NeuLion has entered into an agreement to acquire Interactive Netcasting Systems. Under the terms of the transaction, which is structured as an acquisition of the outstanding shares of INSINC by the Company, shareholders of INSINC will receive 6 million common shares of the Company, CDN $2,500,000 in cash, 1 million common share purchase warrants to acquire common shares at USD $1.35 and 500,000 common share purchase warrants to acquire common shares at USD $1.80. Both series of warrants are exercisable for a period of 2 years following closing.

INSINC is based in Burnaby, British Columbia and has 20 employees. INSINC recorded audited revenue of CDN $5.6 million, EBITDA of $.4 million and net income of $.3 million in the year ended December 31, 2008. For the six months ended June 30, 2009 unaudited revenue was $2.9 million, EBITDA was $.2 million and net income was $.2 million.

INSINC offers a range of software tools for broadcasting video content over the Internet (IPTV). Its largest clients are in the area of sports including the Western Hockey League (WHL), Ontario Hockey League (OHL), Central Hockey League (CHL), British Columbia Hockey League (BCHL), Central Canadian Hockey League (CCHL), Alberta Junior Hockey League (AJHL), and Central Junior Hockey League (CJHL). When combined with NeuLion clients such as the National Hockey League (NHL) and the American Hockey League (AHL), the Company will have an unmatched presence in the delivery of online video experiences for the North American hockey world.

INSINC's other sports clients include the Canadian Football League (CFL) and when combined with NeuLion clients the National Football League (NFL) and the approximately 175 US colleges, schools and conferences for which NeuLion provides online broadcasting of sports programming, the combined Company will have an unmatched presence in the delivery of online video experiences for the North American sports world.

INSINC also provides its services to government and entertainment broadcasting sectors with clients including Business News Network (BNN), CTV News Channel, Rogers Sportsnet, TVG Networks, The Canadian Press, the Canadian Ministry of Justice, the BC Ministry of Education, and the Legislative Assemblies of British Columbia and Newfoundland and Labrador among others.

The transaction will be subject, among other things, to shareholder approval on behalf of INSINC, court approval and approval by the Toronto Stock Exchange of the listing of the common shares of the Company issued in the transaction. The transaction is expected to close on or about November 1, 2009. INSINC retained Alexander Capital Group Inc. and Parklea Capital Inc. as financial advisors to assist in this transaction.