Devine Entertainment Concludes Business Relationships With CIC Productions and WSi-Interactive.

Business Editors

TORONTO--(BUSINESS WIRE)--Oct. 27, 2000

Devine Entertainment Corporation (TSE:DVN) today announced the termination of two business agreements. Devine Entertainment and CIC Productions have agreed to terminate their relationship for distribution of "The Not-So-Grimm Brothers" family television series. Devine is now pursuing new distribution and broadcast licenses for the series and expects to continue production in 2001. Earnings from the series will not be recognized in 2000.

Devine Entertainment's letter of intent with WSi-Interactive to develop and market Devine's interactive website, www.devinetime.com, has been terminated due to a lack of significant progress on developmental obligations. Devine is now exploring other opportunities to develop and market content for the site and is confident about the quality of the site and its value. This change will not impact Devine's earnings this year. The value of www.devinetime.com is not currently reflected on the Company's balance sheet.

Although the Company is not currently in production, management is positive about new projects in development and the strong jump in video sales this year. More videos were sold in the first six months of this year than in all of the previous year. Also, Steeplechase Entertainment, which began distributing the videos in the U.S. last month, is poised to exceed its 18-month performance target with US$100,000 in gross billings attained in less than two months.

"The success of our video sales reinforces the value of our film library over the long term and shows its acceptance in a highly competitive marketplace. We are optimistic that this trend of rapidly increasing video sales will continue as we establish a strong customer base among recognized U.S. retailers," said Company president David Devine.

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. This press release may contain forward-looking statements relating to the future performance of Devine Entertainment Corporation. Forward-looking statements, specifically those concerning future performance and the achievement of operating profitability are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include the Company's limited operating history and fluctuations in revenues; market acceptance of the Company's products and services; competition within the film and entertainment industry and the introduction of new entrants and/or products in the Company's markets; adverse changes in governmental regulations and policies affecting the film and entertainment industry; product development risks and risks of technological change; the risk of unanticipated expenses; and other risks and uncertainties all as described in the disclosure documents filed with securities regulatory authorities in accordance with applicable securities laws.