BFS Entertainment & Multimedia Limited Announces Second Quarter Results.

RICHMOND HILL, Ontario -- BFS Entertainment & Multimedia Limited of Richmond Hill, (TSX:BFS) Ontario announces its unaudited consolidated financial and operating results for the second quarter ended October 30, 2004.

Sales for the first six months were $4,197,902 compared to $3,875,390 last year. Operating earnings were $300,238 compared to $703,136 last year. Net loss for the first six months was $35,681 ($0.00 per share) compared to net earnings of 144,774 ($0.02 per share) for the same period last year.

Sales for the second quarter were $2,389,010 compared to $2,411,670 during the same quarter last year. Operating earnings were $182,325 compared to $478,894 last year. Net earnings for the second quarter were $6,310 ($0.00 per share) compared to 176,561 ($0.02 per share) in the same quarter last year.

Denis B.E. Donnelly, President and CEO stated, "The strength of the Canadian dollar against the U.S. dollar continues to have a negative impact on our current results and historical comparisons. We are pleased to be able to maintain our gross margins and expect a return to profitability when we realise the benefits of our continued investment in our mail order subsidiary."

FINANCIAL HIGHLIGHTS
(unaudited)           Twenty-six   Twenty-six    Thirteen    Thirteen
                     Weeks Ended  Weeks Ended Weeks Ended Weeks Ended
                        Oct. 30,      Nov. 1,    Oct. 30,     Nov. 1,
                            2004         2003        2004        2003
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Sales                $ 4,197,902  $ 3,875,390 $ 2,389,010 $ 2,411,670
Operating earnings
 (EBITDA)1               300,238      703,136     182,325     478,894
Earnings (loss)
 before income
 taxes 1                (52,264)      163,536      10,916     277,094
Income taxes            (16,583)       18,762       4,606     100,533
Net earnings (loss)     (35,681)      144,774       6,310     176,561

Basic and diluted
 earnings (loss)
 per share                (0.00)         0.02        0.00        0.02

BFS uses operating earnings (EBITDA) to assess the operating performance of its business. Operating earnings (EBITDA) represent earnings before interest, income taxes and amortization. Operating earnings (EBITDA) do not have a standardized meaning prescribed by generally accepted accounting principles and therefore, are unlikely to be comparable to operating earnings (EBITDA) as reported by other publicly traded companies.

BFS Entertainment & Multimedia Limited manufactures, markets and distributes under the BFS Video and American Home Treasures video labels, a wide range of entertainment home videos and DVD's for resale to retail and catalogues throughout North America.

(SEC Rule 12g exemption #82-4245)

BFS Entertainment & Multimedia Limited (TSX VENTURE:BFS)