ETPI Announces Results for the Quarter Ending Dec. 31, 2002.

Entertainment Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--Feb. 18, 2003

Entertainment Technologies & Programs Inc. (OTCBB:ETPI) announced today that it has filed its quarterly report on Form 10-QSB for the quarter ended Dec. 31, 2002.

For the three months ended Dec. 31, 2002 versus the three months ended Dec. 31, 2001 (restated to reflect discontinued operations):

-- Revenues increased approximately $177,090, or approximately 24%, from a restated $734,504 to $911,594 primarily due to an increase in military sales in our Performance Sound & Light Inc. ("PS&L") subsidiary during the quarter ended Dec. 31, 2002;

-- Gross margin decreased from 44.7% to 42.9% primarily due to purchase discount programs implemented by PS&L in order to encourage increased sales to our military customers;

-- General and administrative expenses increased by $21,014 from a restated $268,582 for the quarter ended Dec. 31, 2001 to $289,596 for the quarter ended Dec. 31, 2002 primarily due to an increase in litigation expenses related to our continued legal disputes with and as a result of actions of prior management;

-- Interest expense decreased by $26,588, or approximately 26%, from a restated $100,682 to $74,094 for the quarter ended Dec. 31, 2002. This decrease is primarily a result of the elimination of extension fees recorded as interest on our trust obligation during the quarter ended Dec. 31, 2001;

-- Net income increased $209,627, from a loss of $(199,104) to positive $10,523 for Dec. 31, 2002.

According to Chief Executive Officer George C. Woods, "We are pleased with our positive quarterly results, which are a credit to the efforts of our management team and employees. Though we continue to devote a substantial amount of our human and financial capital towards resolving certain litigation issues, our operational outlook is improving. We believe that we will resolve all of these non-operational issues this year and remain dedicated to do so. ETPI has a unique and profitable business model which should flourish as we continue to improve our operations and resolve outstanding issues."

Core Operations

NiteLife Military Entertainment Inc. For the comparable quarters ended Dec. 31, 2002 and 2001, NiteLife's revenues decreased approximately $5,639, or 1.1%, primarily due to the non-renewal of a service contract with one of our military base customers. Furthermore, due to lower revenues and increased labor costs, NiteLife's net income decreased approximately $13,836, from $84,983 to $71,147, and its net income margin decreased from 16.2% to 13.7%.

Typically, NiteLife is required to capitalize each new entertainment facility it contracts with a military customer to manage. On average, each new contract venue requires approximately $17,500 in capitalized costs. Due to the continued capital constraints suffered by ETPI as a whole, NiteLife's ability to enter into management contracts with new military customers has been hampered. However, as operations for ETPI as a whole continue to improve and as the financial burden of extraordinary litigation costs are reduced in time, management anticipates that NiteLife will be able to begin growing its revenues by entering into new entertainment facilities management contracts with additional military customers. However, at this time, management cannot predict with any certainty when it will be able to do so.

Performance Sound & Light. For the comparable quarters ended Dec. 31, 2002 and 2001, PS&L's revenues increased $182,729, or 87.4%, from $209,174 to $391,903, primarily due to a focus marketing approach emphasizing our custom products and installations. In addition, its net income increased $37,068 from $13,473 to $50,541, which represents an increase net income margin from 6.4% to 12.9%.

Recently PS&L updated its military Web site and received approval from the Armed Forces Non-Appropriated Fund's Purchasing Office for implementation and linking of its new Web site with AFNAF's military base intranet. PS&L recently completed and distributed an updated military catalogue of it traditional product lines as well as new product lines. Management believes these efforts will continue to provide PS&L with substantive growth in sales opportunities, as well as lead to additional opportunities for NiteLife contracts.

General Discussion and Prospective Information

As indicated in the pro forma information provided in our most recent annual report on Form 10-K for the fiscal year ended Sept. 30, 2002 and filed with the Securities and Exchange Commission in January of this year, our financial obligations to the ETPI 2000 Trust during fiscal year 2002 represented a substantial suppressant to our financial results for the year. We are pleased that this financial burden has been lifted and will continue to strive to restore value to our shareholders and the beneficiaries of the Trust. While we continue to experience liquidity issues due to our continuing litigation expenses for matters outside the normal course of business and substantial financing fees we have incurred in financing our operations in light of our auditor's going concern opinion that has been in place since fiscal year 2000, we anticipate that, without the financial burden of the Trust going forward, we will continue to show improvement in our operating results throughout fiscal year 2003. Our management and board of directors are encouraged by the improvements made in fiscal 2002 and in the first quarter of fiscal 2003 and continue to remain committed to protecting our shareholders' interests and restoring shareholder value.

About Entertainment Technologies & Programs

Entertainment Technologies & Programs Inc. (www.etpinc.net) is a full-service supplier of entertainment management services and products to the United States Military, through its two Non-Appropriated Funds ("AFNAF") contracts. Through its wholly owned subsidiary, NiteLife Military Entertainment Inc., the company manages over 100 entertainment systems on approximately 36 U.S. military bases worldwide. In addition, the Company, through its wholly owned subsidiary, Performance Sound & Light Inc., sells security video equipment and professional sound and lighting equipment to its military and civilian customers.

This release contains statements that constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical information or statements of current condition and are generally preceded by the words such as "plans," "expects," "believes," "anticipates" or "intends." These statements appear in a number of places in this release and include statements concerning the parties' intent, belief or current expectations regarding future events and trends affecting the parties' financial condition or results of operations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors. Some of these factors are described in the Form SB-2 registration statement which was filed by ETPI with the Securities and Exchange Commission on March 19, 2002. Although management of the parties believe that their expectations reflected in the forward-looking statements are reasonable based on information currently available to them, they cannot assure you that the expectations will prove to have been correct. Accordingly, you should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of the date of this release. Except to the extent required by law, the parties undertake no obligation to revise or update any of them to reflect events or circumstances after the date of this release, or to reflect new information or the occurrence of unanticipated events.