SOURCE: Grand Entertainment & Music, Inc.

October 25, 2006 13:15 ET

Grand Entertainment & Music, Inc. Announces Letter of Intent to Purchase Independent Record Label

MONTREAL -- (MARKET WIRE) -- October 25, 2006 -- Grand Entertainment & Music, Inc. (PINKSHEETS: GMSC) announces that it has signed a non-binding letter of intent (LOI) for the acquisition of an independent U.S. record label.

Grand Entertainment signed a letter of intent to purchase 50% of the label in a cash, non-share transaction. Both companies will be in a period of due diligence over the next 30 days, and hope to have the deal finalized before the holidays.

The acquisition of this record label will bring additional assets to Grand Entertainment. Over the last decade, this independent label has signed over a half dozen award-winning artists, and built a 500+ song catalogue. In addition, the label owns a fully operating studio with over one hundred thousand dollars of up-to-date studio equipment.

President Fred Berlin stated, "I am excited about this business move. I have always believed that acquisitions are a viable path to company growth. The addition of these new artists and vast song catalogues will be just another step in that direction, and I feel that both companies have a lot to gain from working together. More details will be forthcoming over the next few weeks."

About Grand Entertainment & Music, Inc.

Based in Montreal, PQ, and incorporated in November 1998, the Company is an independent music company that produces, promotes, markets and controls the copyrights on music recordings in multiple formats. Additionally, the Company's multi-million dollar studios produce voice-overs and sound tracks for commercials and film, which are used on the radio, television and in theatres. Cherry Studios has produced thousands of records in its studios and has to its credit a total of 23 gold and platinum records. GEM, a pioneer in the Internet distribution and digital download field, currently owns and controls all its content and distribution rights. Having both content and distribution rights will enable the company to fulfill its mission of becoming a leading consolidator of quality music catalogues as well as a premier production, recording, publishing and Internet distribution company in the music industry.

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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