CINAR Provides Shareholders with Unaudited Consolidated Financial Information.

Business Editors

MONTREAL--(BUSINESS WIRE)--March 30, 2001

CINAR Corporation today released unaudited consolidated financial information to shareholders.

The unaudited financial information includes results for the fiscal years ended November 30, 2000 and November 30, 1999.

The Company has been unable to issue audited financial statements for the years ended November 30, 2000 and November 30, 1999 and audited restatements for the years ended November 30, 1998 and 1997. In order to be audited, the financial statements of the Company must be the subject of representations from management as to certain matters, including whether any illegal acts or related party transactions exist and, if so, have been adequately reflected. New management of the Company has determined that it cannot currently provide the required assurances with respect to financial periods prior to its appointment. However, new management may possibly be in a position to do so after completion of the 2001 financial year. The auditors of the Company have resigned, as previously disclosed.

Readers are cautioned that the financial information, including the restated information provided by the Company including that summarized below, may not fairly and accurately present the financial position of the Company or the results of its operations and cash flows for the years ended November 30, 2000 and November 30, 1999, in accordance with Generally Accepted Accounting Principles (GAAP). The Company believes that the financial information provided herein has been prepared on the basis of the best information presently available to the Company. However, neither the Company nor any of its directors, officers, employees, agents or advisors makes any representations regarding the accuracy or completeness of such financial information.

HIGHLIGHTS OF THE FINANCIAL INFORMATION

Revenues for the year ended November 30, 2000 were $153.1 million, a decrease of 11% over the $172.6 million of revenues earned by the Company during fiscal 1999. The decrease is mainly a result of lower revenues in the Company's Entertainment Division.

The consolidated cost of sales was $84.3 million compared to $111.4 million in 1999 representing a decrease of 24%. The decrease is largely attributable to a foreign exchange gain of $4.8 million in fiscal 2000 as opposed to a foreign exchange loss of $13.7 million realized in fiscal 1999 mainly due to fluctuations in the U.S. dollar. Furthermore, the Company acquired certain rights with respect to a film property, which it expensed in fiscal 1999. No such rights were acquired in fiscal 2000.

Selling, general and administrative expenses rose to $59.1 million in fiscal 2000, an increase of 11% over the $53.4 million incurred in fiscal 1999. The increase is attributable to larger marketing related expenses in our Education Division to support the continued growth of our product lines.

For the fiscal year ended November 30, 2000, the Company suffered a loss of $55.8 million essentially due to a number of unusual items that adversely affected its earnings for the period, resulting in the Company taking a non-recurring charge of $53.3 million. The unusual items are briefly described below:

1.  On October 29, 1999, the Company acquired shares of Lightspan
    Inc., a San Diego-based company, specializing in curriculum-based
    educational software, for cash consideration of $18.5 million. On
    February 15, 2000, CINAR made a further investment in shares of
    Lightspan for cash consideration of $15.7 million. As at November
    2000, the Company's investment had an aggregate market value of
    $3.3 million. The impairment in value of the investment is not
    considered to be temporary and management has recorded a non-cash
    charge of $30.9 million to write down the investment to its net
    realizable value;

2.  Professional fees in the amount of $14 million were incurred
    related to issues surrounding the Company, which have been
    discussed in earlier press releases;

3.  Interest and penalties in the amount of $7.4 million were incurred
    pursuant to the tax settlements entered into with both the federal
    and provincial governments;

4.  During fiscal 1999, the Company reserved for amounts not yet
    received from Globe-X Management Limited ("Globe-X") as at the
    date of issue of the November 30, 1999 financial information
    totaling $63 million. Subsequent to this date, the Company has
    recovered certain amounts from Globe-X related to amounts
    previously reserved for. As a result, the Company has realized a
    recovery of $2.4 million against such previous provisions;

5.  A reserve in the amount of $2.7 million was established for
    transactions with related parties;

6.  The Company has taken a non-cash charge of $649,000 to write down
    its 50% shareholding in SMEC, an animation studio located in
    China, to its estimated net realizable value.

During fiscal 2000, the Company delivered 226 half-hours of original programming. As at November 30, 2000, the Company's library contains 171 titles comprising 2,074 half-hours of programming.

Detailed financial data and accompanying notes related to the unaudited financial information, which is the subject of this news release, are available on the Company's web site and will be sent to shareholders during the week of April 2, 2001.

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 is 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. 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.