News Release

MERGER WITH PINEWOOD SOUND

Pursuant to a Memorandum of Understanding executed October 24, 2002 the owners of the recording studios Pinewood Sound, Jean and Geoff Turner have agreed to merge their company with Yaletown. This merger will establish Yaletown as a fully vertically integrated production company capable of providing complete production, video postproduction and audio postproduction services.

Both Geoff and Jean Turner will remain with Pinewood in their present capacities as President and General Manager respectively for not less than three years. Yaletown C.E.O. John Cumming will join Pinewood as Chairman.

Geoff Turner has over 45 years as an audio engineer and mixer. Pinewood was started by Geoff and Jean Turner 26 years ago and is the longest established, most comprehensive audio post facility in Western Canada. With studios in downtown Vancouver and in Lions Gate Studios in North Vancouver, Pinewood recently underwent a massive renovation upgrading all of its studios to full Dolby 5.1 digital mixing consoles and 32 track, 24 bit editing suites.

Pinewood�s clients include such Hollywood heavyweights as Disney, MGM, Universal, Paramount, Warner Bros, 20^th Century Fox, Columbia Tristar and Dreamworks, CBS, NBC, CBC, ABC and numerous independents.  

Recent film credits include such major productions as Lord of the Rings � The Two Towers; Insomnia; 40 Days and 40 Nights; The Bourne Identity; Tomb Raider; Pearl Harbour; Planet of the Apes; Mission Impossible I,I Pretty Woman, and Spy Game. Pinewood also provided audio services to The Mummy an Academy Award Nominee for Best sound, and to U-571, the Academy Award Winner for Best Sound.  For a complete list of credits and particulars on the services of Pinewood go to their web site at www.pinewoodsound.com

Recent television credits include such well known titles as Dark Angel; Smallville; Touched by an Angel; Dawson�s Creek; The X Files and over 100 episodes of Yaletown�s own High Definition format Weird Homes, Weird Wheels and Weird Weddings series.

�I have worked with Pinewood for over 15 years� commented Yaletown president Mike Collier �and I am both pleased and proud to welcome Geoff and Jean Turner and their Pinewood facility to our team. Our united resources establish Yaletown as a fully vertically integrated producer while each of the audio and video postproduction units continue to operate as distinct entities providing top quality postproduction services to the film and television community.�

Yaletown also owns Post-Digital Works, a leading HD (High Definition) post production facility which provides non-linear, digital video equipment and services. See www.post-digitalworks.com.

This transaction is subject to final documentation and to required regulatory approvals.

David Dadon, Chairman