SOURCE: Grand Entertainment & Music, Inc.

October 26, 2006 09:45 ET

Grand Entertainment & Music, Inc. Announces Share Retirement

MONTREAL -- (MARKET WIRE) -- October 26, 2006 -- Grand Entertainment & Music, Inc. (PINKSHEETS: GMSC) is pleased to announce that it has entered into several securities retirement agreements with company officers, directors, and consultants.

Grand Entertainment is finalizing the agreements and instructions to the transfer agent this week. Barring any unforeseen events, these shares should be cancelled and returned back into treasury by the end of next week. These agreements will retire approximately 43,233,334 shares, and will reduce the total outstanding share count by more than 10%. The company is continuing to meet with other shareholders and trying to work out similar agreements in an effort to reduce the outstanding share count as much as possible.

President, Fred Berlin, stated, "As we announced earlier this week, I met with several key players last weekend and discussed future corporate strategy for Grand Entertainment. We are all committed to increasing shareholder value, and the retirement of shares is one of the best ways to accomplish this goal." Berlin went on to say, "This reduction is a great start, but it is by no means the end of these actions. We were forced to issue more stock than we originally intended in our effort to ensure proper funding to grow our company. This was unfortunately necessary at the time; however, we are now making it up to our shareholder partners. We believe with our ongoing efforts we will be able to reduce the outstanding shares by a larger percentage in the upcoming weeks. As always, we will keep the investing public advised of these decisions."

About Grand Entertainment & Music, Inc.

Based in Montreal 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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