Devine Entertainment Reports 3rd Quarter & Nine Month Results; Improved Sales & Pre-Production Indicate Recovery.

Business Editors

TORONTO--(BUSINESS WIRE)--Dec. 2, 2002

Devine Entertainment Corporation (TSX:DVN) today reported financial results for the three and nine month periods ended September 30, 2002 (all amounts in Canadian dollars).

Revenues from the Company's library of films for the three months ended September 30, 2002 increased by 13% to $203,873 as compared to $180,470 for the same period in 2001. The Company reported a net loss for the quarter of $274,408, or $0.02 per share, as compared to a loss of $6,447,637, or a loss of $0.50 per share for the 2001 third quarter. The 2001 third quarter included a write down of investment in films of $6,084,808. Nine month revenues from the Company's library of films were $732,880 as compared to the $766,570 recorded for the same period in 2001. Net loss for the first nine months of 2002 was $592,414, or $0.04 per share, as compared to net loss of $6,640,181, or $0.53 per share for the first nine months of 2001.

The Company's operating expenses in the quarter included a charge of $160,000 for losses resulting from the insolvency of Steeplechase Entertainment, one of the Company's sub-distributors in the United States. While this loss negatively impacted the Company's cash flow for the quarter, the Company has now brought all of Steeplechase's accounts in-house and both sales and profit margins from these accounts are increasing. President and CEO, David Devine, noted "The combination of bringing more high-margin sales in-house and the new agreements announced this quarter with Beyond International and GrandView Castle for certain foreign territories should result in increased sales in fiscal 2003."

The Company has also recently begun pre-production casting and scouting for its first feature film Puppy Love and expects to finalize the production financing for the film in the fourth quarter 2002. Principal photography on Puppy Love is scheduled for February 2003. Puppy Love is an $8.5 million production that is expected to contribute significantly to the Company's revenue and cash flow in fiscal 2003.

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

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. Full financial information and notes relating to this press release are available by contacting [e-mail]

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

                   DEVINE ENTERTAINMENT CORPORATION
      CONSOLIDATED STATEMENT OF OPERATIONS (In Canadian Dollars)

                  Unaudited - Prepared by Management
               FOR THE 9 MONTH PERIOD ENDED SEPTEMBER 30

                            Three months ended        Nine months ended
                                  Sept. 30                 Sept. 30
                           2002          2001       2002          2001

REVENUE                 $  203,873    $  180,470  $  732,880   $  766,570

EXPENSES
Operating                  318,077       162,355     769,428      636,192
Amortization
-film, television programs
 & recordings              110,568       314,346     424,684      588,759
-equipment                   2,088         2,858       6,969        8,968
Interest                    47,572        63,740     113,753      109,947
Interest Income                (24)            -         (40)           -

                           478,281       543,299   1,314,794    1,313,866

LOSS before the
following:                (274,408)     (362,829)   (581,914)    (547,296)

Write-down of investment in
film, television programs
& recordings                     -    (6,084,808)          -   (6,084,808)

LOSS before income taxes  (274,408)   (6,447,637)   (581,914)  (6,632,104)

Income Taxes                     -             -      10,500        8,077

NET (LOSS) for the
period                  $ (274,408)  $(6,447,637) $ (592,414) $(6,640,181)

DEFICIT, beginning of
period                  (9,942,514)   (2,374,609) (9,624,508)  (2,182,065)

DEFICIT, end of period (10,216,922)   (8,822,246) (10,216,922) (8,822,246)

BASIC AND FULLY
DILUTED LOSS
per common share        $    (0.02)  $     (0.50) $    (0.04) $     (0.53)

WEIGHTED AVERAGE
SHARES - BASIC          14,261,838    12,884,915  13,808,189   12,584,915