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Devine Entertainment Expands into Online Film Sales Marketplace Under New Digital Distribution Agreement With NetMovies Inc.

Posted on: Friday, 19 October 2007, 18:00 CDT

Devine Entertainment Corporation (OTCBB:DVNNF), seeking to capitalize on the burgeoning global demand for high quality film and television content, today announced a far-reaching expansion for the future distribution of its acclaimed core library of family films under a new non-exclusive agreement with NetMovies Inc., a Boston-based company that will make Devine's film content available for sale and download directly on demand to consumers via the Internet.

Under the license agreement, NetMovies will distribute Devine's award-winning entertainment library of historical family films as NetMovies rolls out its proprietary secure Downstreaming Network online distribution technology. Devine's film and television content library includes the Company's acclaimed franchises The Artists' Specials, The Inventors' Specials and The Composers' Specials.

NetMovies Inc. was founded in 2001 and is 34% owned by home entertainment giant Blockbuster, Inc. NetMovies founder John Fanning is also Napster Inc. Founding Chairman and CEO.

"It is now clear that the future of movies, television and videos will be on the internet," said Mr. Fanning, Chairman and Chief Technology Officer of NetMovies. "This presents a phenomenal opportunity for the creators of unique specialized content to reach the massive untapped demand for specialized product. As we build these new distribution channels it is of primary importance that we provide the public with first quality programming and entertainment, which is why we are delighted and proud to carry Devine's award-winning content. We are very pleased to welcome the Devine Entertainment library into Netmovies.com."

NetMovies expects to launch its network and make Devine Entertainment films available to its online customer base early in 2008.

"We are excited to be working with a company with the superior technology, powerful strategic partnerships and visionary management team of NetMovies," said David Devine, President and CEO of Devine Entertainment. "John Fanning changed the way music reaches its worldwide audience with Napster and now he is poised to make online distribution of films and television a commercial success. We believe on-line distribution networks are the future of film and television distribution and that future is now."

Devine recently announced the formation of its Digital Content Group to spearhead the Company's initiatives to expand sales and distribution via emerging channels and technologies, including Internet-based distribution, video-on-demand (VOD), wireless and mobile devices, and other technologies. Digital and other fast-growing new technologies are expected to become one of the dominant distribution forces in the multibillion-dollar global entertainment industry.

NetMovies is an online entertainment network providing producers and owners of video content a secure, highly functional and efficient digital distribution outlet. NetMovies' proprietary Downstreaming Network builds on the technology model pioneered at Napster, creating a regulated peering system offering high-speed downloads and secure but flexible digital rights management (DRM). NetMovies' video content is licensed from studios or created by independent artists, introduced into a centrally managed and protected network, and distributed to and among paying subscribers, answering the demand from the market for an easy to use, low cost, and authorized service.

Revenue and Earnings Forecast

Devine recently announced revenue and earnings guidance for the first three quarters of calendar year 2007, projecting significant revenue growth of CAN $5.5 million, representing a 1600% increase over the $363,529 for the comparable period in 2006. The Company also projected earnings in excess of $1 million for the first three quarters of 2007, a significant increase over the $529,614 loss reported for the same period in 2006.

About Devine Entertainment

Devine Entertainment Corporation develops, creates, and produces award-winning television programming and feature films for worldwide distribution across multiple TV broadcast networks, cable and satellite networks, DVD and Internet markets. Specializing in cultural and educational programming as well as prime-time drama and comedy entertainment programming, the Company's titles have garnered more than 120 international film and television industry awards, including five Emmy and five Gemini Awards. The Company partners with leading international distributors, broadcasters and co-producers, such as Sony BMG, Rogers Media and The Carrere Group of France, to produce and distribute its award-winning film and television titles.

Among Devine's critically-acclaimed productions are its cultural and educational film series on history's landmark Composers', Inventors' and Artists', which have been broadcast in more than 50 countries. The Company continues to expand its proprietary library of high-quality film and television content. Among its general-audience primetime programming is the acclaimed one-hour mystery series, "Across the River to Motor City," delivered to broadcasters worldwide in 2007. Headquartered in Toronto, the Company's common shares trade on the NASD OTCBB market in the U.S. under the symbol DVNNF. The Company's corporate website is www.devine-ent.com.

For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/devine.

To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/devine/quote.html.

To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/devine/factsheet.html.

Forward-Looking Statements

This press release may contain forward-looking statements relating to the future performance of Devine Entertainment Corporation. Forward-looking statements, specifically those concerning future performance and the achievement of operating profitability are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include the market acceptance of the Company's products and services; competition within the film and entertainment industry and the introduction of new entrants and/or products in the Company's markets; adverse changes in governmental regulations and policies affecting the film and entertainment industry; product development risks and risks of technological change; the risk of unanticipated expenses; and other risks and uncertainties all as described in the disclosure documents filed with securities regulatory authorities in accordance with applicable securities laws. Readers are cautioned that the foregoing list of factors is not exhaustive. Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on information available to it on the date such forward-looking statements are made, no assurances can be given as to future results, levels of activity and achievements. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

Source: Business Wire

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