Wilf Shorrocks, Peak's Chief Executive Officer, Comments on Children's Entertainment Industry

Wilf Shorrocks, Peak's Chief Executive Officer, Comments on Children's Entertainment Industry

NEW YORK, Sept. 27 /PRNewswire-FirstCall/ -- Peak Entertainment Holdings Inc., (BULLETIN BOARD: PKEH) , a fully integrated multimedia company dedicated to quality children's television entertainment, character licensing and consumer products, commented today on the initial success of its business strategy. Recent announcements see Peak building a strong platform to launch itself as a global player in the children's entertainment market.

On very limited financial resources, Peak has put together a strong portfolio of intellectual properties, which includes Muffin the Mule(TM), The Wumblers(TM) and Monster Quest(TM) and an excellent team that has developed the first wave of these IP's into episodes for animated television series. The Company has sold those shows in a number of territories to be broadcast over the next 12 months, including the US and UK.

"What makes this so exciting is when you consider that our fully integrated approach has a very limited field of competitors," commented Wilf Shorrocks, Chief Executive Officer of Peak Entertainment. "In the last decade it has become possible to create a world-class commercial success in the children's entertainment industry in just a year or two by coordinating a fully integrated multi-media marketing campaign around the release of shows with merchandising. This has been evidenced by the success of shows like Barney(TM), Teletubbies(TM), and Bob the Builder(TM), to name a few."

Shorrocks makes analogies with companies such as HIT Entertainment that built a business through the acquisition and exploitation of intellectual property from sales of $20 million in 1996 to $400 million in 2002. The success of Bob the Builder was an enormous factor in the overall sale of merchandise at retail over a 3-year period. With that success HIT acquired Barney and Thomas the Tank Engine(TM). Thomas the Tank Engine is a classic 70-year-old property that generated hundreds of millions of dollars in sales for its owners before its sale to HIT.

This is not an isolated occurrence in the children's entertainment industry; Ragdoll Productions (a near neighbor to Peak) turning over only a few million dollars in sales had a huge success bringing Teletubbies to market, generating over $3 billion in retail merchandising sales. In the US market a small production company called Saban, with sales at the time of less than $23 million, had a massive hit with Power Rangers(TM), and leveraging deals with Fox Network that resulted in the acquisition of Saban by the Family Channel, which was recently sold to Disney.

"I could elaborate with stories of Sponge Bob(TM), Dora the Explorer(TM) and Pokemon(TM), all multi-billion dollar properties, but I think I have shown why we feel Peak has potential," Mr. Shorrocks concluded. "Considering our current projects such as Muffin the Mule, a classic 60 year old character in the mould of Thomas the Tank Engine, already successfully airing on the BBC or, the Wumblers, a wonderful pre-school concept in the mould of Dora the Explorer, set to air with our partner 4Kids Entertainment of Pokemon fame in the Fall of 2006 in the US, gives reason enough for our management team and investors to be enthused at such an early and exciting state of our business."

About Peak Entertainment

Peak Entertainment Holdings Inc. is a fully integrated multimedia company dedicated to quality children's television entertainment, character licensing and consumer products. The Company's unique, fully integrated business model, which includes concept creation and branding, production of entertainment programmes, character licensing, and manufacturing and distribution of toys and related consumer products, gives it maximum quality control and speed-to- market while developing total brand equity. Peak's properties include Muffin the Mule(TM), Monster Quest(TM), The Wumblers(TM), Little Big Feet(TM), Countin' Sheep(TM), and Snailsbury's Tails(TM). For more information please visit the Company's website at http://www.peakentertainment.net/

Media & Investor Relations Contact: Dahlia A. Bailey (646) 283-5722 baileygroup@mac.com

Safe Harbor Statement

The foregoing, as well as other statements made by Peak, may contain forward-looking statements regarding Peak. The words and phrases "expect", "estimate", "anticipate", "believe" and similar expressions identify forward- looking statements. Such statements reflect, when made, the Company's current views, beliefs and expectations with respect to current events and financial performance, and are and will be, as the case may be, subject to significant risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of its financing arrangements; the Company's ability to obtain additional financing; the ability of the Company to obtain trade credit, and shipments and terms with vendors and service providers for current orders; the Company's ability to maintain contracts that are critical to its operations; potential adverse developments with respect to the Company's liquidity or results of operations; the ability to fund and execute its business plan; the ability to attract, retain and compensate key executives and associates; and the ability of the Company to attract and retain customers, as well as those discussed or identified from time to time in the Company's public filings with the Securities and Exchange Commission. Peak assumes no obligation to update or revise any forward-looking statements set forth in this news release, which speaks as of the date specified.

Source: Peak Entertainment Holdings Inc.

CONTACT: Media & Investor Relations: Dahlia A. Bailey, +1-646-283-5722, or baileygroup@mac.com

Web site: http://www.peakentertainment.net/

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