Entertainment Arts Announces 69% Increase in Sales for Song Factory Subsidiary.

Entertainment Editors/Business Editors

EMERSON, N.J.--(BUSINESS WIRE)--Jan. 15, 2003

Entertainment Arts, Inc. (OTC: ETAI) today announced that its Song Factory, Inc. (Song Factory) operating subsidiary reported sales of $853,824 for the fiscal year ending September 30, 2002 versus sales of $589,107 for the previous operating period ending September 30, 2001.

Gross profit and net income for the fiscal year ending September 30, 2002 were approximately $329,931 and $(50,866) respectively compared to gross profits of $315,521 and net income of $99,152 for the operating period ending September 30, 2001. These results are derived from an unaudited compilation financial statement prepared from information provided by management.

On February 15 2001, ETAI purchased certain assets from the principals of Song Factory, Inc. which is now operated under the same name as a wholly owned subsidiary of Entertainment Arts, Inc.

Management also reported that, based on ETAI's exclusive license and distribution agreement for certain holographic imaging technology which was reported in release dated June 7, 2002, ETAI has entered into two separate agreements: one with L.E.D Solution, Inc. of Ontario, Canada and the other with Maranantz Japan, Inc. Eric Brown, President and CEO of Entertainment Arts, Inc. was quoted as saying, "These two initial contracts offer the foundation of what could be a very beneficial reoccurring potential revenue stream as well as a way of diversifying our existing core Karaoke product line sales."

Mr. Brown was further quoted as saying, "We have just returned from what I believe was a very successful and well received Song Factory presentation at the Consumer Electronics Show (CES 2003) in Las Vegas, Nevada at the Enter-Tech Corp. booth featuring the "Entertainer All-in-One " Karaoke microphone product. Song Factory supplies all the copyright materials, under a royalty arrangement, for the songs utilized by Enter-Tech Corp for the "Entertainer All-In-One" Karaoke microphone. It is anticipated that the product will be made available, late in the first quarter of 2003, through mass merchants and chain stores at a retail price of $149.00. The show, which included over 2,200 exhibitors and had an estimated attendance of 116,000 people, also gave us the opportunity to make additional presentations to a number of representatives from Las Vegas Hotel/Casinos for our holographic technology product."

Entertainment Arts, Inc. is a diversified, multifaceted company involved primarily in entertainment industry opportunities. The Company operates through its various subsidiaries. Its Song Factory, Inc. subsidiary produces and markets its own library of "Karaoke Classics". Song Factory products are available to purchase on-line at www.songfactory.com

To date, the Company's shares have been quoted on the Pink Sheets. In order for the shares to be quoted on the OTC Bulletin Board or the proposed BBX, the Company will be required to file a Form 10-SB Registration Statement with the SEC and the NASD must clear the securities for trading on the OTC Bulletin Board or the proposed BBX. The Company intends, as soon as possible practicable, to begin the process to have its shares quoted on the OTC Bulletin Board or the eventual BBX.

Safe Harbor 

This release includes forward-looking Statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.