Family Room Entertainment Project Status Report for July 2006.

LOS ANGELES -- Emmett/Furla Films, a wholly owned subsidiary of Family Room Entertainment Corporation (OTCBB:FMLY), would like to present the following status report on some of its recent motion picture productions.

Family Room Entertainment does not anticipate any back-end profit participation or additional revenues in connection with the motion picture projects "EDISON" or "16 BLOCKS." As was previously stated by FMLY's CEO, George Furla, a particular project would have to generate a minimum of Forty Million Dollars (US$40,000,000) at the US Box Office in order for Family Room to have a possibility of receiving any sort of back-end profit participation during the foreseeable life of the picture in question. Neither "EDISON" (which premiered on home video recently) nor "16 BLOCKS" (which, according to the Internet Movie Database, generated less than Thirty Eight Million Dollars (US$38,000,000) in Domestic Box Office revenues) achieved that level of financial "success."

Going forward, Family Room Entertainment's management believes that due to inflation and rising costs associated with producing and theatrically releasing motion pictures, a particular project would have to generate a minimum of Forty-five Million Dollars (US $45,000,000) at the US Box Office in order for Family Room to have a possibility of receiving any sort of back-end profit participation.

In the near future, Family Room Entertainment has several projects which, although filmed, have yet to be released. These films could possess the potential of back-end profit participation for Family Room Entertainment provided they are able to achieve the Forty-five Million Dollars (US $45,000,000) US Box Office threshold. Some of these films are:

--"BORDERLAND," which Lions Gate Films will distribute, is a horror picture based-on-a-true story;

--"THE WICKER MAN" starring Nicolas Cage for director Neil LaBute ("IN THE COMPANY OF MEN");

--"HOME OF THE BRAVE" starring Samuel L. Jackson, Jessica Biel and Curtis "50 Cent" Jackson" for director Irwin Winkler ("THE NET" & "LIFE AS A HOUSE");

--"KING OF CALIFORNIA" starring Michael Douglas and Evan Rachel Wood ("THE UPSIDE OF ANGER" & "THIRTEEN") for producers Alaxander Payne (Academy Award Winner, Best Writing, Screenplay Based on Material Previously Produced or Published) Michael London (Academy Award Nominee, Best Picture) and for director Michael Cahill.

--"DAY OF THE DEAD," based on the George Romero cult-classic, adapted by Jeffery Reddick ("FINAL DESTINATION") for director Steve Miner ("HALLOWEEN H2O"). The pic will star Mena Suvari, Ving Rhames and Nick Cannon.

--"88 MINUTES" starring Al Pacino for director John Avnet ("UP CLOSE AND PERSONAL"); and

--"THE CONTRACT," starring John Cusack and Academy Award winner Morgan Freeman with Academy Award Nominee Bruce Beresford directing.

as well as several previously announced projects slated for production in Fiscal 2007. Family Room's management is hopeful that within this slate of films one or more of these projects can achieve back-end profit participation.

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 are not historical facts, are forward-looking statements as 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.