Knightscove Media Corp. announces completion of $400,000 bridge loan

("Company", "Knightscove" ) is pleased to announce the
completion of a bridge loan ("Loan") in the principal amount of $400,000
provided by two high net worth individuals ("Creditors"). The Loan will bear
interest at 18% per annum, payable monthly and incur a structuring fee of 3%
at closing. The Loan has been approved by the TSX Venture Exchange.
    The Loan is secured by a first ranking security interest in favour of the
Creditors on Knightscove's assets including all rights to its library
(including the feature films 'Virginia's Run', 'Kart Racer' and 'Blizzard')
and a second ranking security interest in favour of the Creditors on
Morningstar's assets including rights to its DVD library. The security is
ranked pari passu with the Company's existing short term debt held by
GC-Global Capital Corp. ("Global"), a Toronto based financier. The Loan has a
term of one year, however Knightscove has the right to pre-pay the Loan at any
time prior to that date.
    The use of proceeds from the Loan have been directed to new business
acquisitions as well as a partial repayment of the Company's existing short
term loan with Global. Knightscove's remaining loan with Global in the amount
of approximately $345,000 has been extended to August 15, 2008. Additionally,
the Company has entered into a consulting arrangement with Global for which it
will issue 370,000 subordinate voting shares at a deemed price of $0.23,
subject to the final acceptance of the TSX Venture Exchange and compliance
with all applicable securities laws. Additionally, Knightscove will issue
128,571 subordinate voting shares in consideration of a consulting fee in the
amount of $45,000 owing to Lane Capital Markets ("Lane") at a deemed price of
$0.35 per subordinate share, subject to the final acceptance of the TSX
Venture Exchange and compliance with all applicable securities laws. The newly
issued subordinate shares will be subject to a 4-month hold period to October

    About Knightscove and Morningstar:

    Knightscove Media Corp. along with its wholly owned subsidiaries,
Morningstar Entertainment Inc. ("Morningstar") and Knightscove Family Films
Inc., is an integrated Canadian entertainment company specializing in the
distribution, acquisition and creation of high quality live-action feature
films and television productions for the whole family. Morningstar is one of
Canada's leading independent home entertainment distribution companies,
Knightscove has executed the first step in its strategy to distribute family
film product to the theatrical, home video/DVD, pay, specialty and free
television markets in North America and internationally. Established 15 years
ago, Morningstar has over 1,400 titles in its DVD library.
    Knightscove currently has 9,747,904 subordinate voting shares (KC.A) and
9,747,904 multiple voting shares (KC.B) outstanding. With the issuance of
370,000 and 128,571 subordinate voting shares respectively to Global and to
Lane, Knightscove will have 10,246,475 subordinate shares outstanding.
Additional information regarding the business of Knightscove may be found on, and on

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

For further information:

For further information: Knightscove Media Corp., Leif Bristow,
President and CEO, (416) 444-7900 x222 or Annette Grot, VP Finance, (416)
444-7900 x231; Spinnaker Capital Markets Inc., Ali Mahdavi, Partner, (416)

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