Devine Entertainment Reports 3rd Quarter & Nine Month Results; Company's Reduced Losses and New Production Are Positive Signs of Recovery.

Business Editors

TORONTO--(BUSINESS WIRE)--Dec. 1, 2003

Devine Entertainment Corporation today reported financial results for the three and nine month periods ended September 30, 2003 (all amounts in Canadian dollars). Revenues for the three months ended September 30, 2003 from the Company's library of films decreased by $18,888 or approximately 10% to $184,985 as compared to $203,873 for the same period in 2002. The Company's net loss for the quarter was reduced by 48% to $143,721, as compared to $274,408 for the same period in 2002, or $0.01 per share as compared to $0.02 per share for the same quarter in 2002. Nine month revenues from the Company's library of films were down 33% to $490,420 as compared to the $732,880 recorded for the same period in 2002. Net loss for the first nine months of 2003 was $394,413, or $0.03 a share, as compared to net loss of $592,414, or $0.04 per share, for the first nine months of 2002, reflecting a $198,001 or a 33% reduction in losses for the period as compared to 2002.

Operating expenses for the third quarter of 2003 were reduced by more than 50% to $149,962 as compared to $318,077 for the same period in 2002. Operating expenses for the first nine months of 2003 were reduced by approximately 50% to $382,944 as compared with $769,428 for the same period in 2002. The Company's reduced operating expenses reflect the continued cost cutting of the Company's general expenses and distribution costs over the past nine months and the Company's renewed focus on production activity in the third quarter with the commencement of principal photography on the Company's first feature film, entitled "Bailey". The Company's consolidated cash position at September 30, 2003 increased to $118,741 as compared to $34,969 at December 31, 2002 also reflecting the renewed production activity on "Bailey". Financing for the $11.4 million dollar production was completed subsequent to the end of the quarter.

Management noted that the decrease in revenues reflect the strength of the Canadian dollar against the US dollar in 2003 as well as the absence of a broadcast sale for the Company's library in the first nine months of 2003. As the international broadcast markets continue to improve, management expects that new broadcast licenses of its library will be completed in the near future, and the Company expects that video and DVD sales, which have been remained consistently strong in North America, will increase with the launch of new DVD product in the fourth quarter or 2003.

With the commencement of new production on the Company's family feature film "Bailey" in September 2003 and the subsequently completed $11.4 million financing for the production and the related revenues that will be recognized when the film is delivered in the first half of 2004, the Company anticipates significant improvement in the Company's financial position.

Five-time Emmy Award-winning Devine Entertainment Corporation is a developer and producer of high-quality children's and family films designed for worldwide motion picture, television and cable markets and international home video markets.

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.

                   DEVINE ENTERTAINMENT CORPORATION

                 CONSOLIDATED STATEMENT OF OPERATIONS

                  Unaudited - Prepared by Management

               FOR THE 9 MONTH PERIOD ENDED SEPTEMBER 30

                   Three months ended           Nine months ended
                        Sept. 30                     Sept. 30
                    2003          2002          2003          2002

REVENUE        $   184,985    $   203,873   $   490,420   $   732,880

EXPENSES
Operating          149,962       318,077        382,944       769,428
Amortization
- film, television
 programs and
 recordings        132,335       110,568        335,631       424,684
- equipment          1,638         2,088          5,277         6,969
Interest            44,771        47,548        142,738       113,713

                   328,706       478,281        866,840     1,314,794

LOSS before
 income taxes     (143,721)     (274,408)      (376,420)     (581,914)

Income taxes         3,500             -         18,243        10,500

NET LOSS for
 the period   $   (147,221) $   (274,408) $    (394,413) $   (592,414)

DEFICIT,
 beginning
 of period     (11,491,997)   (9,942,514)   (11,244,805)   (9,624,508)

DEFICIT, end
 of period     (11,639,218)  (10,216,922)   (11,639,218)  (10,216,922)

BASIC AND FULLY
 DILUTED LOSS
 per common share
 (Note 7)     $      (0.01) $      (0.02) $       (0.03) $      (0.04)

THE WEIGHTED
 AVERAGE SHARES -
 BASIC          14,261,838    14,261,838     14,261,838    13,808,189