. Furthermore, the exclusive license enables Kangaroo and Immersion to
benefit from injunctive remedies and damages in situations where a competitor
would infringe the licensed patent portfolio," said Alain Charette,
Executive VP of Corporate Development of Kangaroo.
    "In addition, the parties are avoiding the significant legal fees and
expenses which would be associated with defending the Immersion complaint.
This settlement also frees up valuable management time which can be invested
in continuing to execute our business plan to grow sales, diversify our
revenue sources, better compete globally and further develop our technology
and its applications," said Robert Mimeault, President and COO of Kangaroo.
    "Both organizations will largely benefit from this settlement which will
free-up financial and human resources. It will help further the development
and improvements to our technology and provide broader protection and
enforceability for our intellectual property," said Mr. Taz L. Anderson,
Chairman and founder of Immersion.
    The agreements are subject to normal and customary commercial terms and
conditions including reasonable guarantees, performance, breach and
termination provisions.

    About Kangaroo Media Inc.

    Kangaroo Media Inc. develops, manufactures, commercializes, sells and
rents hand-held wireless audiovisual multi-functional entertainment systems
that allow users to enhance their on-site viewing experience of sporting
events. Kangaroo Media's unique proprietary technology delivers real-time
video, audio and data content to each fan's hand-held Kangaroo TV device. It
gives fans the ability to create their own live-action sporting event on-site.
Kangaroo Media, headquartered near Montreal, Canada, is listed on the Toronto
Stock Exchange (www.tsx.com) as KTV. For more information, visit
www.kangaroo.tv.

    About Immersion Entertainment, LLC

    Immersion Entertainment, LLC is a mobile content provider, specializing
in the wireless distribution of entertainment-related content. Based in
Atlanta, Georgia, Immersion was founded in 1999 by Taz Anderson and a team of
entrepreneurs. Mr. Anderson is a former Georgia Tech and NFL football player,
and has achieved success as an entrepreneur in real estate, outdoor
advertising and sports-related marketing ventures. For more Information
call 770-434-8104.

    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. 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 unless required by law Kangaroo
does not assume any obligation to update or revise them to reflect new events
or circumstances.
    %SEDAR: 00019975EF




For further information:

For further information: Investors Relations: Kangaroo Media Inc.,
Claude Michaud, Executive Vice-President and Chief Financial Officer, (450)
595-2004, cmichaud@kangaroo.tv; Media Relations: Edelman, Emilie Verret, (514)
844-6665, poste 228, emilie.verret@edelman.com; For more information about
Immersion Entertainment LLC: Mr. Taz Anderson, (770) 434-8104

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KANGAROO MEDIA INC.

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