News Release

Tuesday, December 10, 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 EUROPEAN BRANCH
AND ADDITIONAL FINANCING

The Company announces that will it establish a western European division for the purpose of establishing Yaletown as a production presence in Europe and to secure feature film co-production opportunities with European producers. Swiss/Canadian director and producer Reto Salimbeni has agreed to join the company as managing director of this new division and will immediately establish a Yaletown Entertainment Corp. office in Zurich, Switzerland.

In addition, in consideration of 100,000 common shares, the Company has optioned from Mr. Salimbeni four original stories together with completed screenplays for theatrical release feature films to be delivered over the next five years. The Company will pay to Mr. Salimbeni 150,000 common shares for each accepted screenplay.

As part of this transaction Mr. Salimbeni will acquire 650,000 units at a price of $0.225 per unit, each unit to be comprised of one share and one two-year share purchase warrant exercisable at .28 per share.

This transaction is subject to completion of final documentation and regulatory approvals.

The Company further announces a private placement of up to 6,760,000 units at a price of $0.20 per unit, each unit to be comprised of one share and one two-year share purchase warrant exercisable at .27 per share.

This transaction is subject to regulatory approval.

Yaletown Entertainment Corp. is a diversified entertainment company combining an award winning production company with a complete High Definition video postproduction services division (see www.post-digitalworks.com) and a state-of-the-art digital audio postproduction services arm (see www.pinewoodsound.com) providing specialty services to the film and television industry in the pacific northwest.

For more information contact John Cumming, C.E.O., at 604-669-3543 or check out our web site at www.yaletownentertainment.com.

David Dadon, Chairman

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