Family Room Status and Scheduling for 2004.

Entertainment Editors/Business Editors

LOS ANGELES--(BUSINESS WIRE)--Jan. 27, 2004

Emmett/Furla Films, a wholly owned subsidiary of Family Room Entertainment Corporation (OTCBB:FMLY), would like to give a status and scheduling update for upcoming 2004 productions.

The first project slated to go into production is "Edison," which will be produced in conjunction with Avi Lerner's Millennium Films, who will also finance the picture. "Edison" was written by director David Burke. Kevin Spacey, Morgan Freeman and LL Cool J are set to star. "Edison" is scheduled to begin filming on March 7th.

Emmett/Furla will also begin filming two more Steven Seagal action-ers. The first film, "Submerged," will begin filming on June 1st. The second, yet-to-be-titled film is scheduled to begin production on September 1st. "Submerged" will be directed by Anthony Hickox.

Emmett/Furla Films has also become "pay or play," a common entertainment industry term guaranteeing compensation, on the feature film "Amityville." Emmett/Furla Films will be paid upon the earlier of commencement of principal photography of the picture or later than October 31, 2004.

Recently, Emmett/Furla Films announced that it is in active negotiations with DMX to act in and co-produce, through DMX's film production company Bloodline Films, two feature films. The two films are "Winners" and "Past Tense." "Winners" will be directed by Gregory Poppen. "Past Tense" will be directed by Stanley Tong ("Rumble in the Bronx" & "First Strike").

Emmett/Furla Films is also in active development on a feature film version of "Micronauts," based on one of the most successful and groundbreaking action figure toy lines, which, during its heyday in the 1970s and `80s, sold over $300 million of product for the Mego Toy Company -- second only to Star Wars in total sales. Gale Anne Hurd ("The Hulk") will produce with Emmett/Furla.

Also in active development is a feature film version of "The Abominable Snowman," which will be produced with Ilya Salkind ("Superman" and its sequels) as well as Gale Anne Hurd.

Emmett/Furla Films has also chosen to abandon the proposed agreement with Diamond Entertainment and Blagman Media International to release a series of DVDs and videos through direct response marketing.

Family Room Entertainment Corporation, with its subsidiaries, Emmett/Furla Films Productions, Emmett/Furla Films Distribution and EFF Independent, 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 aim is to create and produce high quality motion pictures with high profile talent that can be distributed to a worldwide audience. FMLY derives its income from producer fees, consulting and service fees, as well as its participation in the profits of the various 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 production and distribution arenas, to profitably acquire content, package product by adding value to the content with top quality talent and produce motion pictures which are in the moderate to higher level budgets, which can be distributed 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 that term is 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.