SOURCE: Magic Lantern Group

April 18, 2005 16:40 ET

Magic Lantern Group Clarifies Late Filing of Form 10-K

NEW YORK, NY -- (MARKET WIRE) -- April 18, 2005 -- Magic Lantern Group, Inc. (AMEX: GML) ("MLG"), a leading international distributor of educational content and third-generation, digital content and e-delivery solutions, announced that subsequent to today's release regarding its late filing of Form 10-K, the Company issues the following clarification:

The Company's independent auditors, Schwartz Levitsky Feldman LLP, were only retained on March 1, 2005.

MLG reports that there were significant time constraints placed on management and its auditors Schwartz Levitsky Feldman LLP, precluding the timely completion of the audit. MLG management and its auditors continue to work diligently to resolve all outstanding financial statements and related matters, which are nearing completion. MLG expects to hold an Audit Committee meeting this week to review the filing. Upon acceptable approval by the committee, MLG plans to file its Form 10-K immediately with the SEC.

About Magic Lantern Group, Inc.

Magic Lantern Group, Inc. operates several strategic subsidiaries and divisions, including the global distribution of videos and DVD's from more than 300 world-renowned producers, its core business for nearly 30 years. Key divisions are Sonoptic Technologies, a pioneer in commercial digital video encoding and online digital video utility and leading provider of third-generation digital technology solutions and the recently launched Magic Vision Digital Media, Inc., a provider of digital on-demand/on-line desktop delivery for sports entertainment, health care, human resource, and corporate governance and compliance industries. For more information, visit: http://www.magiclanterngroup.com.

Any statements in this Press Release about future expectations, plans and prospects for the Company constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "could," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the company's current beliefs and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors, including those risks identified in our Annual Report on Form 10-K, which could cause the company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. Revenue projections contained in this release are subject to the successful execution of e-commerce websites. The company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this press release including such forward-looking statements.

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