CINAR Moves Quickly and Gives Immediate Attention to Allegations.

MONTREAL--(BUSINESS WIRE)--Oct. 18, 1999--

CINAR Corporation (Nasdaq:CINR)(ME:CIF.A.)(TSE:CIF.A.)(ME:CIF.B.)(TSE:CIF.B.) announces that the company has moved to deal with allegations contained in certain media reports concerning practices with respect to Canadian content rules related to television and film productions.

The allegations in the media appear to pertain to episodes produced several years ago and have no relation to the current operations and activities of the company. Based upon its review to date, CINAR believes that such allegations will not have any material adverse impact on the financial position or results of the company.

Nonetheless, the Board of directors has given a special mandate to members of the Audit Committee of the Board, composed only of outside directors, to review the various issues associated with the allegations. The Committee has been instructed to report its findings and recommendations to the Board of directors at the earliest possible date. The Board reaffirms its intent to cooperate with all competent authorities.

Finally, Ms. Charest, the Chairman of the Board and co-chief executive officer, emphasizes that management will continue to pursue the company's plans for its growth and development. "We are extremely proud of our last 15 years of production and of the more than 1,500 half-hours of high quality non-violent children programs in our library. Today, we are recognized as one of the world's leaders in this market. In the course of achieving that status, we have been instrumental in the growth of the Canadian television industry, and more particularly to the development of the Montreal creative talent."

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. 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.