Gener8Xion Entertainment, Inc. Signs Letter of Intent to Acquire Cinemills

Gener8Xion Entertainment, Inc. Signs Letter of Intent to Acquire Cinemills

LOS ANGELES, Aug. 3 /PRNewswire-FirstCall/ -- Gener8Xion Entertainment, Inc. (BULLETIN BOARD: GNXE) , announced today that it has signed a Letter of Intent to acquire MERD HOLDINGS, LLC, a California Limited Liability Corporation doing business as Cinemills ("Cinemills")(www.cinemills.com). The transaction is expected to close on or before August 31, 2005.

Gener8Xion is acquiring Cinemills in exchange for 100,000 shares of Gener8Xion common stock and the assumption of liabilities not to exceed $1.0 Million. The deal is subject to final audit and the signing of the definitive agreement. Romina Malek, CEO and President of Cinemills has agreed to sign a three year employment contract and remain as President of Cinemills which will become a wholly owned subsidiary of Gener8Xion Entertainment and its name and brand will remain the same.

"I believe Cinemills will thrive under the Gener8Xion infrastructure and sell its product line to an entirely new demographic," stated Romina Malek. "The addition of Cinemills marks the beginning of our campaign to grow through acquisition. Having been on the forefront of awakening Hollywood to the hungry sleeping giant that is this country's faith-based community, it's great to see how the pastors and leaders of the some 600,000 churches in America are finally awakening to this vision as well. So many are embracing media as their next frontier and have determined that they need the finest in mainstream production and communication tools to be truly effective. We're excited to be able to meet these needs and facilitate their vision," explained Matthew Crouch, CEO and Chairman of the Board of Gener8Xion Entertainment, Inc.

Cinemills, a privately held company, has been providing motion picture equipment for over 25 years. The company has established itself as a premier manufacturer of high quality motion picture and studio lighting equipment and accessories. With this acquisition, Gener8Xion Entertainment, Inc. plans to diversify and expand its revenue base by providing a full spectrum of motion picture, stage and studio equipment, via sales, rental and lease to churches, ministries, television stations, major studios and independent production companies across globe, facilitating the equipment to internal productions as well.

Gener8Xion Entertainment, Inc. (www.8x.com) is an independent entertainment company in the development stage which is engaged in the financing, production, distribution and development of "family based" feature films, television programming, animation and documentaries. It's most current project is the soon to be released epic two-part theatrical motion picture "One Night With the King" (www.8x.com/onenight) featuring such stars as Peter O'Toole, Omar Sharif, John Noble, John Rhys-Davies, James Callis, Luke Goss and newcomer Tiffany DuPont.

This news release includes certain forward-looking statements (all statements other than those made solely with respect to historical fact) and the actual results may differ materially from those contained in the forward-looking statements due to known and unknown risks and uncertainties. Any one or more of several risks and uncertainties could account for differences between the forward-looking statements that are made today and the actual results, including with respect to our sales, profits, liquidity and capital position. These factors include, but are not limited to: risks relating to our ability to satisfy regulatory requirements with respect to our internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002, which requires us to perform an evaluation of our internal controls over financial reporting and have our auditor attest to such evaluation; softness in the general retail environment or in the markets for our products; the timing and acceptance of products being introduced to the market; the level of product returns experienced; the level of margins achievable in the marketplace; the collectibility of accounts receivable; the recoupment of royalty advances; the effects of acquisitions or dispositions, the financial condition of our customers and suppliers; the realization of inventory values at carrying amounts; our access to capital; the outcome of any future Internal Revenue Service audits; and the realization of income tax and intangible assets. These conditions cannot be predicted reliably and the Company may adjust its strategy in light of changed conditions or new information. Gener8Xion Entertainment, Inc. disclaims any obligation to update forward-looking statements. For further information, please contact, Vice President, Marcos M. De Mattos of Gener8Xion Entertainment, Inc., +1-323-874-9888. Gener8Xion Entertainment, Inc. is located at 3400 Cahuenga Boulevard, Hollywood, CA 90068.

Source: Gener8Xion Entertainment, Inc.

CONTACT: Marcos M. De Mattos, Vice President of Gener8Xion Entertainment, Inc., +1-323-874-9888

Web site: http://www.8x.com/ http://www.cinemills.com/

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