CINAR Attended Hearing With Nasdaq.

Business Editors

MONTREAL--(BUSINESS WIRE)--July 20, 2000

CINAR Corporation (NASDAQ:CINRE) (TSE:CIF.A..)(TSE:CIF.B.)

[pilcrow (paragraph sign)] While Pursuing Efforts to Have Financial Statements Ready for

Audit, Production and Distribution Operations Continue

CINAR Corporation (NASDAQ:CINRE) (TSE:CIF.A..)(TSE:CIF.B.) announced today that it met with a panel of the Nasdaq Stock Market last week, in Washington DC, to explain the delay in filing its annual report and financial statements for the period ended November 30, 1999 and quarterly reports for the current fiscal year. The Company was given until today, July 20, 2000 to provide any supplemental information. Discussions with Nasdaq are ongoing.

The Company also announced that it continues to work towards the completion of its financial statements for the year ended November 30, 1999. Once completed, they will be provided to the Company's external auditors, Ernst & Young LLP, for completion of their audit. As announced in the news release dated July 5, 2000, the Company is negotiating the terms of an agreement with an investment banker. The Company also announced that an action has been filed against it by the former owners of its subsidiary Carson-Dellosa Publishing to recover alleged losses related to a Stock Purchase Agreement concluded with CINAR in connection with CINAR's acquisition of Carson-Dellosa in 1997. The complaint contains allegations similar to those made in the complaints previously filed against the Company and should not affect Carson-Dellosa's day-to-day operations, nor does it affect the subsidiary's numerous projects in support of CINAR's ongoing business.

CINAR will continue to issue semi-monthly status updates by way of news releases, as it has since April 20, 2000.

Production and distribution operations continue

Meanwhile, post-production is nearing completion on the first ten episodes of the new half-hour series CAILLOU. Delivery to PBS will begin on August 1st, as planned. The series, a blend of animation and live action featuring the popular preschooler Caillou, premieres on the daily PBS KIDS Ready to Learn schedule of children's programming on September 4, Labor Day. The series will air twice daily, Monday to Friday, as well as on Saturdays and Sundays.

Arthur's Perfect Christmas, an hour-long primetime special, has been delivered to PBS and will premiere in November 2000. After four hit seasons on PBS, and an audience of more than 15 million viewers weekly in the US, ARTHUR, the series, continues to enjoy a solid reputation as America's most popular children's series. The half-hour animated series remains the most-watched children's program on all of television among children 2 to 11 years old*. The fifth season of ARTHUR premieres on PBS September 25, 2000, as production continues on episodes 76-85.

Deliveries also began on two new animated series, The Twins and Upstairs Downstairs Bears. The Twins, a co-production with Flextech Rights Limited, is based on the best-selling Harper Collins book by author/illustrator John Wallace. This children's series was commissioned by ITV in the UK and recently presold to France's TF1, as well as YTV and Societe Radio Canada in Canada. The stop-motion series Upstairs Downstairs Bears, co-produced with first-time partner Scottish Television and second-time partner Egmont Imagination, is based on the best-selling books by Carol Lawson and was also commissioned by ITV.

Also in production are episodes 14 to 26 of the animated series A Miss Mallard Mystery. Co-produced with the prestigious Shanghai Animation Film Studio, it is scheduled to air in China on Shanghai TV, and on the English and French services of TELETOON in Canada.

Canada's YTV has purchased another 13 episodes of Mona The Vampire, which are currently in production. The series, co-produced with France's Alphanim, has quickly become a hit on YTV since its first broadcast last September and has also been sold in over 50 other countries.

CINAR Corporation is an integrated entertainment and education company involved in the development, production, post-production and worldwide distribution of non-violent, quality programming and educational products for children and families. CINAR's web site can be found at www.cinar.com

This release may include information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 (U.S.). Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. Forward-looking statements in this document include, but are not necessarily limited to, those relating to the company's present and future operations and the results of the company's reviews. Actual results or conditions may differ from those anticipated by these and other forward-looking statements. Such forward-looking statements are subject to a number of known or unknown risks and uncertainties.

* Source: Includes all regularly scheduled daytime children's programs from broadcast, cable or syndicated sources. For PBS, NTI Pocketpieces for October, November, and December. For broadcast, cable, and syndication Nielsen Galaxy Explorer October 1-December 31, 1999.