Score Media Reports Record Sales and Earnings with Year-end Results

15 November 2006

Score Media Inc. (TSX: SCR) announces its financial results for the fiscal year ended August 31, 2006:

- Revenues increased to $29.1 million compared to $25.1 million in

the prior year, an increase of 15.9%,

- EBITDA increased to $5.3 million compared $4.8 million in the

prior year, an increase of 10.4%

- Net income increased to $13.0 million, or $0.14 per share compared

to $2.8 million or $0.03 per share in the prior year. Fiscal 2006

net income includes $9.1 million pertaining to the release of a

portion of a valuation allowance in respect of future tax assets

- Fourth quarter revenues increased to $6.9 million compared to

$6.1 million in the prior year, an increase of 13.1%; fourth

quarter EBITDA increased to $1.0 million compared $0.7 million in

the prior year, an increase of 42.9%

- During the year ended August 31, 2006, Score Media completed a

$10.4 million public equity offering at a price of $0.85 per share

- With a strong programming line-up, including WWE Raw and a full

complement of live NBA and NCAA games, The Score Television

Network achieved its highest audience ratings in its history

- In October 2006, Score Media's satellite radio network, Hardcore

Sports Radio announced that it was now available to over

5.1 million subscribers across Canada and the United States.

- Score Media continues to build its interactive platform, with the

launch of Score Mobile, Score Poker, Score Fantasy, and Team

Hardcore.

"This has been a very strong year for Score Media," said John Levy, Chairman and Chief Executive Officer of Score Media Inc. "Our performance and financial results in 2006 reflect the strength of The Score Television Network and the sports media platform that we have been building over the past number of years."

Throughout the past year, the Company achieved success through the growth of The Score Television Network and the development of several innovative ventures which have driven growth in market share, profitability and cash flow.

During fiscal 2006, The Score Television Network had success in expanding its viewers and generating increased advertising due in part to the return of NHL hockey, strong audience growth from new programming initiatives such as professional poker tournaments, and increased live event programming including a robust schedule of NBA and NCAA basketball, and NCAA football. Also in 2006, The Score re-launched its trademark ticker, with a new look and more detailed sports information.

To complement The Score's poker telecasts, Score Media launched Score Poker, a "play-for-fun", online multi-player poker game in March 2005. Within eight months and with the help of televised cross-promotion, Score Poker became the leading "play-for-fun" poker site in Canada. After the initial success of Score Poker, Score Media pursued an opportunity to capitalize on its brand and database through a licensing deal with an experienced online poker software provider and re-launched its online poker offering in July 2006. The Company anticipates increasing licensing revenue from this strategy in fiscal 2007.

In October 2005, Score Media launched Score Mobile to extend The Score brand and content into the wireless medium. Score Mobile version 1.0 provides constant sports updates, including up-to-the-minute game scores and odds for major professional and college sporting events. Score Media believes the Canadian mobile market represents an exciting business platform for The Score to expand its audience and grow its business with hardcore sports fans.

In December 2005, Score Media launched Hardcore Sports Radio, as part of the introduction of Sirius Satellite Radio to the Canadian market. Hardcore Sports Radio offers up-to-the-minute sports news, information and live events on a dedicated satellite radio channel available to over 5.1 million subscribers across Canada and the United States. Hardcore Sports Radio also features a unique ticker application for radio units broadcasting on the Sirius Satellite Network, which displays live sports scores and odds, as well listing and scheduling information for sporting events broadcast across the Sirius Satellite Radio Network.

"We continue to lead the Canadian sports media industry with the development of related sports media properties and applications such as Hardcore Sports Radio, and interactive initiatives such as Score Poker, Score Mobile and unique web-based programs," says Levy. "These new initiatives, in combination with the core of our platform, The Score Television Network, increase the depth of our relationship with hardcore sports fans and offer strong growth potential for our business."

ABOUT SCORE MEDIA INC.

Score Media Inc. (TSX: SCR) is a media company committed to creating consumer value through creative solutions, technology, and innovation in response to sports fans' growing desire for increased participation in their consumption of sports content. Score Media's main asset is The Score Television Network, a national specialty television service providing sports, news, information, highlights and live event programming, available across Canada in more than 5.9 million homes. Score Media also operates Hardcore Sports Radio, a satellite radio network available across North America on Sirius Satellite Radio, and other interactive assets including theScore.ca, Score Mobile, and Score Poker.

Forward-looking (safe harbour) statement

Statements made in this news release that relate to future plans, events

or performances are forward-looking statements. Any statement containing

words such as "believes", "plans", "expects" or "intends" and other

statements which are not historical facts contained in this release are

forward-looking, and these statements involve risks and uncertainties and

are based on current expectations. Consequently, actual results could

differ materially from the expectations expressed in these forward-

looking statements.

FULL YEAR RESULTS

The following tables reconcile net income to net income before interest, income taxes, depreciation and amortization:

-------------------------------------------------------------------------

Year Year

ended ended

August 31, August 31,

2006 2005

-------------------------------------------------------------------------

Net income for the period $ 13,036 $ 2,753

Less:

Income from discontinued operations 91 148

Income tax recovery 9,142 -

Add back:

Depreciation and amortization 1,159 1,238

Interest expense, net 360 945

-------------------------------------------------------------------------

Net income from continuing operations

before interest, income taxes,

depreciation and amortization $ 5,322 $ 4,788

-------------------------------------------------------------------------

Year ended August 31, 2006 compared to Year ended August 31, 2005

Consolidated

The following selected financial data of the Company as it relates to the three years ended August 31, 2006, is derived from the audited financial statements of the Company.

Year ended August 31

($000's except per share amounts)

---------------------------------

2006 2005 2004

---------------------------------

Earnings Statement Data

Revenue 29,075 25,063 19,963

Income from continuing operations before

interest, income taxes, depreciation

and amortization 5,322 4,788 427

Net income 13,036 2,753 (427)

Earnings per share 0.14 0.03 (0.01)

Dividends declared per share - - -

Balance Sheet Data

Total Assets 32,086 9,274 8,042

Long-term Financial Liabilities 9,090 10,000 -

------------------------------------------------------------------------

Income Income Income

from from per share

continu- dis- from

ing continued continuing Income

Quarterly oper- oper- Net oper- per

Results Revenue ations ations income ations share

-------------------------------------------------------------------------

($000's) ($000's) ($000's) ($000's) ($) ($)

-------------------------------------------------------------------------

August 31, 2006 6,935 9,805 - 9,805 0.11 0.11

-------------------------------------------------------------------------

May 31, 2006 8,010 1,618 91 1,709 0.02 0.02

-------------------------------------------------------------------------

February 28, 2006 6,750 413 - 413 0.00 0.00

-------------------------------------------------------------------------

November 30, 2005 7,380 1,109 - 1,109 0.01 0.01

-------------------------------------------------------------------------

August 31, 2005 6,104 211 - 211 0.00 0.00

-------------------------------------------------------------------------

May 31, 2005 7,326 1,728 148 1,876 0.02 0.02

-------------------------------------------------------------------------

February 28, 2005 5,587 153 - 153 0.00 0.00

-------------------------------------------------------------------------

November 30, 2004 6,046 513 - 513 0.01 0.01

-------------------------------------------------------------------------

The Company's revenues have historically reflected a seasonality trend, with the third quarter (ending May 31st) being the strongest, followed by the first quarter (ending November 30th), the fourth quarter (ending August 31st) and finally the second quarter (ending February 28th). This seasonality reflects general trends for sports media advertising, which in turn reflects the schedules (particularly the playoffs) of the major sports leagues.

Revenues for the year ended August 31, 2006 increased by $4.0 million to $29.1 million compared to $25.1 million in the year ended August 31, 2005.

Advertising revenues for the year ended August 31, 2006 increased by approximately $3.1 million compared to the prior year. Advertising revenues increased at The Score due in part to the return of NHL hockey but also due to strong audience growth resulting from core new programming initiatives and increased live event programming. The Score benefited from brand-extension marketing, as television sales were buoyed by cross-marketing with other platforms such as Score Mobile, Score Poker and theScore.ca. A portion of the $3.1 million increase in advertising revenues also resulted from advertising and sponsorship support for each of its new business ventures. Score Mobile, Score Poker, theScore.ca and Team Hardcore (an event marketing initiative) all generated advertising revenue in their inaugural year, and the Company anticipates continued growth in fiscal 2007 and beyond from each of these initiatives.

Subscriber fee revenue increased by approximately $0.9 million for the year ended August 31, 2006 compared to the prior period. This increase in subscriber revenue reflected continued growth in the subscriber base with several broadcast distribution undertakings compared to fiscal 2005.

Operating expenses excluding rights fees were $21.7 million for the year ended August 31, 2006 compared to $19.2 million in the prior year, an increase of $2.5 million. This increase resulted from programming expenses associated with more live event programming, marketing expenses associated with the launch of new initiatives, greater occupancy costs at the Company's facilities, as well as expenses associated with federal tariffs for music rights, higher CRTC license fees, and higher compensation costs to support the general increase in business.

Program rights were $2.0 million for the year ended August 31, 2006, compared to $1.2 million in the prior year. The increase in program rights at The Score reflects higher program rights fees for English Premier League football, Toronto Raptors basketball as well as NCAA basketball. In addition, no expenses were incurred for NHL hockey rights in the prior year due to a labour dispute between the league and its players association, and thus these rights were re-instated during the year ended August 31, 2006. Also, The Score increased its rights fees for poker programming in fiscal 2006 compared to the prior year when poker programming was acquired for only part of the year.

Interest expense for the year ended August 31, 2006 was $0.4 million compared to the $0.9 million in the prior year. For the year ended August 31, 2006, interest expense includes interest on bank loans of $0.6 million (net of interest income of $0.2 million), compared to interest on bank loans of $0.8 million and interest on amounts due to related parties of $0.1 million (net of interest income of nil) for the year ended August 31, 2005. The decrease of approximately $0.5 million reflects lower borrowings of bank debt and related party debt due to improved cash flow from operations and cash proceeds from an equity issue completed in February 2006. On February 8, 2006 the Company completed the sale of 11,800,000 Class A Subordinate voting shares to the public at a price of $0.85 per share. On February 15, 2006, the underwriter exercised an option to acquire 1,770,000 Class A Subordinate Voting shares at $0.85 per share, being the price of the offering to cover over-allotments, representing an amount of 15% of total number of Class A Subordinate voting shares offered. The net proceeds of the offering amounted to $10.4 million.

Depreciation and amortization expense for the year ended August 31, 2006 was $1.2 million compared to $1.2 million in the prior year. While the combined depreciation and amortization expense for both fiscal years remained constant, depreciation expense increased to $1.0 million for the year ended August 31, 2006 compared to $0.7 million in the prior year, reflecting increased capital expenditures in the latest fiscal year at The Score for new television broadcasting equipment and television studio facilities, as well as new equipment and expenditures to develop intellectual properties for Score Mobile, Score Poker, theScore.ca and Hardcore Sports Radio. Amortization expense decreased to $0.2 million compared to $0.5 million in the prior year as a result of fully amortizing a financing fee is fiscal 2005. For the year ended August 31, 2006, fixed asset additions were approximately $2.0 million compared to $1.7 million in the prior year. The increase in fixed assets reflected increased investment in broadcast studio equipment, information technology and development of new media assets.

Income tax recovery for the year ended August 31, 2006 of $9.1 million pertains to the release of valuation allowance recorded against the future tax assets which consist primarily of non-capital loss carry forwards. In assessing the realizability of future income tax assets, management considers whether it is more likely than not that some portion or all of the future income tax assets will be realized. The ultimate realization of future income tax assets is dependent upon the generation of future taxable income before the expiry of non-capital losses and the years in which the other temporary differences are deductible. Management considers the scheduled reversals of future income tax liabilities, the character of the income tax assets and the tax planning strategies in place in making this assessment. To the extent that management believes that the realization of future income tax assets does not meet the more likely than not realization criterion, a valuation allowance is recorded against the future tax assets.

In making an assessment of whether future income tax assets are more likely than not to be realized, management regularly prepares information regarding the expected use of such assets by reference to its internal budgets and income forecasts. Based on management's estimates of the expected realization of future income tax assets, during 2006 the Company reduced the valuation allowance to reflect that it is more likely than not that certain future income tax assets will be realized.

The valuation allowance at August 31, 2006 of $17.8 million includes $17.1 million of income tax assets primarily relating to non-capital loss carry forwards of certain legal entities within the consolidated group, including the parent company Score Media Inc., PrideVision and St. Clair.

Net income for the year ended August 31, 2006 was $13.0 million, or $0.14 per share based on a weighted average 91.1 million Class A Subordinate Voting Shares and Special Voting shares outstanding compared to $2.8 million or $0.03 per share based on a weighted average 82.9 million Class A Subordinate Voting Shares and Special Voting Shares outstanding in the prior year, an increase of $10.2 million.

In addition, for the year ended August 31, 2006, net income included $0.1 million of income from discontinued operations, and for the year ended August 31, 2005, net income included $0.1 million of income from discontinued operations.

Liquidity and Capital Resources

Cash flows provided by continuing operations for the year ended August 31, 2006 were $3.5 million compared to $2.2 million provided in the prior year reflecting improvement in operating results in the current year and movements in operating working capital. Cash flows used in discontinued operations were nil, compared to cash flows provided by discontinued operations of $0.5 million in the prior year.

For fiscal 2007, the Company anticipates that cash flows provided by operations will increase compared to fiscal 2006 based on anticipated increases in both advertising and subscriber revenues with more moderate increases in operating expenses. The Company also launched several new business initiatives (Score Mobile, Score Poker) in fiscal 2006 which are expected to contribute to increased operating profitability in fiscal 2007.

Cash flows provided by financing activities for the year ended August 31, 2006 were $9.7 million compared to cash flows used in financing activities of $1.2 million in the prior year, primarily as a result of the proceeds of an issue of equity securities. On February 8, 2006 the Company completed the sale of 11,800,000 Class A Subordinate voting shares to the public at a price of $0.85 per share. On February 15, 2006, the underwriter exercised an option to acquire 1,770,000 Class A Subordinate Voting shares at $0.85 per share, being the price of the offering to cover over-allotments, representing an amount of 15% of total number of Class A Subordinate voting shares offered. The net proceeds of the offering amounted to $10.4 million.

The proceeds of the offering will be used over the next eighteen to twenty four months to (i) finance upgrades to existing studio facilities to implement "High Definition TV" broadcasting capabilities (ii) to provide funds for marketing, application development, programming and working capital to Score Poker, Score Mobile, and Hardcore Sports Radio and (iii) for general corporate purposes.

On May 26, 2005, the Company entered into a $15 million credit facility with a Canadian chartered bank. The credit facility is comprised of a $10 million five-year term loan maturing on August 31, 2010, and a $5 million revolving credit facility. The credit facility allows the Company to borrow by way of prime rate loans, bankers' acceptances or letters of guarantee. Loans and bankers' acceptances bear interest at rates that are dependent on financial ratios. The provisions of the Company's bank credit facility impose restrictions, the most significant of which are restrictions on investments, sales of assets, distributions to shareholders, restrictions on programming rights agreements and the maintenance of certain financial covenants. Financial covenants include total funded debt to EBITDA (earnings before interest, taxes, depreciation and amortization) and maximum capital expenditure amounts.

The proceeds of the loans made under this credit facility were used to retire all existing credit facilities then in existence. The Score repaid in full its revolving bank operating line of credit, then drawn at $11.5 million, with the proceeds of this new bank credit facility. In addition, the Company repaid $1.2 million, including accrued interest of $262,000 and cancelled the credit facility provided to it by Levfam Finance Inc., a company related by virtue of common control.

As at August 31, 2006, $10.0 million of the five-year term loan had been drawn. Of the $10.0 million term loan, $1.0 million has been classified as a current liability as the amount is due within 12 months. The Company was in compliance with all terms of its credit facility during the reporting periods.

The Company believes that the equity issue together with its credit facility provides it with sufficient working capital lines of credit to support its operations for the foreseeable future.

Cash flows used in investment activities for the year ended August 31, 2006 were $2.1 million compared to cash flows used in investment activities of $2.1 million in the prior year. For the year ended August 31, 2006, fixed asset additions were approximately $2.0 million compared to $1.7 million in the prior year, while additions to deferred charges for the year ended August 31, 2006 were $0.1 million compared to $0.4 million in the prior year. Fixed asset additions resulted primarily from new investment in broadcast studio equipment, information technology and development of new media technologies.

For fiscal 2007, the Company anticipates a significant capital expenditure program for new and replacement fixed assets of approximately $9.0 million. These expenditures include approximately doubling the size of The Score's operating facilities, a new high definition television studio and high definition television equipment, developing a 'street-front' presence at The Score's location, and development expenditures for Score Mobile, theScore.ca and other new initiatives. The fiscal 2007 capital expenditure program can be financed by cash flows from operations and cash and cash equivalents on hand.

Other than the credit facilities described above, the Company has no other financial instruments and thus believes that there are no price, credit or liquidity risks that it could be subject to from such instruments.

Contractual Obligations

The Company has no debt guarantees, capital leases or long-term obligations other than loans and the capital lease which are disclosed on the Consolidated Balance Sheets as at August 31, 2006, and August 31, 2005 and the Notes to thereto.

Contractual operating obligations are as follows:

-------------------------------------------------------------------------

Contractual

Obligations

(in thousands There-

of dollars) 2007 2008 2009 2010 2011 after Total

-------------------------------------------------------------------------

Operating

lease

obligations 1,761 1,472 1,074 1,121 685 1,750 7,863

-------------------------------------------------------------------------

Programming

rights

obligations 2,384 1,512 403 431 - - 4,730

-------------------------------------------------------------------------

Long-term debt

obligations 1,000 1,000 1,500 6,500 - - 10,000

-------------------------------------------------------------------------

Total 5,145 3,984 2,977 8,052 685 1,750 22,593

-------------------------------------------------------------------------

Related Party Transactions

During 2006, the Company retained legal services from a firm, one of whose partners is a director of the Company. These services were provided in the ordinary course of business and the fees for services rendered amounted to approximately $8,000 in fiscal 2006 compared to approximately $38,000 in the prior year. A second director provided consulting services for the Company during fiscal 2006 and received approximately $26,000 for such services during fiscal 2006 compared to approximately $27,000 in the prior year. The Company entered into a lease in December 2005 for a property partially owned by a director and officer of the Company. The lease ended August 31, 2006 and the aggregate rent paid in 2006 amounted to $105,000. All related party transactions have been recorded at their fair values.

Critical Accounting Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates are used in determining, but not limited to, the allowance for doubtful accounts, income tax valuation allowances, the useful lives of depreciable assets and the recoverability of fixed assets and deferred charges. In making such estimates and assumptions, management consults with employees knowledgeable in the area; gathers relevant information; where appropriate, seeks advice from qualified third parties, and, makes judgments, which in the opinion at that time represent fair, balanced and appropriate conservative estimates and assumptions. Actual results could differ from those estimates.

Adoption of New Accounting Pronouncements

Non-monetary transactions:

In 2005, the CICA issued Handbook Section 3831 Non-monetary transactions ("CICA 3831"), replacing Section 3830, Non-monetary transactions. CICA 3831 requires that an asset exchanged or transferred in a non-monetary transaction must be measured at its fair value except when: the transaction lacks commercial substance; the transaction is an exchange of a product or property held for sale in the ordinary course of business for a product or property to be sold in the same line of business to facilitate sales to customers other than the parties to the exchange; neither the fair value of the asset received nor the fair value of the asset given up is reliably measurable; or the transaction is a non-monetary non-reciprocal transfer to owners that represents a spin-off or other form of restructuring or liquidation. In these cases the transaction must be measured at the carrying value. The new requirements were effective for transactions occurring on or after January 1, 2006. This new standard did no have a material impact on the Company's consolidated financial statements.

Recent Canadian Accounting Pronouncements

Financial Instruments:

In 2005, the CICA issued Handbook Section 3855, Financial Instruments - Recognition and Measurement, Handbook Section 1530, Comprehensive Income, and Handbook Section 3865, Hedges. The new standards will be effective for interim and annual financial statements commencing in fiscal 2008. Earlier adoption is permitted. The Company is assessing the impact of these new standards.

Risks and Uncertainties

Risks Related to the Nature of the Specialty Television Industry

The specialty television industry in which the Company operates involves a substantial degree of risk. There can be no assurance of the economic success of any specialty television channel as revenues depend on audience acceptance, which cannot be accurately predicted. Audience acceptance is impacted by the specialty television service's content, reviews of critics, marketing and promotions, the quality and acceptance of other competing services, the availability of alternative forms of entertainment, leisure time activities, general economic conditions, public tastes generally and other intangible factors. The lack of audience acceptance for its specialty television channels could have an adverse impact on our business, results of operations, prospects or financial condition.

Regulatory Environment

The specialty television services industry is regulated by the Canadian Radio-television and Telecommunications Commission ("CRTC"), which grants and renews licenses. The Company's broadcasting licenses must be renewed from time to time, typically every seven years and cannot be transferred without regulatory approval. The Company's inability to renew its licenses on favourable terms, or at all, would have an adverse impact on its results of operations, prospects and financial condition. Changes in the regulations governing the specialty television industry, including decisions by regulators affecting the Company's broadcasting operations, such as the granting or renewal of licenses or the granting of additional broadcasting licenses to competitors or the introduction of new regulations by regulators, could adversely impact operating results, prospects and financial condition.

Dependence on BDU's

The Score is dependent on Broadcast Distribution Undertakings ("BDUs") (including cable, direct to home (DTH) and Multipoint Distribution System (MDS) distributors) for distribution of its specialty television services. If any of the distribution agreements are terminated and the Company is unable to secure similar agreements, there could be a significant negative impact on revenues. There could be a further negative impact on revenues if distribution agreements with BDUs are not renewed on terms at least comparable to current terms.

Programming and Production Costs

Programming costs, including program acquisitions, rights fees, production costs, and distribution costs continue to rise and may be subject to future increases. These increases or the inability to renew major programming rights agreements may adversely affect operating results.

General Economic Conditions

The Company's revenues and results of operations are and will continue to be influenced by prevailing general economic conditions. In the event of a general economic downturn or a recession, purchasers and potential purchasers of the Company's advertising inventory may substantially reduce their advertising budgets. In the event of such an economic downturn, there can be no assurance that the Company's operating results, prospects and financial condition would not be materially adversely affected.

A complete discussion of the risk factors affecting the Company's operating results can be found in the Company's Annual Information Form.

Disclosure Controls and Procedures

Based on their evaluation of the Company's disclosure controls and procedures as of the end of the period covered by this Management's Discussion and Analysis, the Chief Executive Officer and Chief Financial Officer have concluded that such controls and procedures are effective.

Outlook

Moving forward into 2007, the Company intends to continue to focus on growing its primary asset, The Score Television Network while expanding the development of related sports media properties and applications such as Hardcore Sports Radio, Score Poker, Score Mobile, theScore.ca and novel web-based initiatives.

%SEDAR: 00003035E

For further information: Patrick Michaud, Executive Vice President and CFO, (416) 977-6787 ext 206, (905) 522-0471

newswire

All trademarks and copyrighted information contained herein are the property of their respective owners.

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