Beverly Hills Film Studios Reaches Settlement.

LOS ANGELES -- Beverly Hills Film Studios Inc. (OTC:BVHJ) and the company's founder, producer/director, BJ "Beau" Davis, announced today that both parties have mutually agreed to the terms of a settlement resolving their respective lawsuits against each other.

Davis will remain on the company's board of directors as well as to serve in a position that is to be determined by BVHJ President Kimberley Kates, as the two sides rally together to bolster the company's film production.

Beverly Hills Film Studios and Davis are currently coordinating their efforts to ensure all assets of the company have a clear chain of title for delivery to buyers and distributors. Kates stated, "The company and our management team are pleased that these issues and misunderstandings are now behind us. With everyone's interest in mind, and in particular our company's shareholders', we look forward to Mr. Davis' crucial activities in support of the film, 'Forget About It' and are happy that he will be spearheading the completion of this project with the company."

A forensic examination of the Beverly Hills Film Studios operational costs and expenditures assisted in resolving mutual misunderstandings and confirmed that no irregularities were noted by either side. Primarily, the company found no improprieties in any payments made to Julia Davis as the screenwriter of the feature film, 'Forget About It.' Davis was paid within accordance with industry standards.

In an act of good faith, and to show a sign of solidarity with the company and shareholders, Davis has generously agreed to transfer back to the corporation 100,000,000 shares of BVHJ common stock which will be cancelled. With this action, it revises the total issued and outstanding share count to approximately 21.7 million shares.

On an operational front, the much anticipated release of the feature films "Forget About It" and "Dirty Love" have recently received special attention from a variety of distributors. Kates and Davis have projected very positive box office receipts for both films for Beverly Hills Film Studios and look forward to a stellar year ahead of original production for the company.

For information about the company and its services, please visit www.beverlyhillsfilmstudios.com

Safe Harbor Statement under the 1995 Private Securities Litigation Reform Act: Statements contained in this document which are not historical fact are forward-looking statements based upon management's current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements.