Genio Group Appoints Steven Lux CEO Concurrent with Securing $500,000 in Funding Commitments; Genio Relocates NYC Offices.

NEW YORK -- Genio Group, Inc. (OTCBB:GNOI), a developer and marketer of lifestyle products for children through adults, announced today that it has named Steven R. Lux, 44, as Chief Executive Officer. Mr. Lux assumes the CEO role from Shai Bar-Lavi, a founder of Genio, who will continue to serve as Chairman of its Board of Directors. Mr. Lux has over twenty years experience in the development, marketing and sales of consumer entertainment and leisure products.

Genio also announced that it is has secured $500,000 in additional funding commitments from Crestview Capital Master, LLC, a fund of Northbrook, IL-based Crestview Capital Funds. A portion of the capital is being designated for use in funding Genio's planned launch of Tomy UK Ltd.'s baby and nursery line in North America.

Crestview's additional capital investment is being made in conjunction with an amendment to the $1.5 million in 8% convertible debentures purchased by Crestview in July - as well as related warrants - reducing the conversion prices to $0.20 and $0.60, respectively. The additional investment is also being structured as an 8% convertible debenture with related warrants, which are convertible into Genio Common stock at prices of $0.25 and $0.60 per share, respectively. Genio has already received $300,000 of the $500,000 commitment. A further $200,000 in funding has been committed by Crestview or another party, and is expected to close by the end of the month.

Shai Bar-Lavi, Genio's Chairman, said, "Steve Lux brings the perfect skill set, experience and base of industry relationships to support Genio as we develop and pursue a growing array of product lines. The Board and senior management team were impressed with his initiatives during the past three months in his capacity as a consultant to Genio. His industry experience combined with his contributions to Genio resulted in his appointment to the CEO position.

"We are also pleased to announce Crestview's financing commitment and initial funding as it demonstrates their confidence in Genio's long term business potential, while providing capital needed to roll-out our Tomy Nursery line. This capital infusion will allow us to move quickly on developing that line of business."

Mr. Lux is an accomplished executive in the field of entertainment-oriented consumer products. In 2003 and 2004, he was Acting General Manager and Senior Vice President, Marketing of Codemasters, Inc., the US division of a UK-based interactive entertainment company. At Codemasters, he spearheaded the sales and marketing initiatives for products including the American Idol video game and oversaw the finance, distribution, operations and HR functions.

Prior to Codemasters, Mr. Lux was General Manager of WFX, LLC, a pioneering firm in wireless entertainment. At WFX, Mr. Lux co-created and launched Britney Spears Wireless Fan Access, the first wireless entertainment product available at retail, in partnership with Best Buy, Samsung and AOL Time Warner.

Additionally, Mr. Lux spent twelve years with Acclaim Entertainment, most recently as Vice President Marketing, from 1996-2000. He was instrumental in forging marketing and brand strategies for the Acclaim, Acclaim Sports and Club Acclaim brands, as well as the launch of hit video games such as Mortal Kombat, Turok: Dinosaur Hunter, NFL Quarterback Club, South Park and titles based on Mary-Kate and Ashley Olsen and the WWE (World Wrestling Entertainment). Prior to that, he launched his toy career at LJN Toys, Ltd.

Mr. Lux earned a Bachelor of Arts degree from Emory University and his MBA from Boston University.

Genio Group also announces its relocation to lower cost offices, effective November 1st. The company's new contact information is:

Genio Group, Inc.
15 East 26th Street, Suite 1711
New York, NY 10010
Phone: [phone]
Fax: [phone].

About Genio Group, Inc.

Genio Group, Inc., is an innovative developer and creative marketer of entertainment, leisure and lifestyle products for kids and families. Genio products are distributed through a range of leading U.S. retailers including Wal-Mart, Target, CVS, K-Mart, Toys-R-Us, Eckerd and Walgreens; specialty retailers; hobby and game, comic book and card retailers; and other specialty stores, as well as abroad in selected markets. For more information about Genio Group, visit www.genioinc.com.

Except for any historical information that they contain, the statements in this news release regarding Genio Group, Inc.'s plans are forward-looking statements that are subject to certain risks and uncertainties, including, but not limited to, those relating to product demand, pricing, market acceptance, the effect of economic conditions, and intellectual property rights and the outcome of competitive products, risks in product development, risks of non-payment by distributors to Genio Group for purchase of our products and inability of Genio Group to reach agreements with distributors for distribution of our products in domestic and foreign countries and other factors discussed from time to time in Genio Group, Inc.'s Securities and Exchange Commission filings. Genio Group, Inc. undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.