Magic Lantern Group Completes Another Important Phase in Its Strategic Restructuring Plan.

NEW YORK -- Magic Lantern Group, Inc. (AMEX: GML), a leader in the international distribution of educational digital content and e-learning solutions, announced today that the Company has completed several restructuring initiatives to position it for future growth. These include raising a total of approximately $4.2 million USD since September 2003, debt restructuring, the recent conversion of certain short-term debt into equity, and senior management appointments of seasoned entrepreneurial business executives, including Company CEO Bob Goddard, CFO Ron Carlucci and EVP of Global Sales and Marketing Jeff Lorenz.

President and CEO of MLG Bob Goddard stated, "Since my appointment in November 2003, the Board of Directors has provided the latitude and support for me to assemble a new team of specialists who bring a broad and diverse professional background to the company. Our management now has the financial and marketing acumen to move the company into several, new high-growth verticals. While we will increase our general core business, we've devoted substantial resources and new technology to drive the profit potential of an online, indexed video streaming component globally. Our team is now directing strategies to capture sales across these market segments."

Goddard concluded, "Existing educational distribution contracts, strong online web-sales along with new digital streaming opportunities will push us aggressively into U.S. and international markets. These initiatives should propel total revenues to $5 million CDN, or $4.1 million USD, in 2005. The successful completion of additional material digital sales and other international initiatives could see our initial year-end revenue projections significantly increase. Our restructuring also includes lowering costs, divesting of a non-performing analog dubbing business, and restructuring and reducing our debt. Combined with our anticipated top-line growth, we expect to generate positive EBITDA by mid year 2005."

MLG EVP of Global Sales and Marketing Jeff Lorenz stated, "We have streamlined our 'go to market' strategy providing greater focus on content and technology as unique components of our tremendous product offering. In addition, with the implementation of a new Customer Relationship Management (CRM) tool, a new sales compensation structure, and an enhanced e-commerce infrastructure, we are poised for a very exciting and very successful 2005."

About Magic Lantern Group, Inc.

Magic Lantern Group, Inc., operates several strategic subsidiaries and divisions, including its core business for nearly 30 years, the global distribution of videos and DVD's from more than 300 world-renowned producers. Recently launched vertical subsidiaries and divisions are: Magic Vision Digital Media, Inc., a provider of digital on-demand/on-line desktop delivery for sports entertainment, health care, human resource, and corporate governance and compliance industries; Sonoptic Technologies, a pioneer in indexed video streaming and leading provider of third-generation digital technology solutions; its newest division, Parasol Video, an online digital video library enterprise for worldwide educational markets; and the recent launch of DigiTron, Ltd, an in-house producer of original TV broadcast programming. For more information, visit: http://www.magiclanterngroup.com.

Contact Information: For Investor Relations, contact Gary Geraci, National Financial Network, 781-444-6100 ext. 629, email: [e-mail] and visit: http://www.nfnonline.com/gml/. At the Company, contact Lorraine Villa, Executive Assistant to the CEO, [e-mail], 1-800-263-1717 ext.2450.

This Press Release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements refer to future events of future financial performance. The company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "could," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the company's current beliefs and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors, including those risks identified in our Annual Report on Form 10-K, which could cause the company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this press release including such forward-looking statements.