Family Room Crowns "KING OF CALIFORNIA" at Sundance Film Festival.

LOS ANGELES -- Emmett/Furla Films (a wholly owned subsidiary of Family Room Entertainment (OTCBB:FMLY)) is pleased to announce "KING OF CALIFORNIA" has been accepted to the 2007 Sundance Film Festival. The film, written and directed by Michael Cahill, stars Academy Award winner Michael Douglas and Golden Globe nominee Evan Rachel Wood ("THIRTEEN"). Fellow Academy Award winner Alexander Payne ("SIDEWAYS") and fellow nominee Michael London ("SIDEWAYS") produced the picture.

The pic is a bittersweet comedy about a teenage girl (Wood) and her eccentric father (Douglas), whose obsession with buried treasure in the San Fernando Valley takes over both their lives.

Michael Cahill will be making his feature film directorial debut on the project. He is best known for his Faulkner Prize winning novel A Nixon Man. A graduate of UCLA Film School and classmate of Alexander Payne's, Cahill won the Morrison/Jacobson Award for his short film "The Knife." His follow up short film "A Broken Horse" was featured at numerous film festivals in the US and Europe.

The pic was financed and produced by Emmett/Furla Films in conjunction with third parties. The pic will premiere on January 24, 2007 in Park City, UT.

About Family Room Entertainment:

Family Room Entertainment Corporation, with its subsidiaries, Emmett Furla Films Productions ("EFFP"), Emmett Furla Films Distribution ("EFFD") and EFF Independent (EFFI"), is a publicly held company trading on the NASDAQ Bulletin Board under the symbol "FMLY." Family Room Entertainment develops, produces and performs production related services for the entertainment industry. Family Room Entertainment's goal, through EFFI and EFFP, is to facilitate relationships (and as such, provide production related services) between creative talent (including writers, actors and directors) and companies who produce, finance and distribute motion pictures. FMLY derives its income from producer fees, production consulting and service fees and royalties as well as participation in the profits, if any, of certain of the pictures it produces.

The FMLY co-founders, Randall Emmett and George Furla, believe that they have the expertise and contacts within the entertainment industry, specifically in the competitive development, production and distribution arenas, to profitably acquire content, package product by adding value to the content with top quality talent and arrange with third parties to produce and finance motion pictures which are in the moderate to higher level budgets, which can be distributed by those with the expertise to effectively do so to a mass worldwide audience. However, there is no assurance that any motion picture, which has not yet been released, will be released, that a change in the scheduled release dates of any such films will not occur or, if such motion picture is released, it will be successful.

Forward Looking Statement:

Safe Harbor: Statements contained in this news release, which is not historical facts, are forward-looking statements as that are defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause results to differ materially from those projected.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "ACT"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "expect," "intend to" and similar conditional expressions are intended to identify forward- looking statements within the meaning of the ACT and are subject to risks and uncertainties, and actual results could differ materially from those expressed in any forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.