Devine Entertainment Completes Year End Financings for CDN$1,985,800.

Business Editors

TORONTO--(BUSINESS WIRE)--Jan. 3, 2001

Devine Entertainment Corporation (TSE:DVN) today announced that it has completed a series of year-end financings totaling CDN$1,985,800. The proceeds of the financings are earmarked for investment in the development of the Company's marketing and distribution activities, new multi-faceted projects including TV/Film and new media programs, and general working capital. All amounts herewith are in Canadian dollars.

The Company closed a private placement of 550,000 units on December 22, 2000. Each unit consisted of $1.00 principal amount of 10.5% convertible subordinated debentures, series 1 (the "Debentures") and one common share purchase warrant (the "Warrant"), for gross proceeds of $550,000. The debentures bear interest at a rate of 10.5% per annum, mature on December 31, 2005 and are convertible at the option of the holder to acquire common shares of the Company at a rate of $0.50 principal amount of debenture per common share. Each warrant entitles the holder to acquire one common share at a purchase price of $0.75 at any time on or before December 31, 2001, at a price of $1.00 at any time between January 1, 2002 and December 31, 2002, at a price of $1.25 at any time between January 1, 2003 and December 31, 2003, at a price of $1.50 at any time between January 1, 2004 and December 31, 2004 and at a price of $1.75 between January 1, 2005 and December 31, 2005.

The Company also announced that the holders of redeemable convertible subordinated debentures in the amount of $835,800 originally issued in December 1995 have agreed to extend their debentures to mature on December 31, 2002 under terms similar to the new private placement. The debentures will now bear interest at a rate of 10.5% per annum, and are convertible at the option of the holder to acquire common shares of the Company at a rate of $0.50 principal amount of debenture per common share. The holders will receive one common share purchase warrant for each dollar value of their debenture. Each warrant will entitle the holder to acquire one common share at a purchase price of $0.75 at any time on or before December 31, 2001, at a price of $1.00 at any time between January 1, 2002 and December 31, 2002, and at a price of $1.25 at any time between January 1, 2003 and December 31, 2003.

In addition, Devine Entertainment completed a special warrants offering for $600,000 effective November 24, 2000. Overall, Devine Entertainment raised $1,150,000 as well as extended the repayment of a further $835,800 for an additional two years.

"This infusion of capital will assist us in developing our marketing and distribution efforts. We are pleased that our investors see the value of the Company and its brand of quality family films." said David Devine, President and CEO.

Five-time Emmy Award-winning Devine Entertainment Corporation is a developer and producer of high quality children's and family films for worldwide television and cable markets and international home video markets. The Company's interactive website www.devinetime.com was a YAHOO! Canada "Pick of the Week" and won the Entertainment category at the Atlantic Digital Media Festival.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.