Paradise Signs Definitive Agreement to Purchase Leading TV Commercial, Music Video and Film Production Company, Straw Dogs.

NEW YORK--(BUSINESS WIRE)--Sept. 27, 1999--

Paradise Music & Entertainment, Inc. (NASDAQ:PDSE), an artist-centric producer of music, entertainment and media content, today signed a definitive agreement to acquire privately-held Consolidated Entertainment, LLC (dba Straw Dogs), it was announced by Paradise Chief Financial Officer Richard Flynn. Straw Dogs is a profitable and award-winning, Los Angeles-based television commercial, music video and film production company. Paradise is acquiring Straw Dogs for 900,000 shares of restricted Paradise Common Stock. Paradise will also acquire Straw Dogs' directorial affiliate, Spur & Buckles, Inc., for 541,000 restricted shares as part of the transaction. The agreement is subject to final shareholder approval.

Straw Dogs and its talented team of directors and producers has created and produced television commercials for national advertisers including Coca-Cola, Pepsi, Reebok, Budweiser, Nike, Hallmark, and Chevrolet, for leading advertising agencies Grey Advertising and BBDO among others, and music videos for acclaimed artists such as Tom Petty, Tom Waits, Lenny Kravitz and Nick Cave. The Company was founded in February 1998 by Jesse Dylan and Craig Rodgers, and in its first full fiscal year (July 1, 1998 through June 30, 1999) of operations Straw Dogs achieved profitability, with revenues of approximately $19 million and a pro forma pre-tax operating income of approximately $1 million.

Dana Giacchetto, President of The Cassandra Group, Inc., was instrumental in introducing Straw Dogs to Paradise. Mr. Giacchetto, stated, "I am pleased that Paradise is aligning with such a viable and successful production company. Paradise will gain Straw Dogs' proven expertise in the television commercial and music video production fields, and Straw Dogs will gain access to Paradise's far-reaching and expanding management team talent pool. A classic case of the whole being greater than the sum of the parts." Mr. Giacchetto's The Cassandra Group has also organized two private equity financings for Paradise, totaling $6.2 million.

Paradise CEO, Jesse Dylan, commented, "Paradise is rapidly evolving into a diversified public entertainment company focused on nurturing and supporting creative talent in a variety of markets and media. In particular, we see a significant growth opportunity in expanding our commercial production operations through Straw Dogs. As the commercial industry revolves around creative talent, we are extremely fortunate to gain, through the acquisition of Straw Dogs, the services of such notable directors as Neil Burger, Charlie Cole, Mike Rowles and Rob Lieberman."

"Everyone here at Straw Dogs is thrilled about becoming a part of the Paradise team," said Craig Rodgers, who will become President of the Straw Dogs division when the transaction closes. "We will actively seek to add talented commercial directors to our growing creative team with Paradise's support as a publicly traded entertainment company and through the vast relationships Paradise's management maintains with others in the entertainment industry."

Paradise Music and Entertainment, Inc. is an artist-centric and multi-faceted entertainment company focused on nurturing its growing talent base. The Company is engaged, through its wholly owned subsidiary companies, in television and theatrical motion picture theme composition and production, television program and commercial production, music video production, musical artist recording, distribution, marketing and management. Its wholly owned subsidiary companies include (i) Straw Dogs, Inc. (commercial, video and film production), (ii) PUSH Records (independent record label teamed with V2 Records), (iii) Picture Vision (film, television and music video production company), (iv) Rave Music (commercial music/film score producer), and (v) All Access Entertainment Management Group, Inc. (music artist management).

Legal Disclaimers: This Press Release may contain forward-looking statements with the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements. The forward-looking statements contained herein represent the Company's judgment as of the date of this report hereof, and the Company cautions readers not to place undue reliance on such statements.