BB's Coffee & Muffins Offers Classic Collectibles and 'Healthier' Meal Options Based on the Characters of Muffin the Mule(TM)

BB's Coffee & Muffins Offers Classic Collectibles and 'Healthier' Meal Options Based on the Characters of Muffin the Mule(TM)

Muffin the Mule New Animated Series Can Be Seen Daily On BBC2 and the CBeebies Channel

NEW YORK, Oct. 25 /PRNewswire-FirstCall/ -- Peak Entertainment Holdings Inc., (BULLETIN BOARD: PKEH) , a fully integrated multimedia company dedicated to quality children's and family entertainment, character licensing and consumer products, announced today that they have partnered with BB's Coffee & Muffins, a leading retailer and speciality coffee franchise with more than 100 locations in the United Kingdom, to bring the cherished character of Muffin the Mule to "healthier" children's meal options throughout the UK. Peak is the licensing agent for Muffin the Mule merchandise.

"This is a great opportunity for Peak. Partnering with BB's Coffee & Muffin will allow us to reach a much wider market," said Phil Ogden, Managing Director of Peak Entertainment Holdings Inc. "By incorporating Muffin the Mule characters into BB's product line, we are confident that the success of the Muffin the Mule television series will not only increase sales for both companies but will also allow us to broaden our licensing outreach."

With schools back in session, this is the perfect time to introduce the Muffin the Mule line of healthy muffins and drinks. Young guests enjoy some of their favorite food choices along with popular collectibles such as the Muffin Kids' Coloring Sheet and the Muffin the Mule Box.

"We have spent some time in stores talking to parents of young children to see what more we can do differently to cater to kids," said a BB's representative. "Many mums like us to offer what they consider 'healthier options' for children so we have some new product opportunities to compliment the Muffin the Mule character endorsement."

Guests now have the opportunity to enjoy additional food choices from a range of products featuring Muffin the Mule characters. Fruit mini muffins, because Muffin is a keen fruit eater, and the Muffin's Muffin and Polka Dot Muffin addition to BB's main product line. In addition, parents will be able to purchase mini-sized water with the Muffin the Mule series' characters.

Beginning now through December 2006, a new line of DVD's featuring 10 adorable stories about Muffin the Mule and his friends, as well as a hard-back annual has made their way onto retail store selves in the UK.

About Muffin the Mule

Muffin the Mule(TM), based on the hugely popular BBC (British Broadcasting Company) series in the 1940's and 50's, is a new animated television series, which targets children between the ages of 2 and 5 years old. The series has been commissioned for broadcast by the BBC and launched on the UK's premier terrestrial children's portal CBBC (Children's BBC) on September 5, 2005.

Muffin the Mule has a place in British television history as the first ever TV character brand and the new show is a modern adaptation of the original concept. The producers have worked closely with the BBC to retain the same subject matter and core values of fun, friendship and loyalty, qualities that are as relevant and entertaining today as they were originally.

Muffin the Mule celebrates his 60th anniversary in 2006 and the activity planned to commemorate the first 'star' of British television will be a major factor in re-awakening parents' and grandparents' affinity with their childhood icon. This usually results in a whole new audience being introduced to the rich depth of characters associated with these unique classic brands. Further, the anticipated interest from retailers who continue to nurture the trend in consumer retro-brand confidence is expected to deliver a platform to establish an international classic brand.

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 Monster Quest, The Wumblers, Little Big Feet, Countin' Sheep, and Snailsbury's Tails. 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: Dahlia A. Bailey for Peak Entertainment Holdings Inc., +1-646-283-5722, baileygroup@mac.com

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

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