Devine Entertainment Reports Second Quarter Results: Company Anticipates Significant Second Half Improvement.

Business Editors

TORONTO--(BUSINESS WIRE)--Sept. 2, 2003

Devine Entertainment Corporation (TSE: DVN) today reported a net loss for the three months ended June 30, 2003 of $147,767, (all amounts in Canadian dollars) or $0.01 a share, as compared to a loss of $220,437, or $0.02 per share, for the same quarter in 2002.

Revenues from video sales of the Company's library decreased slightly by $26,503 from $166,400 for the second quarter of 2002 to $139,897 for the second quarter of 2003. The Company's overall revenues decreased by $70,972 to $139,897 as compared to $210,869 for the same period in 2002. Operating expenses for the second quarter of 2003 were $106,973 as compared to $277,314 for the same period in 2002, a decrease of 62%, evidence of cost cutting measures implemented by the company.

Based on its recently announced financing commitments in excess of (cdn) $10 million for its feature film "Bailey" and the historically stronger third and fourth quarter sales from the Company's film library, Devine anticipates significant improvement over the second half of 2003 and well into 2004.

In response to the recently announced suspension of trading on the TSX senior exchange, to be effective September 26, 2003, the Company also announced that it will pursue all options available to ensure the continuity of the trading of its securities. This includes remedial activities to maintain its status on the TSX, or the move to trading on the TSX Venture exchange as well as continuing to trade on the NASDAQ OTC under the symbol DVNNF. The notification from the TSX was not unexpected by the Company and management does not foresee any continuing negative effect on its new production activities and the recent turnaround in its business activities.

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, motion picture, cable and international home video markets.

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