Grand Entertainment & Music, Inc. Shareholders Update.

MONTREAL -- In conjunction with our investor awareness program, Grand Entertainment & Music, Inc. (OTC: GENM), through its CEO Fred Berlin, announced today a Shareholder update. "It has been a busy month, setting us up for what looks like a very productive summer and beyond. Due to a longer-than-expected trip working on the Gem Latino project, which kept management busy and out of town over the past ten days, we weren't able to get the update out timely and we apologize for the delay."

Artist "Qbanito" -- The buzz on this new artist has been growing daily, and because of that his tour has expanded to include six new dates in the New York and New Jersey areas. We anticipate by the time his album and remixes are complete and ready for release that additional tour dates will begin. An east coast tour will begin here in Montreal first, then onto the Tri-State area (NY, NJ, PA), followed by Washington and Virginia and will finish up in Florida with dates in Orlando, Sarasota, Palm Beach, Fort Lauderdale and Miami. We are looking forward to as great of a response to his album as we have had during his live performances.

Convoy Cubano -- The mixing of their album has taken longer than originally planned due to having to re-record several parts by the artist as well as the availability of our studios due to other commitments. The release date has been moved to approximately mid June. More updates on this project will follow as they're available.

New Releases -- The Company is planning to release as many as 15 Albums before the end of the year, featuring the following Artists: QBANITO, CONVOY CUBANO, MEY VIDAL, COSTANZA, THE GROUP ONE, DJ FREDDIE B & FRANK E DVS, BARBARA, THE JESUS PEREZ PROJECT, TIERRA, MARY ME, DJ FREDDIE B featuring various artists and our CHRISTMAS SERIES in both English and French.

Web site -- The completion of our GEM Music web site is moving along. As you may already be aware, the new site runs on a sophisticated technology in and behind the site itself. The several components that comprise the site are now at the finishing point and will now be brought together. In addition to the Company having earmarked some of its funds for this conclusion, we have given the programmers a deadline of a month for this last part of the site to be finished. They also know the urgency of the project, and we will hold them accountable to this agreed timing. CEO Frederick Berlin stated that "as I have said before, I am not happy with the delays, but we wanted a website that would be a unique, robust and fully compatible with both Microsoft and Apple technology."

Webmaster Agreements -- Berlin further stated: "We feel that on completion of our web site we'll be able to move forward on some of the webmaster agreements that we had started negotiating earlier in the year. Because of progress already made on several of them and since we'll have met the needed system requirements to interface with them upon our site completion, we feel some will get closed shortly after launch." Berlin went on to say, "Remember, GEM is not trying to compete with the Napsters, iTunes or Microsofts of the world. GEM just wants to work with them and have them work with us."

Acquisitions and Partnerships -- As mentioned above, our CEO Fred Berlin has been traveling quite extensively, particularly for our Gem Latina projects but also in search of partnerships and potential non-dilutive acquisitions to further grow the company. We have no doubt that several of the new meetings will turn into viable agreements and keep your company on a major growth curve.

Regarding the current share structure of the stock, Fred Berlin went on to say, "We still rest at approximately 1.25 billion shares. There have been no additional shares issued in over three months. In keeping with the last shareholder update, as everything is moving forward on a very positive note we do not anticipate the need for any additional funding at this time or in the next several months and therefore the issuance of any new shares for that purpose wouldn't make any sense. I assume that I share the same mind-set that the shareholders do about any future funding for this company should that become a necessity in the growth of our business. That mind-set is to try at all costs to do any subsequent raises, if needed, at much higher prices to prevent too many shares from existing. Additionally, if we determine that funding is needed, the shareholders will be notified in advance before we decide on anything. As far as any potential reverse splitting of the company's stock, we don't see any need to have one anytime soon and comfortably not until 2006 sometime. The main reason we'd consider it would be to meet minimum share price requirements for a major exchange. Please feel free to call our transfer agent in Texas for any questions about the share structure of the company. Deposit Guaranty Corporation [phone]."

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 soundtracks for commercials and film, which are used on the radio, television and in theaters. Cherry Studios has produced thousands of records in its studios and has to its credit a total of 23 Gold and Platinum records. GEM, 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 The Company's mission is to become a leading consolidator of quality music catalogues as well as a premier production, recording, publishing and Internet Distribution Company in the music industry.

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.