AgU Entertainment Corp. Announces Agreement to Sell Property for $15 Million

AgU Entertainment Corp. Announces Agreement to Sell Property for $15 Million

LAUDERDALE LAKES, Fla., Sept. 9 /PRNewswire-FirstCall/ -- AgU Entertainment Corp. (BULLETIN BOARD: AGUE) ("AgU"), an emerging entertainment company and parent company of THE TUBE Music Network, Inc. ("THE TUBE"), announced today it has entered into an agreement to sell its primary 4 acre facility and approximately 23 acre property, to Tarragon South Development Corp. for $15 million. Tarragon intends to develop the land for commercial and residential use. In connection with the Agreement for Purchase and Sale with Tarragon, the Company also entered into a letter agreement, pursuant to which Tarragon agreed to provide a bridge loan of $2.5 million to the Company, upon certain conditions being met, to be advanced as a third mortgage secured by the real estate. Net proceeds from the bridge loan plus the net proceeds from the sale of the property will be used to fund the working capital needs of the Company, the continued development and rollout of THE TUBE, the e-commerce platform and for general corporate purposes. Completion of both the sale and bridge loan transactions are subject to customary closing conditions. AgU anticipates the sale of the property will close by the end of December 2005.

David Levy, President of AgU commented, "The property being sold is not a part of the growth plans of AgU. The sale of the property will improve our balance sheet and should have a positive effect on our ability to obtain favorable financing for future growth. Our full attention is on the growth of THE TUBE and particularly expanding the reach of THE TUBE into additional U.S. households and major markets throughout the Country."

About AgU Entertainment Corp. ("AgU")

AgU is an entertainment company with two core businesses: THE TUBE Music Network, Inc. ("THE TUBE"), and AgU Music, Inc. THE TUBE is the only all- music channel on television and broadcasts advertiser-supported promotional programming derived from music videos and DVD material. Designed to appeal to the economically powerful 35+ age group, proposed direct sales and e-commerce components will enable the audience to "See it, Hear it, Buy it", immediately, by telephone or via the Internet. AgU Music is a boutique record label engaged in the release of recorded music through artist signings and acquisitions.

Forward-Looking Statements

This press release may include a number of "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management's current views with respect to future events and financial performance and include statements regarding management's intent, belief or current expectations, which are based upon assumptions about future conditions that may prove to be inaccurate. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, involve risk and uncertainties, and that as a result, actual results may differ materially from those contemplated by such forward- looking statements. Such risks include, among other things, the volatile and competitive markets in which we operate, our limited operating history, our limited financial resources, our ability to manage our growth and the lack of an established trading market for our securities. When considering forward- looking statements, readers are urged to carefully review and consider the various disclosures, including risk factors and their cautionary statements, made by us in our reports filed with the Securities and Exchange Commission.

Source: AgU Entertainment Corp.

CONTACT: Evan Smith, CFA, +1-212-850-5606, esmith@fd-us.com or Erica Pettit, +1-212-850-5614, epettit@fd-us.com, both of Financial Dynamics, for AgU Entertainment Corp.

Web site: http://www.aguent.com/

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