CINAR Pursuing Efforts to Have Management Financial Statements Ready for Audit Within Two Weeks.

Business Editors

MONTREAL--(BUSINESS WIRE)--June 5, 2000

CINAR Corporation (Nasdaq:CINR) (TSE:CIF.A.) (TSE:CIF.B.) announces that it has been negotiating with Globe-X Management the terms of a settlement relating to the previously disclosed unauthorized investment of US$122 million, of which US$76 million remains outstanding.

There is no assurance as to when, if at all, a negotiated settlement may be arrived at. US$10 million of this amount matured on May 31, 2000 and Globe-X advised the Company it required five business days from that date to process transactions for administrative purposes. The Company expects to receive these funds within that delay.

The Company reaffirms its continued efforts to meet its objective to prepare and file its audited financial statements and related continuous disclosure documents. As previously announced, the Company's auditors, Ernst & Young LLP, have expressed concerns about the Company's ability to meet its publicly-stated tentative objective of June 30, 2000 for the preparation and filing of financial statements. The concerns expressed by its auditors relate in substance to the Company's ability to complete satisfactorily the reviews it has initiated of its affairs and to ascertain the financial effect thereof, as well as the preparation of its financial records for the purposes of an audit on a timely basis. While the Company shares these concerns and will monitor closely the feasibility of the June 30th objective, it continues nonetheless to exert every effort to have management financial statements ready for audit by Ernst & Young LLP within the next two weeks.

In addition to the above, the Company continues to diligently pursue the following actions, as outlined in news releases issued on April 20, May 4 and May 19:

* PricewaterhouseCoopers LLP, retained by the Company in March 2000,
  continues to provide financial advisory services and to assist in
  preparing the Company's financial records.

* It is working diligently to complete the reviews of its affairs,
  including with respect to tax credit irregularities, related party
  transactions and unauthorised transactions. The Company continues to
  discuss matters relating to tax credits (including those relating to
  scriptwriting) with the appropriate taxation and certification
  authorities with a view to addressing issues which are identified
  and ascertaining the consequences thereof. The completion of these
  discussions is dependent on the Company's reviews themselves being
  substantially completed.

* It is in the continuing process of responding to information
  requests from relevant agencies and authorities, including those
  required so as to reestablish the Company's eligibility to funding
  from those agencies which administer production funds. The
  completion of these responses is also dependent on the Company's
  reviews themselves being substantially completed.

The Company also announces that, henceforth, Jeff Gerstein will assume full-time responsibility for tax issues within CINAR, as Vice President, Taxation, and that he has decided to relinquish his position as Chief Financial Officer. He will continue to report to the Chief Executive Officer. Mr. Gerstein's expertise had been in the tax area in his career in public accounting prior to joining CINAR. The Company will be seeking a new CFO as soon as practicable: in the meantime, PricewaterhouseCoopers LLP will continue to assist management.

The Company has also received a claim by a former officer, with respect to stock options which said officer had wished to exercise in February, 2000. The Company intends to defend itself vigorously with respect to such claim.

The Company will continue to issue semi-monthly status updates by way of news releases.

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 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.