SOURCE: Headliners Entertainment Group Inc.

November 16, 2005 09:53 ET

Headliners Takes Giant Step Towards Transformation

MONTCLAIR, NJ -- (MARKET WIRE) -- November 16, 2005 -- Headliners Entertainment Group, Inc (OTC BB: HLEG), released its 3rd quarter financial results today. The figures dramatically show the results of management's decision to transform the core business of Headliners from comedy clubs to dance-oriented venues.

Revenues for the quarter rose from $721,000 to $3,170,000, an increase of over 400%. For the nine month period ending September 30, revenues rose from $912,000 in 2004 to $6,953,000 in 2005, an increase over 700%. The cost to accomplish this change in direction and this spurt in revenue have all been absorbed and the company is now poised for greater sales growth and bottom line profitability.

The plan and execution of this transformation can best be described in the words of Ed Rodriguez, Headliners Chairman, CEO and President, He said: "In addition to our three remaining comedy clubs in Montclair, NJ, Palisades Center in Nyack, NY, and in the Hilton Hotel in Cherry Hill, NJ, we have added five dance clubs in Cincinnati, Ohio, Louisville, Kentucky, Jackson, Mississippi, Kansas City, Missouri, and Omaha, Nebraska. We are very close to concluding contracts on two additional locations, and my senior management team is devoting a lot of time to searching for more potential venues. Additionally we have had a great response to our comedy clips from XM, Audible and Microsoft's Windows Media platform. We have been in discussions with other revenue generating platforms for the future of the library.

"Headliners 4th Quarter results should show the benefits of this major change in direction. There has been no stock based compensation paid, nor any stock issued for consulting services so far in the 4th Quarter, nor is any planned or anticipated. I sincerely believe that Headliners has found its niche in the entertainment business community, and we plan to exploit it to the fullest, for the benefit of its loyal shareholders."

About Headliners Entertainment Group Inc.:

Headliners is an entertainment management company that owns and operates 3 Comedy Clubs and 5 Dance Clubs. Headliner's Entertainment owns a library of more than 200 hours of stand up comedy routines performed by today's top entertainers, and it has also starting taping a new Rascals Comedy Hour. Headliners has also entered into contracts with:

- MSN Video Downloads;
- TVNet wired and wireless digital video download service;
- Windows Media;
- XM Satellite Radio; XM Comedy;
- SmartVideo Technologies, a mobile entertainment service provider
  that offers fully synched, full-motion audio and video programs
  to viewers with mobile electronic devices.
Forward-Looking Statements. This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate,'' "believe,'' "expect,'' "future,'' "intend,'' "plan'' and similar expressions to identify forward-looking statements. Forward-looking statements include, without limitation, our ability to increase income streams, to grow revenue and earnings, and to obtain additional Indian gaming and other projects. These statements are only predictions and are subject to certain risks, uncertainties and assumptions, which are identified and described in the Company's public filings with the Securities and Exchange Commission.

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