Devine Entertainment Releases CEO Letter to Shareholders Recapping Past Year's Accomplishments



    Letter Outlines Recent Financial Growth and Strategic Measures for
    Continued Progress in Coming Year

    TORONTO, Dec. 14 /CNW/ - Devine Entertainment Corporation (OTCBB:DVNNF),
seeking to capitalize on the burgeoning global demand for high quality film
and television content, has announced the release of a Letter to Shareholders
from David Devine, President and Chief Executive Officer. The text of the
letter follows.

    To Devine Shareholders,

    With 2007 coming to a close, I wanted to take a few moments to express my
appreciation for your past and current support for Devine Entertainment as we
continue in our mission to produce and distribute award-winning film,
television and home entertainment content. It has been a rewarding year for
all of us at Devine, and we have been gratified to see our strategies result
in numerous important business achievements, and strengthened our Company's
foundation for further progress in the coming year.
    Here are a few of the milestone events that have marked the success of
Devine's business and creative initiatives during the last year.

    
    -   In Q3, we were proud to report substantial revenue and earnings
        growth, with our operations generating revenues of $5.6 million for
        the first nine months of 2007, a 1,550% increase over the same period
        last year. In the Q3 of 2007, we achieved positive earnings, gaining
        $.01 per share.
    -   Our first primetime television miniseries, "Across the River to Motor
        City," premiered on November 22 to critical acclaim and strong
        audience ratings, a notable achievement for Devine's first venture
        into the adult age demographic marketplace. At the same time, our
        family, children's and educational film library continues to grow in
        value.
    -   We expanded our international sales and distribution agreement with
        Carrere Group of France to include marketing "Across the River to
        Motor City" in France and French-speaking territories, as well as to
        distribute other Devine content globally outside North America.
    -   To address technology transformations in the entertainment industry,
        we formed the Devine Digital Content Group to accelerate revenues in
        the burgeoning market for online distribution of entertainment
        content, including video-on-demand (VOD), wireless and other new
        electronic distribution channels.
    -   Devine listed for trading on the Frankfurt Stock Exchange - the
        largest exchange in Europe and the third-largest worldwide - to help
        raise our exposure in the large and important European finance and
        investment community. Additionally, last month I undertook a multi-
        city road show to meet personally with investment professionals based
        in the United Kingdom, Switzerland and elsewhere.
    -   We executed a far-reaching digital distribution agreement with
        NetMovies Inc. to make Devine's film content available for sale and
        download on demand directly to consumers via the Internet. NetMovies
        is 34% owned by Blockbuster Inc. and its founder and Chairman is John
        Fanning, who was also founding Chairman and CEO of the music download
        pioneering company Napster Inc.
    -   We announced an updated valuation of our film and television library
        showings its estimated value increasing to $10 million, or $.20 -
        $.25 per share.
    

    We believe our work to create and distribute high-quality film,
television and home entertainment content has positioned us for continued
growth in the months and years ahead. A close analysis of Devine shows a
company that, in our opinion, is significantly undervalued today. Between the
value of our library assets and that of current operations we believe Devine
should be appropriately valued now at approximately $.50 per share, though the
addition of anticipated operations could further increase that projected
shareholder value.
    Devine's business plan has already stood the test of the marketplace.
With your ongoing support and continued investments, we anticipate the coming
year will be our most exciting yet.

    Best Regards,
    David Devine
    Chief Executive Officer

    About Devine Entertainment

    Devine Entertainment Corporation develops, creates, and produces
award-winning television programming and feature films for worldwide
distribution across multiple TV broadcast networks, cable and satellite
networks, DVD and Internet markets. Specializing in cultural and educational
programming as well as prime-time drama and comedy entertainment programming,
the Company's titles have garnered more than 120 international film and
television industry awards, including five Emmy and five Gemini Awards. The
Company partners with leading international distributors, broadcasters and
co-producers, such as Sony BMG, Rogers Media and The Carrere Group of France,
to produce and distribute its award-winning film and television titles.
    Among Devine's critically acclaimed productions are its cultural and
educational film series on history's landmark Composers, Inventors and
Artists, which have been broadcast in more than 50 countries. The Company
continues to expand its proprietary library of high-quality film and
television content. Among its general-audience primetime programming is the
acclaimed one-hour mystery series, "Across the River to Motor City," delivered
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, and on the Frankfurt Stock Exchange under the ticker 3TD. The Company's
corporate website is www.devine-ent.com.

    Investor-specific information and resources:
    http://www.trilogy-capital.com/tcp/devine.

    View current stock quotes and news:
    http://www.trilogy-capital.com/tcp/devine/quote.html.

    Investor Fact Sheet:
    http://www.trilogy-capital.com/tcp/devine/factsheet.html.

    Forward-Looking Statements

    This press release may contain 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 the 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: Devine Entertainment Corporation Arnold Tenney,
Richard Mozer, (416) 364-2282, Toll-free: (877) 338-4633,
atenney@devine-ent.com; or Trilogy Capital Partners, Financial Communications:
Ryon Harms, Toll-free: 1-800-592-6067, ryon@trilogy-capital.com

Organization Profile

DEVINE ENTERTAINMENT CORPORATION

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