SOURCE: Grand Entertainment & Music, Inc.

November 09, 2006 07:00 ET

Grand Entertainment & Music, Inc. Finalizes Deal With Lost City Records

MONTREAL -- (MARKET WIRE) -- November 9, 2006 -- Grand Entertainment & Music, Inc. (PINKSHEETS: GMSC) announces that it has finalized the signed agreement with Lost City Records.

Last month, Grand Entertainment signed a letter of intent to purchase 50% of Lost City Records in a non-share, cash transaction. Over the last few weeks, executives and consultants worked together on the terms of the acquisition. Upon completion of the terms of agreement, attorneys finished drafting all necessary contracts, and the deal was signed and finalized this week. The agreed price is $500,000, and the payment terms of the acquisition are very favorable for Grand Entertainment. Despite being a non-share transaction, only a small amount of money is due up front, and GEM has up to twelve months to pay off the remaining balance. The company feels that incoming revenue will be ample enough to satisfy the remaining payment.

"This is a monumental day for our company," stated President Fred Berlin. "This new partnership means we are now a part of up-and-coming stars like Big Lou, K.I., and WundaBarz. I am extremely pleased with this business move. This acquisition is an essential step in the growth of our company, and the addition of Lost City's artists, studios, and reputations can only further our success."

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 addition to these assets, the company will 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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