Devine Entertainment 2006 results reflect active development year



    Company expects notable multiple source increases in 2007

    TORONTO, April 3 /CNW/ - Devine Entertainment Corporation (OTCBB:DVNNF)
today announced the Company's results for the year ended December 31, 2006.
Revenues of $423,959, compared to 2005's
    $4,019,745 were lower primarily as a result of $2,952,356 in revenue from
a non-recurring foreign distribution guarantee for Bailey's Billion$ that was
recognized in 2005 (all in Canadian dollars). In addition, the establishment
of new international distribution agreements with Carrere Group, which took
effect late in 2006, delayed new international broadcast sales into 2007.
Also, Devine's proprietary library of completed television programs and
recordings generated lower revenues than in 2005. The Company expects
significant library sales increases in 2007. EBITDA, defined as earnings
before interest, taxes, depreciation, amortization and gains on settlement of
debt was ($460,329) or ($0.01) per share in 2006. Net loss in year ended
December 31, 2006, was ($2,514,151) or ($0.07) per share reflecting the
Company's accelerated amortization of its proprietary film library and its
work in progress which totaled $2,010,385.
    President and C.E.O David Devine noted: "2006 was a very active
development year for the Company, focused on project financing, the production
of a new primetime series and establishing new international distribution and
co-production relationships, the positive financial impact of which will be
reflected in our financial statements for the next six to twelve months and
beyond."
    The Company completed the $8.1 million financing of its new primetime
mystery series for Chum Television, Across the River to Motor City, and
completed principal photography on the series on schedule and on budget.
Canadian broadcast license agreements currently agreed to will generate
initial revenues from the series of at least $4 million in the first six
months of 2007 when the episodes will be completed and delivered. The Company
is optimistic about the success of Across the River to Motor City and the
possibility of new episodes of the series being ordered by Chum Television for
2007-2008. The Company also recently announced that subsequent to the year
end, Chum Television committed additional funding for new scripts for the
second season of Across the River to Motor City.
    Devine also delivered master duplication and sales materials to Carrere
Group of France (Paris Stock Exchange EPA: CAR) in August 2006. The Company
expects that the multi-year agreement announced July 11, 2006 with Carrere
Group will start to generate revenue from sales of Devine's film library in
2007. Additionally, the Company is working closely with co-producer Carrere
Group to bring its new six episode series The Writers' Specials, budgeted at
approximately $7.5 million, into production.
    As 2007 begins, the Company is optimistic about the successful commercial
exploitation of its new one hour primetime mystery Across the River to Motor
City and its library of motion pictures and television programs and
recordings. With approximately $4 million of contracted pre-sale broadcast
licenses with CHUM Television in place for Across the River to Motor City and
results from the new international distribution agreement for the Company's
library with Carrere Group expected to begin in 2007, this next year promises
to be among the Company's strongest ever.
    Revenues for 2007 are conservatively estimated at approximately
$5 million, approximately $4 million of which are from contracted pre-sales
for Canadian broadcast licenses of the Company's new series Across the River
to Motor City expected in the first six months of 2007 as the first six
episodes budgeted at $8.1 million are completed and delivered. The balance of
the Company's estimated revenues are expected from sales of the Company's film
library which, with new distribution partners, Carrere Group of France, is
expected to return to historical sales levels, which have averaged over
$800,000 annually since 2000.

    
                                               Dec. 31, 2006   Dec. 31, 2005
                                              --------------- ---------------
    Revenues                                         423,959       4,019,745
    Operating Expenses                               857,504         851,018
    EBITDA                                          (460,329)      3,150,327
    Amortization and write-down of Film and        2,010,385       3,325,049
     Television programs
    Income taxes                                           -               -
    Net earnings (loss)                           (2,514,151)       (233,409)
    EBITDA (loss) per common share
    Basic and diluted earnings (loss)                  (0.01)           0.09
     per common share                                  (0.07)          (0.01)
    Average fully diluted shares outstanding      37,575,373      34,649,419
    

    Five-time Emmy Award-winning Devine Entertainment Corporation develops,
produces and distributes primetime drama, children's and family entertainment
for the theatrical motion picture, television and Video/DVD marketplace
worldwide. Their film series on landmark Composers', Inventors' and Artists'
are critically acclaimed and broadcast in over 50 countries. The Company
recently completed its first feature film for theatrical release, Bailey's
Billion$, which was released in North America on August 5, 2005 and is
currently being distributed worldwide. In 2006 the Company continued expanding
its proprietary library and financed and began production of its first general
audience primetime one-hour mystery series, entitled Across the River to Motor
City for delivery to broadcasters worldwide in 2007. Headquartered in Toronto,
the Company's common shares trade on the NASD OTCBB market in the U.S. under
the symbol DVNNF. The Company's corporate website is www.devine-ent.com."

    This press release contains forward-looking statements relating to the
future performance of Devine Entertainment Corporation. Forward-looking
statements, specifically those concerning future performance and the
achievement of operating profitability are subject to certain risks and
uncertainties, and actual results may differ materially. These risks and
uncertainties include fluctuations in revenues; market acceptance of the
Company's products and services; competition within the film and entertainment
industry and the introduction of new entrants and/or products in the Company's
markets; adverse changes in governmental regulations and policies affecting
the film and entertainment industry; product development risks and risks of
technological change; the risk of unanticipated expenses; and other risks and
uncertainties all as described in the disclosure documents filed with
securities regulatory authorities in accordance with applicable securities
laws. Readers are cautioned that the foregoing list of factors is not
exhaustive. Although the Company believes that the expectations conveyed by
the forward-looking statements are reasonable based on information available
to it on the date such forward-looking statements are made, no assurances can
be given as to future results, levels of activity and achievements. All
subsequent forward-looking statements, whether written or oral, attributable
to the Company or persons acting on its behalf are expressly qualified in
their entirety by these cautionary statements. The Company assumes no
obligation to update forward-looking statements should circumstances or
management's estimates or opinions change.




For further information:

For further information: Arnold Tenney, Richard Mozer, Devine
Entertainment Corporation, Telephone: (416) 364-2282; Herbert Lanzet/DeeDee
Lanzet, H.L. Lanzet, Inc., Telephone: (212) 888-4570

Organization Profile

DEVINE ENTERTAINMENT CORPORATION

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