Devine Entertainment Revises Production Schedule for "The Not-So-Grimm Brothers" Series.

Business Editors

TORONTO--(BUSINESS WIRE)--June 9, 2000

Plans to secure long-term production financing moving forward

Devine Entertainment Corporation (TSE:DVN) today reported that the pre-production schedule for its new series The Not-So-Grimm Brothers has been temporarily postponed by six weeks due to a delay in financing and payments by one of the distributors of the series. The change in the schedule will affect the start dates of principal photography on the new six part series. The delay is caused by both standard operational issues involved in television production financing in the current market and by the process of finalizing cash flow for the production. Management is actively pursuing additional avenues to assist with the financing of the production.

"Our financing has taken longer than originally planned for a number of reasons. Primarily, difficult market conditions have hampered entertainment stocks and production financing since the Cinar incident," commented David Devine, President and C.E.O.

Management believes that the delay can be made up within its production schedule and that six episodes of the series can be delivered before the end of fiscal 2000. If the photography of the series is delayed more than six weeks, it may change the number of episodes that can be delivered in 2000. Given that the Company recognizes revenues when films are delivered, a delay in the completion and delivery of films in 2000 may have an effect on the Company's earnings and revenues for the year. Management believes that it is premature to forecast any earnings shortfall at this time.

"Even if we deliver three films in 2000 and three films early in 2001, growing video and broadcast revenues from our existing film library could result in significant growth in revenues and earnings in 2000," said David Devine.

In relation to ongoing financing activities, management also announced that important steps are being taken to secure long-term production financing. Devine is actively pursuing dedicated multi-year production financing that will allow the Company to complete a production program that will see its film library grow dramatically in the next three to five years. The Company expects to announce completion of this production financing in 2000.

The Company is also pleased to announce that principals, David Devine, President and Richard Mozer, C.F.O. have agreed to make a private placement in the Company for a combined total of approximately Cdn$300,000 or approximately 500,000 shares at Cdn$0.65. The principals' investment will provide the Company with working capital while longer-term production financing is finalized. The private placement is subject to Board and TSE approval and is expected to close within 90 days.

Devine Entertainment Corporation is one of the world's finest producers of high-quality, live-action children's and family films for worldwide television and cable, international home video and internet applications. Devine Entertainment's films are based on historical and timeless stories that educate and inspire self-esteem in young people The Company's films have received 12 Emmy Nominations and 5 Emmy Awards, as well as honours from the American Library Association, KidsFirst! Coalition for Quality Children's Media, Parents' Choice and the prestigious Humanitas prize. The Company's award-winning website, www.devinetime.com, features profiles of 100 inventors, a trivia game, a flight lab and an e-commerce store.

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.