Knightscove Media Corp announces completion of $600,000 loan

KCMDF) ("Company", "Knightscove" is pleased to announce
the completion of a loan ("Loan") in the principal amount of $600,000 provided
by GC-Global Capital Corp. ("Global"), a Toronto based financier. The Loan
will bear interest at 12% per annum, payable monthly and incur a structuring
fee of 2% at closing. The Loan has been conditionally approved by the TSX
Venture Exchange.
    The Loan is secured by a first ranking security interest in favour of
Global on Knightscove's assets including all rights to the KEC library
(including the feature films 'Virginia's Run', 'Kart Racer' and 'Blizzard')
and a second ranking security interest in favour of Global on Morningstar's
assets including rights to its DVD library. The Loan is repayable on
March 15th, 2008, however Knightscove has the right to pre-pay the Loan at any
time prior to that date.
    As consideration for Global's agreement to provide the Loan, the Company
has agreed to issue 200,000 common shares of Knightscove, at a deemed price of
$0.30 per share, subject to the final acceptance of the TSX Venture Exchange
and compliance with all applicable securities laws. The shares issued will be
subject to a 4-month hold period to January 27th, 2008.
    The Loan proceeds will be used by Knightscove to make its final payment
to Kaleidoscope Entertainment for the acquisition of Morningstar as well as
general corporate purposes and future acquisitions.

    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. With the acquisition of
Morningstar , one of Canada's leading independent home entertainment
distribution companies in the home video and DVD markets, 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.
    With the issuance of 200,000 common shares to Global, Knightscove will
have 19,495,808 common shares outstanding. Additional information regarding
the business of Knightscove may be found on, on SEDAR at 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) 691-6655 ext 267; Porter, Levay & Rose, Michael
Porter, President or Linda Decker, (212) 564-4700

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