Beverly Hills Film Studios Re-States Status of Legal Action; Company Prevailed in Initial Court Hearing Against Ex-Executive BJ Davis.

LOS ANGELES -- In an effort to help in clarifying the company's position regarding the status of their action against former executive BJ Davis, especially with regard to a press release issued earlier today that, among other things, contained significant amounts of false and misleading information and challenged the legitimacy of the current president and CEO of Beverly Hills Film Studios Inc., the company is re-stating its two announcements issued on Oct. 26, 2004, as follows:

Today the company's officers, directors and principal management of Beverly Hills Film Studios Inc. (OTC: BVHJ) announced that the company has filed a major civil action in San Diego against BJ Davis (aka Beau Davis, aka Bobby Joe Davis), the recently terminated president of the company.

Robert Braner, speaking on behalf of the company's board of directors and the company's management, said, "This legal action against Mr. Davis in no way impedes or restricts Beverly Hills Film Studios' operational status. The company is in solid shape, its projects currently under way and in post-production remain on track, and the company's management continues to execute on all projects currently in the pipeline."

The nature of the action against Davis includes that Davis has personally looted the company by paying himself and his wife well over $1,000,000, and taking the company through a 100:1 reverse and further issuing himself 100,000,000 shares of stock.

The action further states that Davis has attempted to block all production on the company's current film projects, and has made physical threats against the company's personnel, and has attempted to misappropriate the company's film assets for himself.

The company's board stated, "Mr. Davis has continued to attempt to disrupt and interfere with the operations of the company by contacting employees, independent contractors and creditors. These actions by Mr. Davis are unfounded and will not be tolerated by the company."

The company will demand that Davis returns all stock improperly issued, and returns to the company all monies paid by Davis to himself and others not approved by the company, its management and its board of directors.

Beverly Hills Film Studios Inc. (OTC: BVHJ) announced that the company has prevailed at a hearing held Oct. 26, 2004, with regard to a complaint presented at Los Angeles County Superior Court.

Management made the following brief statement upon exiting the courthouse this morning:

BJ Davis filed a lawsuit against Beverly Hills Film Studios Inc. and certain officers, directors and investors, demanding a TRO (temporary restraining order) be awarded, effectively granting him control of the company.

The Honorable Dzintra Janavs heard the application for the TRO and denied it in all respects, both procedurally and substantively.

The parties and the court have agreed to a subsequent hearing on Nov. 23, 2004.

Beverly Hills Film Studios continues with its aggressive efforts on behalf of its shareholders to recover the 100 million shares of stock and the $1.3M misappropriated by the former president of the corporation.

Company's Web site: www.beverlyhillsfilmstudios.com