SOURCE: Grand Entertainment & Music, Inc.

November 29, 2006 07:00 ET

Grand Entertainment & Music, Inc. Announces Completion of Share Retirements

MONTREAL -- (MARKET WIRE) -- November 29, 2006 -- Grand Entertainment & Music, Inc. (PINKSHEETS: GMSC) announces that it has completed the retirement of over 100 million outstanding shares.

In corporate press releases dated October 26th and November 2nd, Grand Entertainment announced that it would be retiring shares back into treasury. The company is pleased to announce that all paperwork is finalized, and the overall outstanding share count has officially been reduced to 319,667,293. This is approximately a 25% reduction, completed in a month's time. Grand Entertainment will continue to negotiate with shareholders in order to further reduce the outstanding share count over the upcoming months.

President Fred Berlin stated, "We set a goal a month ago to make a substantial reduction in the outstanding share count, and I am happy to report that we met this objective. The reduction of the outstanding share count, along with the acquisition of Lost City Records, will allow us to maintain our commitment to increase shareholder value. I look forward to exploring similar avenues in the year to come, and I fully expect 2007 to be our brightest year yet."

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 50% 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.

Contact Information