Muffin the Mule(TM) Canters Onto the Newsstand

Muffin the Mule(TM) Canters Onto the Newsstand

Returning kids character hits pre-school TV top spot as official magazine is launched

NEW YORK, Oct. 20 /PRNewswire-FirstCall/ -- Peak Entertainment Holdings Inc., (BULLETIN BOARD: PKEH) , a fully integrated multimedia company dedicated to quality children's and family television entertainment, character licensing and consumer products, reports the launch of the official Muffin the Mule magazine later this month. Reports indicate the reborn BBC character is already the number 1 UK pre-school program, beating current hits like Pingu and The Tweenies in the UK. Peak has licensed the rights to publish the magazine to Future Publishing Ltd.

Muffin the Mule magazine, aimed at 2-5 year olds, will hit the newsstands on Thursday October 27th. The launch marks Future's first entry into the pre- school sector. Published every three weeks, the magazine will continue the adventures of Muffin -- whose new cartoon is currently showing four times a day, across BBC Two and digital channel CBeebies.

Promoting traditional values, Muffin the Mule magazine takes an educational yet fun approach to problem solving, puzzles and other activities for young children. The launch issue of the 32-page magazine features three exciting Muffin stories, and a make-it-yourself Monty the Monkey mask. The magazine also includes coloring-in, dot-to-dot pictures, maze puzzles and a memory game.

Issue one of Muffin the Mule magazine comes with a horse-shoe paint set and a 16-page coloring book, offering kids the chance to color in Muffin and his pals, including Oswald, Peregrine and Peter.

Alan Shorrocks, Licensing Director for Peak Entertainment, commented, "Future is a major driver and provides Peak with instant access to our core target consumer via the newsstand. From experience the exposure anticipated from over 100,000 readers each month will quickly establish a bond with children and parents that we will use effectively to build our initial brand strategy for Muffin in the UK."

Mike Lamond, Publisher of Future plc, added, "We are delighted to be working with Peak Entertainment. Future knew that Muffin would be a hot property in the pre-school sector, and the excellent viewing figures for the show proving he can compete in 2005. Editor Scott Cavan and the team have put together a fantastic magazine that sticks to the core values of the TV show. Alongside Jetix Magazine, the official magazine for the popular kids' TV channel, Muffin the Mule is a fantastic addition to our stable of titles and will be joined by further licensed launches in 2006."

Muffin the Mule magazine goes on sale Thursday October 27th, with a cover price of 1.75 pounds Sterling ($3.07). Peak is to receive 6% royalties on gross retail sales of the magazine after the first six issues.

About Future

Future plc was founded in the UK in 1985. Today, it publishes over 150 special-interest consumer magazines worldwide with strong portfolios in the computing, games, music, automotive, sports, crafts and leisure sectors. It is the fifth largest magazine publisher in the UK. Future employs 1,450 people in offices in the UK, US, France and Italy. Over 100 international editions of Future's magazines are also published under license in 30 other countries across the world. The company is listed on the London Stock Exchange (symbol FUTR).

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 programs, 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. Peak is the licensing agent for Muffin the Mule merchandise. 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, +1-646-283-5722, baileygroup@mac.com

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

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