SOURCE: Grand Entertainment & Music, Inc.

May 11, 2006 08:45 ET

Grand Entertainment & Music, Inc. Announces Newly Signed Artist Kali Being Presented to Major European Record Companies for Licensing Agreement

MONTREAL -- (MARKET WIRE) -- May 11, 2006 -- Grand Entertainment & Music, Inc. (OTC: GMSC) announced today that the company is currently in talks with major European record companies for a possible licensing deal for the first single from their recently signed artist, Kali. Kali is a reggaeton/reggae/pop artist that was signed to GEM music last month.

The first single by Kali entitled "Abracadabra" was delivered to major record companies in Europe this week. The Licensing deal currently being discussed is similar to the company's arrangement with AZ/Universal Music France for the Qbanito project. These types of agreements minimize GEM's upfront production costs, while maximizing the exposure and revenue potential for the artist. It is GEM's goal to have two more artists signed and singles completely recorded, mixed, and delivered to major record companies in Europe and North America by the end of the year. GEM expects an answer on this single in the next two weeks.

Fred Berlin, President, stated, "I am very happy to be making this announcement. I think it is imperative that all shareholders and the investing public realize that the company is diligently working on many exciting ventures. While we are extremely happy with the success of Qbanito, we are not sitting back and resting on the potential of this one project. It is fully our intention to deliver two additional artists to huge industry leaders within this year." Berlin went on to say, "The company is extremely excited with the Kali project and its potential. Not only is he one of the very best reggae artists I have heard in my twenty plus years as a record executive, he is also extremely marketable with his blend of reggaeton/reggae/pop. I firmly believe that Kali has the potential to surpass the initial success we have seen with Qbanito. I look forward to announcing more details about this project and others in next week's 'Letter from the President.'"

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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