eWorldMedia, Inc. Resolves Legal Issues With Avalon Digital and GTC With Successful Defense of Its Intellectual Property.

NEWPORT BEACH, Calif. -- eWorldMedia Holdings, Inc. (OTCBB:EWMD), a leading provider of Internet communication products, announced today that they have successfully resolved all legal matters against Avalon Digital Marketing Systems, Inc. (Avalon) and Global Technology Connections, LLC (GTC) and successfully defended their intellectual property rights.

In accordance with the agreement, Avalon certifies that all rights in all works performed by Avalon in connection with the Courier software, including copyrights applicable to any of the intellectual properties described therein, are the exclusive property of eWorldMedia, Inc., and that Avalon does not have any title or ownership therein. Furthermore, Avalon assigns all of its remaining rights, titles and interests -- past, present and future -- in the Courier software, the GTC agreement and the eWorldMedia software to eWorldMedia, Inc.

In further accordance with the agreement, GTC also assigns all its rights, titles and interests -- past, present and future -- in the Courier software, in GTC's agreement with Avalon, and the eWorldMedia software to eWorldMedia, Inc. Avalon further certifies that it has not knowingly granted licenses to the Courier or eWorldMedia software to any entity other than GTC.

Commentary

In response to the announcement, Ronald C. Touchard, CEO of eWorldMedia, Inc., stated, "We are very pleased to have this matter put to rest. There was never any doubt in our mind that the eWorldMedia and Courier software systems were the exclusive property of eWorldMedia, Inc. Now it is clear to all that our eWorldMail system is not only the most powerful and effective Next Generation email system in the market place, but that it is also exclusive, proprietary and patented by eWorldMedia, Inc. We look forward to continuing to enhance the value and functionality of our eWorldMail products, and to continuing to expand our marketing efforts of these products both domestically and internationally."

About eWorldMedia, Inc.

eWorldMedia, Inc. is a wholly-owned subsidiary of eWorldMedia Holdings, Inc. (OTCBB:EWMD). eWorldMedia, Inc. was organized on December 7, 2001, to provide Internet-based communication, marketing and advertising solutions to retail merchants, service-oriented professionals and entrepreneurs. The company also markets cutting edge tools and turnkey systems that allow individuals to build small office and/or home-based businesses over the Internet.

The core product offered by eWorldMedia is eWorldMail -- a patented and revolutionary "Next Generation" Rich Media email messaging system that allows any user, in a matter of minutes, to create 20-40 second TV-quality commercial-like messages and then broadcast them as standard email messages. When the customer or prospect clicks on the email message, their computer screen immediately comes alive with sound, music, photographs, streaming video, animation and graphics. The quality and impact of these multi-media commercial messages are believed to be equivalent to those currently seen on television.

eWorldMedia's online "eWorldMail Rich Media System" also provides all the tools needed to create send, track and monitor these messages, all with simple "point-and-click" operation. Once sent, messages can be tracked by specific email address to reveal which recipients received, opened, or forwarded each message, including the specific links they clicked through for further information.

This press release contains forward-looking statements that involve risks and uncertainties within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 concerning the company's expected financial performance, as well as its strategic and operational plans. All information set forth in this release is made as of October 21, 2004, and the company undertakes no duty to update this information.