News Release

Monday December 2, 2002 
T.S.X. Venture Exchange Trading Symbol: ECY
 
VANCOUVER, B. C., CANADA ------ David Dadon, Chairman of Yaletown Entertainment Corp. (the "Company") is pleased to make the following announcement:

YALETOWN ESTABLISHES NEW DIVISION WITH FIFTY FEATURE OUTPUT DEAL WITH PRODUCER LLOYD SIMANDL

Pursuant to a Memorandum of Understanding executed November 30, 2002 Yaletown has signed a five-year fifty picture deal with prolific Executive Producer, Producer, and Director Lloyd Simandl. Lloyd Simandl is the owner of North American Pictures s.r.o. which owns a film studio in Prague in the Czech Republic. Yaletown intends to establish a new, wholly owned division for these productions which will operate under the name and style of North American Releasing, the final name still to be determined. Lloyd Simandl will be lead producer for this division.

Production will begin in early December with six pictures under working titles Lash of the Scorpion, Chained Fury, A Season in Hell, Kiss of the Whip, Cold Warriors and Dark Rose. These titles have presales totaling $570,000 (US) all of which revenue will accrue to Yaletown�s new division.

Pursuant to the terms of the deal memo with Yaletown, Simandl will assign all author�s rights to the above noted feature film�s stories and scripts to Yaletown�s new division and thereafter all copyrights to all productions will be owned 100% by Yaletown�s new division. Further all presales agreements will be assigned to the new division.

In consideration of this exclusive arrangement Simandl will received 500,000 common shares of Yaletown after the expiration of 12 months, the completion of the first 10 features and the return to the new division of sales equaling 150% of production costs from each of the first five films.

Simandl�s extensive executive producer, producer and director�s credits include:

Ariana's Quest (2002); Chained Rage (2002); Cries of Innocence (2002); Age of Innocence (2002); The Final Victim (2002); The Starfire Mutiny (2002); Slave to Love (2001); Omega Force (2001); Dakota Bound (2001); Crackerjack 3 (2000); Last Stand (2000); Rage of the Innocents (2000); Fatal Conflict (2000); Lethal Target (1999); Act of War (1998); Dark Confessions (1998); Escape Velocity (1998); Hell Mountain (1998); Sleeping Dogs (1997); Dead Fire (1997); Crackerjack 2 (1996), Downdraft (1996); Dangerous Prey (1995); Crackerjack (1994); Heaven's Tears (1994); Time Runner (1993); Chained Heat II (1993); Shadowchaser (1992); Ultimate Desires (1992); Xtro II: The Second Encounter (1990); Empire of Ash III (1989); Slow Burn (1989); Empire of Ash II (1988); Possession (1987); Ladies of the Lotus (1986); and Autumn Born (1979); 

Chairman David Dadon proudly welcomes Lloyd Simandl and his production team to Yaletown.

Yaletown is a diversified entertainment company with three High Definition television series in continuing production. Yaletown also owns Post-Digital Works, a leading HD (High Definition) postproduction video facility which provides non-linear, digital video equipment and services (see www.post-digitalworks.com.) and Pinewood Recording Studios which provides digital audio services (see www.pinewoodsound.com) to the film and television community in the Pacific Northwest.

Pinewood Sound 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 II, Pretty Woman, and Spy Game. Pinewood was started by Geoff and Jean Turner 26 years ago and is the longest established, most comprehensive audio post facility in Western Canada. Geoff Turner has over 45 years as an audio engineer and mixer.

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

David Dadon, Chairman                         

THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE.