CINAR Corporation Announces That Underwriters Exercised the Over-Allotment Option for 1,050,000 Limited Voting Shares.

MONTREAL--(BUSINESS WIRE)--March 23, 1999--CINAR(NASDAQ:CINRF) (ME:CIF.A.) (TSE:CIF.A.) (ME:CIF.B.) (TSE:CIF.B.) CINAR Corporation (Nasdaq: CINRF) today announced that the underwriters exercised in full their over-allotment option for an additional 1,050,000 Limited Voting Shares at US$20 per share, all of which were offered by CINAR. The additional net proceeds to the Company were US$ 19,971,000. On March 9, 1999, CINAR closed its public offering in the United States and Canada of 7,000,000 Limited Voting Shares at a price of US$20 per share. Of the shares offered, 6,500,000 shares were sold by CINAR and 500,000 shares were sold by corporations controlled by the principal shareholders of the Company. In the aggregate, the Company received net proceeds of US$ 143,601,000, before subtracting expenses of the offering.

The lead manager for the offering was ING Baring Furman Selz LLC, and the co-managers were BT Alex. Brown Incorporated, Salomon Smith Barney Inc., Griffiths McBurney & Partners and CIBC Wood Gundy Securities Inc.

Copies of the prospectus relating to the offering may be obtained from ING Baring Furman Selz, LLC, 55 East 52nd Street, 38th Floor, New York, NY 10055, Tel: [phone]; BT Alex. Brown Incorporated, 1 South Street, Baltimore, Maryland 21202, Tel: [phone]; Salomon Smith Barney Inc., 388 Greenwich Street, New York, NY 10013, Tel: [phone]; and Griffiths McBurney & Partners, 145 King Street West, Suite 1100, Toronto, ON M5H 1J8 Canada, Tel: [phone], CIBC Wood Gundy Securities Inc., 600 de Maisonneuve Ouest, Suite 3050, Montreal (Quebec), H3A 3J2, Tel: [phone].

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 original productions include: the Emmy Award winning ARTHUR(TM) (with WGBH Boston), The Busy World of Richard Scarry(TM), Are You Afraid of the Dark?(TM), Wimzie's House(TM) and Lassie(TM), as well as mini-series and family films, which are seen in over 150 countries. CINAR Education Inc., CINAR's educational division, promotes children's learning by developing, producing, distributing, and marketing high-quality supplemental educational products worldwide. Through CINAR's diverse programming, its licensing and merchandising of entertainment related products and its array of supplemental educational products, the Company intends to appeal to children worldwide, throughout their entire day.

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.). Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the Company's Securities and Exchange Commission filings.