Chalk Media Corp. Announces Second Quarter 2008 Financial Results

  Chalk Media Corp. (TSX VENTURE: CKM) today announced its unaudited consolidated financial results for the three and six month periods ended June 30, 2008.

Significant Events:

- Continued transition to higher margin software revenue, while eliminating lower margin custom content revenues.

- Signed reseller agreement with UK-based Airpoint Limited.

- Signed new agreements with a large luxury hotel company and a leading consumer electronics retailer.

- Won three awards for Mobile chalkboard(TM) at RIM's BlackBerry® Enterprise Symposium, from CIO Magazine and two leading industry blogs.

- Announced availability of business skills courses for the BlackBerry in partnership with performance improvement company MindLeaders.

- Appointed Divesh Sisodraker, currently CEO of TheJobMagnet Interactive Inc. and formerly Executive Vice President and CFO of Taleo Corporation and President and CEO of Pivotal Corporation, to the Board of Directors and the Audit Committee to replace Jim Speros.

Chalk continues to transition to its Mobile chalkboard(TM) software and earned revenues of $474,765 for the three months ended June 30, 2008, compared to $669,336 for the same period in 2007. Chalk earned revenues of $182,924 for software and $274,985 for services for the three months ended June 30, 2008 and $212,297 and $419,817, respectively for the same period in 2007. The main reason for the decrease was our move away from content production including in-flight video production to focus on our software products.

The net loss for the three months ended June 30, 2008 was $2,929,547, or $0.02 per common share, compared to a net loss of $2,559,301, or $0.04 per common share, for the same period in 2007. The increase in the net loss was due to lower revenues and higher research and development expenses.

Selected Financial Data (in $'000's, except per share numbers):

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                         Three Months ended               Six Months ended
                                    June 30,                       June 30,
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                             2008      2007                 2008      2007
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Revenue                    $  475    $  669               $  899    $1,360
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Gross margin               $  (34)   $    1               $  (35)   $  137
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Operating loss            ($2,910)  ($2,401)             ($5,140)  ($4,457)
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Net income / (loss)       ($2,930)  ($2,559)             ($5,130)  ($4,738)
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Earnings / (loss)
 per share                ($ 0.02)  ( $0.04)             ($ 0.03)  ($ 0.07)
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This press release should be read in conjunction with Chalk's unaudited consolidated financial statements for the three and six month period ended June 30, 2008, as well as its management's discussion and analysis ("MD&A") dated August 29, 2008 available at www.sedar.com.

About Chalk Media Corp.

Chalk's mobile content deployment system, Mobile chalkboard(TM), allows multimedia content to be created, securely pushed and tracked on BlackBerry® smartphones. Our software and content help organizations communicate with their employees, business partners and customers. Additional information is available at www.chalk.com.

The BlackBerry® and RIM families of related marks, images and symbols are the exclusive properties and trademarks of RIM. RIM assumes no liability and makes no representation, warranty or guarantee in relation to third party products or services.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Chalk to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the speculative nature of the software industry, which is affected by numerous factors beyond Chalk's control; the existence of present and possible future government regulation; the significant and increasing competition that exists in the software industry; and risks associated with early stage companies such as Chalk, including uncertainty of revenues, markets and profitability and the need to raise additional funding as well as those factors discussed under the heading "Risk Factors" in Chalk's annual MD&A dated April 25, 2008.

Although Chalk has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Chalk does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on Chalk Media Corp. is available at www.sedar.com.

To view additional Chalk press releases, please visit: www.chalk.com/About/NewsRelease.asp

The TSX Venture Exchange has not reviewed the contents of this release and is not responsible for its accuracy.

Contacts: Chalk Media Corp. Kris Sutherland Executive Vice President [phone] Email: [e-mail] Website: www.chalk.com