SOURCE: Grand Entertainment & Music, Inc.

December 06, 2007 08:00 ET

Grand Entertainment & Music, Inc. Addresses Shareholder Concerns

MONTREAL--(Marketwire - December 6, 2007) - Grand Entertainment & Music, Inc. (PINKSHEETS: GMSC) would like to take this opportunity to address shareholder concerns in regard to recent statements and accusations on the internet.

At the present time, there are disagreements on the terms and conditions of Big Lou's artist contract. To clarify the Company's current position, Grand Entertainment still owns fifty percent of Lost City Records. If LCR artist Big Lou decides to sign with another label, Grand would still benefit due to its part ownership of Lost City Records.

Management is also aware of the ongoing slanderous and false statements being made by Big Lou on his MySpace bulletins. The artist has made no effort to deny his role in these postings, and GEM is not taking these remarks lightly. It is indisputable that Grand Entertainment owns a stake of Lost City Records. GEM has been directly funding LCR for over a year now, and has maintained accurate accounting records. It is management's top priority to protect its interest in the label; as well as, Grand's overall image. The Company and its attorneys are discussing and reviewing all options to handle the aforementioned priorities.

"We here at Grand take our Company's reputation very seriously," stated Fred Berlin, President. "Recent statements and accusations have directly attacked Grand Entertainment, its integrity, and its shareholders. I wish to assure all shareholders that Grand is dealing with the matter, and is in the process of being advised on how to handle the situation properly and expeditiously."

About Grand Entertainment & Music, Inc.

Based in Montreal, Canada and incorporated in November 1998, the Company is an independent music entity that produces, promotes, markets and controls the copyrights on music recordings in multiple formats. Additionally, The Company's multi-million dollar studio, Cherry Studios, has produced voice-overs and sound tracks for commercials and film. In addition, Cherry Studios has also produced thousands of recordings and has to its credit a total of 23 gold and platinum albums. GEM has recently found success in the reggaeton market with its signature artist, Qbanito. Qbanito's debut album has already generated a #1 hit in Canada and is currently being marketed by Universal Music in Europe. Grand Entertainment also controls exclusive rights to vast catalogues of previously unreleased recordings from Cuban music archives. In November 2006, Grand Entertainment acquired half of Lost City Records, adding a half dozen award-winning artists, including rising rap star Big Lou, and a 500+ song catalogue to Grand's existing assets. In addition, the company will continue to focus on growth through acquisitions over the next twelve months in an effort to reach its mission of becoming a premier production, recording, publishing, and internet distribution company.

Safe Harbor Statement

This release contains forward-looking statements with respect to the results of operations and business of Grand Entertainment & Music (GEM) Inc., which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.

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