Grand Entertainment & Music, Inc. Opens New Associate Company `GEM LATINA'; GEM LATINA Signs Multi-Year Million Dollar Recording Contract with Convoy Cubano.

MONTREAL -- A spokesperson for Grand Entertainment & Music, Inc. (OTC: GENM) today announced that it has opened a new associate company GEM LATINA, an entertainment, film production and music company. GEM LATINA's mission is to become the leading worldwide provider of original and co-inspired Latin music, films and publications. GEM LATINA is pleased to announce that it has signed a multi-year million dollar recording contract with Convoy Cubano, a popular Montreal-based Ragaton group. Ragaton is a type of music derived from placing rap lyrics over traditional son rhythms played live. The group consists of MCs Neiver ("Cubanito") Alvarez and Reinery Diaz. Under the terms of the contract, GEM LATINA will record a series of albums for Convoy Cubano at GEM's Cherry Studios. The first album, produced by Jesus Allejandro Perez ("El Nino") and engineered by GEM's Vice-President of Production Peter Stocola, will be released within the next six weeks. In addition, GEM LATINA has commenced the recording of a second album for Convoy Cubano, which should be completed in the same time frame as the first album.

CEO Fred Berlin stated: "The opening of GEM LATINA and the initial contract signing with Convoy Cubano is a significant achievement for GEM. GEM LATINA is well-positioned to profit from the rapidly rising international demand for Latin music and entertainment. We expect to sign several additional deals in the near future to produce albums for other notable Latin artists, and to distribute, license and publish content from Latin music and entertainment companies."

About Grand Entertainment & Music, Inc.

Based in Montreal, PQ, and incorporated in November 1998, the Company is an independent music producer that produces, promotes, markets and controls the copyrights on music recordings in multiple formats. Additionally, the Company's multi-million dollar studios produce voice-overs and sound tracks for commercials and film, which are used on the radio, television and in theatres. Cherry Studios has produced thousands of records in its studios and has to its credit a total of 23 Gold and Platinum records. GENM, a pioneer in the Internet distribution and digital download field, currently owns and controls all its content and distribution rights. Having both content and distribution rights enables GENM to entrench itself in the Internet distribution and download business before the majors enter the market. The Company's mission is to become the premier production, recording, publishing and Internet Distribution Company in the music industry. In addition, its mission is to become a leading consolidator of quality music catalogues.

For more information please contact Investor Relations at [phone] ext. 601 or visit the Company website at www.gem-music.com.

Safe Harbor Statement

This release contains forward-looking statements with respect to the results of operations and business of Grand Entertainment & Music (GEM) Inc., which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward looking statements be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.