Muffin the Mule(TM) Ranked Number 1 Pre-School Program in the UK According to BARB/DGA

Muffin the Mule(TM) Ranked Number 1 Pre-School Program in the UK According to BARB/DGA

NEW YORK, Oct. 18 /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, today reported that Muffin the Mule was ranked the number 1 pre-school program in the top local markets in the United Kingdom. The findings were derived from the BARB/DGA local survey.

The survey included the top 25 pre-school programs, targeting children between the ages of 4 to 6 years old residing in multi-channel and free-to-air digital homes. Viewing channels included CBeebies and Nick Jr., with Muffin reaching 21.66 percent of their local viewing audiences.

Peak has been granted worldwide broadcast and merchandising rights to Muffin the Mule from Maverick Entertainment. In return for handling rights, Peak is entitled to a 35% commission in UK (40% in the rest of the world) from gross royalty receipts from both merchandise and broadcast sales.

"Muffin the Mule has successfully built an effective presence as the program of choice for our local markets," said Phil Ogden, Managing Director of Peak Entertainment Holdings Inc. "After 60 years, the BBC's classic children's favorite Mule has proven that the old ones definitely are the best. We have broadened our reach by knowing our audience's consumption, knowing that our viewers are searching for the most educational and stimulating programming available for their children."

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 terrestrial portal BBC2 and their digital channel CBeebies 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 proposition.

About Maverick Entertainment

Maverick Entertainment Group plc ("Maverick"), the AIM listed company specialising in the creation, acquisition and development of IPR in children's films, television programmes, characters and related entertainment products. Mavericks' Intellectual Property Rights portfolio includes children's icon Muffin the Mule and Snailsbury Tails. Its publishing division represents characters such as Bananas in Pyjamas, Hairy Maclary, Fairly Odd Parents, 64 Zoo Lane and the Nelvana Home Video Catalogue. Muffin the Mule was the UK's first children's TV character, making his BBC premiere on 20 October 1946. Hugely successful in the 50s and 60s and now very much part of English heritage, he is due to return to the screens in 2005, just in time for his 60th birthday. Maverick will initially produce forty, 10 minute episodes to transmit on the BBC in 2005 and 2006. The animation team for Muffin was also behind the successful Snailsbury's Tales, shown on Cbeebies and CBBC last year and due to air again this year. For more information log onto (http://www.maverickentertainment.com/)

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

CONTACT: Dahlia A. Bailey, +1-646-283-5722, baileygroup@mac.com, for Peak Entertainment

Web site: http://www.baileygroup.biz/

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