For Release: August 29, 2005

OMT Reports Financial Results for Second Quarter 2005

Winnipeg, Manitoba, August 29, 2005 -- OMT Inc. (TSXV: OMT) announced today the Company’s
consolidated results for the period ended June 30, 2005.

Second Quarter Financial Highlights

• Completed one of the largest deployment quarters for iMediaTouch to new radio station customers including the signing of new target multi-station radio station groups.
• Signed a four-year exclusive partnership agreement with the Canadian Broadcasting Corporation’s Galaxie music division for content delivery by Intertain’s background music and messaging service.
• Completed a content licensing agreement for Intertain’s music previewing service with EMI MusicCanada, which consists of 70 music labels including Capitol Music, Virgin Music and BlueNote.
• Signed a large contract valued at over $800,000 CDN for iMediaTouch to AZCAR USA Inc as part ofits contract for the American Armed Forces Radio and Television Service (AFRTS) Digital RadioFacility at the Defense Media Center at March Air Force Base in CA.

Description of Business
OMT Inc. (TSXV: OMT) is a digital media content and technology solution provider to retailers of media
products and radio broadcasters. Intertain Media, the digital entertainment division, offers media previewing systems to major retailers in North America such as Best Buy as well as background music and messaging services. The iMediaTouch division delivers radio automation systems with over 1,200 domestic and international clients such as ABC Radio Networks, Canadian Broadcasting Corporation, Corus Entertainment, DMX/AEI, Music Choice, Clear Channel, and CBS Infinity Broadcasting. OMT's broadcasting, multi-media technology, and content are heard daily by over 50 Million people worldwide through radio,satellite, television and Internet delivered broadcasts. To learn more about the Company, its products and services, visit its website at www.omt.net.

Management’s Discussion and Analysis
Certain statements made in the following Management’s Discussion and Analysis contain forward-lookingstatements including, but not limited to, statements concerning possible or assumed future results ofoperations of the Company. Forward-looking statements represent the Company’s intentions, plans,expectations and beliefs, and are not guarantees of future performance. Such forward-looking statementsrepresent our current views based on information as at the date of this report. They involve risks,uncertainties and assumptions and the Company’s actual results could differ, which in some cases may be material, from those anticipated in these forward-looking statements. Unless otherwise required byapplicable securities law, we disclaim any intention or obligation to publicly update or revise this information,whether as a result of new information, future events or otherwise. The Company cautions investors not toplace undue reliance upon forward-looking statements.

Results of Operations
This review contains Management’s discussion of the Company’s operational results and financial condition, and should be read in conjunction with the consolidated financial statements for the previous quarter ended March 31, 2005 and the associated notes and the audited consolidated financial statements for the year ended December 31, 2004.

The unaudited consolidated financial statements provide a comparison of the three months ended June 30, 2005 to the three months ended June 30, 2004. These interim financial statements have not been reviewed by the company’s auditors.

Sales for the quarter ended June 30, 2005 show an increase of $195,000, or 22.9% over the same quarter last year. The increase is largely attributed to hardware sales, which increased from $309,000 in 2004 and $244,000 in the first quarter of 2005 to $477,000 this quarter. These hardware sales were related to the increased deployments of iMediaTouch to new radio station clients and Intertain’s retail previewing service to existing clients. Although sales are higher, due to the lower margins associated with hardware, the overall increase in gross profit was only $39,000 (6.8%) over the same quarter last year and $17,000 (2.7%) lower than the first quarter this year. Software and service sales increased slightly from $540,000 to $567,000 (5.0%) over the same quarter last year. Year to date, gross profit was $73,000 (6.2%) higher this year, as compared to last year.

Operating expenses at $635,000 were $65,000 (11.4%) higher than in the same period last year and
$76,000 (13.6%) higher than the first quarter of this year. The change is largely related to a significant
increase in audit and consulting fees this quarter to support various past and current business development initiatives, as well as additional sales and management personnel. Research and development expenses declined 24.9% over the previous year, which are a result of the maturity and reliability levels of the company’s technologies and improved efficiencies.

Other expenses increased by $67,000 (46.8%) as a result of debt service requirements on the $4,000,000 of convertible debt raised in December 2004. Payments toward this debt are for interest only, and no principle payments are required until maturity in December 2008.

The loss before Interest, Taxes, Depreciation and Amortization (EBITDA) was $25,000. Net loss after all costs and expenses was $236,000, or less than one cent per share. OMT Inc.

Liquidity
OMT had a working capital balance of $228,499 as of June 30, 2005. This is a decrease of $117,826 since December 31, 2004. The current ratio of current assets to current liabilities is 1.22:1 as compared to 1.25:1 at December 31, 2004 and 0.5:1 at December 31, 2003. The improvement is a result of the financing that closed in December 2004. The company has no borrowings on the operating credit line of $600,000 as of June 30. During the second quarter, the cash position was reduced by $77,000. Funds were used for operations of $13,000, capital expense of $7,000, and payments of long-term debt of $56,000.

For additional information, contact:

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

INDUSTRY: MUL - Multimedia
SUBJECT: BFC - BUSINESS CONTRACTS
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