PR Newswire via COMTEX

Jun 18, 2004 4:00:00 PM

HOLLYWOOD, Calif., Jun 18, 2004 /PRNewswire-FirstCall via COMTEX/ --

Film And Music Entertainment, Inc., (OTC: FLME), announced today it and Miracle Entertainment, Inc. (OTC: MEMI) have concluded a comprehensive settlement agreement that resolved all outstanding issues between the two film companies. As part of the agreement, FAME bought back 1,652,825 shares of it's common stock from Miracle which will be returned to treasury. FAME also received all remaining rights of Miracle to the film "Tournament of Dreams," currently in post production and a secured note in the amount of $50,000.

Concurrent to the agreement an effective working majority group of shareholders of Miracle has accepted the resignation of John Daly as Chairman and CEO of Miracle Entertainment. The group will immediately take over the day to day operations of the company and intends to shortly announce new officers and directors.

Mr. Daly will now devote his full time to FAME and FAME related feature films.

FAME is an independent production and distribution company, which emphasizes high quality, low and moderate cost, theatrical feature films.

Statements included within this press release that are not historical in nature constitute forward-looking statements for the purpose of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this press release contains certain such forward-looking statements that involve substantial risks and uncertainties. When used, the words "anticipate," "believe," "estimate," "expect," and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. There can be no assurance that the Company will be able to market, sell or deliver successfully its services inside or outside the United States, given risk factors including but not limited to unexpected changes in regulatory requirements, export restrictions, tariffs and other trade barriers, longer payment cycles, and fluctuations in currency exchange rates, any of which could adversely affect the Company's operations. There can be no assurance that one or more of these factors will not have a material adverse affect on the Company's current or future operations and consequently, on the Company's business, results of operations, and financial condition.

SOURCE Film And Music Entertainment, Inc.