News Release

Thursday, February 6, 2003
T.S.X. Venture Exchange Trading Symbol: ECY

VANCOUVER, B. C., CANADA ------ John Cumming, Chief Executive Officer of Yaletown Entertainment Corp., (the "Company") is pleased to make the following announcement:

GIANTS DISTRIBUTION ASSIGNS SALE PROCEEDS

Giants Entertainment Distribution Inc., a Nevada corporation owned by Lydia Dadon, has assigned to the Company sale proceeds from distribution agreements with Erfilm of Turkey and Central Partnership of Russia totalling U.S.$485,000 (C$756,600) in exchange for 945,750 shares at an agreed price of C$0.80 per share. Lydia Dadon is the wife of David Dadon, Chairman of Yaletown and therefore this transaction is subject to regulatory approval.

"This is a terrific display of David Dadon's confidence in the future of our company" commented President Mike Collier. "The personal investment is substantial and the share exchange price is over 160% of today's closing market price. This is very good for the Company and the shareholders."

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.

John Cumming, C.E.O.

Yaletown Entertainment Inc.

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

For further information: contact David Dadon, Chairman, or John Cumming, C.E.O., at (604) 689-7300, or by e-mail at [email protected] or check out our web site at www.yaletownentertainment.com.