ETPI Announces Substantially Improved Results For The 2nd Quarter.

Entertainment Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--May 16, 2003

Entertainment Technologies & Programs Inc. (OTCBB:ETPI), announced today that it has filed its quarterly report on Form 10-QSB for the quarter ended March 31, 2003.

The company experienced many significant events during the quarter such as a substantial increase in period-to-period comparable sales at Performance Sound & Light, and final resolution of all remaining contingent liabilities associated with the ETPI 2000 Trust. According to President and Chief Executive Officer, George C. Woods, "Sales in NiteLife were down compared to last quarter and the same quarter last year, and sales in Performance Sound & Light were slightly down from last quarter primarily as a result of troop deployments to the Middle East during the Iraq conflict. When the troops are not on the military bases, the bases do not utilize our services quite as much. Nevertheless, we are seeing an increase in activity returning to pre-deployment levels, which should get NiteLife back to its normal levels later this year. With regards to PS&L, even though the second quarter is historically its slowest quarter of the year and during that period, the military's attention was focused on the war efforts, PS&L still experienced its second highest quarterly sales in many years. Even better, the third and fourth quarters, respectively, are on track to equal or exceed the first and second quarter sales results."

Financial highlights for the three-months ended March 31, 2003 versus the three-months ended March 31, 2002:

-- Consolidated revenues increased approximately 12.8%, from a

restated $721,655 to $813,825 primarily due to continued

growth in military sales in our Performance Sound & Light Inc.

subsidiary. However, this growth was partially offset by the

decrease in NiteLife's billable service hours, as during the

quarter troops were deployed overseas to the Middle East for

the Iraq conflict;

-- Consolidated gross margin decreased from approximately 49.5%

to 40.5% primarily due to the decrease in NiteLife's revenues,

which are of a higher gross margin. However, PS&L's gross

margin for the quarter increased approximately 53.2%, from

22.2% to 34.0 %, due to increased revenues from higher gross

margin custom installations;

-- General and administrative expenses decreased significantly

from 43.8% of consolidated revenues to 36.1% of consolidate 

revenues primarily due to increased sales and a reduction of

personnel-related costs;

-- Interest expense decreased by $93,791 from a restated $160,854

to $67,063 for the quarter ended March 31, 2003. This decrease

is primarily a result of the elimination of extension fees

recorded as interest on our trust obligation during the

quarter;

-- Net income increased $544,526, from a restated income of

$236,177 to $780,703 primarily resulting from the net gain on

our settlement of our obligations to the ETPI 2000 Trust.

Financial highlights for the six-months ended March 31, 2003 versus the six-months ended March 31, 2002:

-- Consolidated revenues increased approximately 18.5%, from a

restated $1,456,159 to $1,725,419;

-- Consolidated gross margin decreased from 47.1% to 41.8%;

-- General and administrative expenses as a percent of revenue

decreased from 40.1% to 33.8%;

-- Income from operations increased from a restated $(2,167) to

positive $28,391;

-- Cash flow from operations increased $371,288 from a restated

$(197,474) to positive $173,814;

-- Interest expense was reduced $120,378 from $261,535 to

$141,157;

-- Net income improved $754,153 from a restated $37,714 to

$791,226.

Mr. Woods added further, "Through the combined efforts of our management team and board of directors, we have resolved many pressing financial and legal issues that will only help the company in its future growth. First, we reached a mutual settlement with the ETPI 2000 Trust, which capped our maximum exposure to the liabilities we owed the Trust. Second, thanks in large part to a loan from a shareholder, we were able to satisfy a judgment that had been rendered against the company emanating from a lawsuit our prior management had instigated. Third, we settled another lawsuit with a plaintiff that had sued the company for actions taken by our prior management. Though there still exists a significant and costly litigation matter between the company and its former chief executive officer, Doug Butcher, we are making significant strides in our operational performance, as well as in the resolution of many of the extraneous and costly non-operational issues with which the company has been straddled. Through the hard work, perseverance, and financial support from our lenders, advisors, and the employees of this company, we are succeeding in making this company a consistently profitable and growing business."

Core Operations

NiteLife Military Entertainment Inc. For the comparable quarters ended March 31, 2003 and 2002, NiteLife's experienced a significant, yet short-term decrease in revenues primarily due to the decrease in billable hours at facilities we manage on military bases resulting from the deployment of troops and support personnel overseas for the Iraq conflict. NiteLife's results this quarter are typical of such events. This decrease in revenues of $163,389, represents a decrease of approximately 26.6%. Management believes that due to the short duration of the Iraq conflict, NiteLife's revenues will return to normal levels as troops and support personnel return to their designated military bases later this year.

Through NiteLife's contracts with the military, it bills its military base customer an hourly rate based on usage of the entertainment facilities on the military bases. Each contract specifies a minimum number of billable hours per week, regardless of usage.

Performance Sound & Light Inc. For the comparable quarters ended March 31, 2003 and 2002, PS&L's revenues increased $225,559, or 239.9%, from $106,531 to $362,090. In addition, its net income increased $55,600 from $(12,906) to positive $42,640. For the six-months, PS&L's revenues increased $438,288, or 139%, from $315,705 to $753,993. Through a recent shift in PS&L's business model from pure product sales to product sales and quality custom installations, PS&L has experienced significant growth. Currently, PS&L has a backlog of purchase orders in house and bids awarded that exceeds $1 million.

General Discussion and Prospective Information

Over the last 12 months, NiteLife and PS&L have made significant improvements in their operations and in reestablishing a high level of customer satisfaction with their military customers, which had suffered under prior management. As previously discussed last year, NiteLife was invited to submit a proposal to provide our services to several Marine Corp bases in Okinawa, Japan. We have now completed several custom installation projects through PS&L on the majority of those bases and anticipate that upon the completion of such work, NiteLife will have the opportunity to once again manage these facilities. Based on our historical experience with these bases, new NiteLife contracts with these bases should represent an additional $750,000 in potential revenue for NiteLife.

As indicated in our prior public filings and press releases, the company has been straddled with many problems resulting from prior management. These problems have proved very costly and time consuming over the last 18 months. Nevertheless, we have resolved many of these issues and to the best of our knowledge, are now left with only one material legal matter with our former chief executive officer. Though this litigation has been a burden on the company, management believes that all of the claims of this former employee are without merit and that it will prevail on this matter at a total cost that will be substantially less than what is claimed by the former employee.

Recently, we received our first commercial purchase order from the University of Houston of approximately $50,000 for the purchase and custom installation of sound and lighting equipment. We believe our successful completion of this job in the 3rd quarter will lead to further commercial business of the same size and scope as that which we currently provide to the military. We believe that this will be a significant area of growth for the company in the future and are extremely excited about building this side of the business.

Our board of directors is very encouraged by the improvements made in fiscal 2002 and to date this year 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 90 entertainment systems on approximately 32 U.S. military bases worldwide. In addition, the Company, through its wholly-owned subsidiary, Performance Sound & Light Inc., sells professional sound, lighting and security video 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.