News Release

Monday, December 23, 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 SIGNS THREE PICTURE DEAL
JASON BOURQUE TO DIRECT �UNINVITED�

David Dadon, Chairman of the Company, is pleased to announce that the Company has signed a three picture deal with Gold Star Productions Inc. (www.goldstarprod.com) Pursuant to the terms of the deal memo signed Saturday December 21, 2002 Yaletown and Gold Star will produce three pictures over the next 24 months starting with the western horror/thriller Uninvited scheduled for March/April 2003. The pictures will be 100% owned and distributed by Yaletown.

Uninvited will be directed by a very talented young local director, Jason Bourque and Yaletown is proud to welcome Jason aboard the Yaletown production team. Jason, a Leo Award winner for Best Director, has directed 30 short films and music videos and recently completed the science fiction thriller Maximum Surge and the family disaster movie-of-the-week Wild Fire 7 which aired in November 2002 on PAX TV.

The cast for Uninvited will include Uninvited co-writer Dominika Wolski (Maximum Surge, Dark Angel) in the lead role of Virginia. The remainder of the cast will be announced as soon as they are finalized.

The management and staff at Yaletown wish all of our shareholders a safe and merry holiday season and urge all of our shareholders and any other interested investors to contact us at [email protected] to be added to our e-mail list to receive all of our important future announcements.

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.