News Release

Sunday, January 5, 2003
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:

PRIVATE PLACEMENT

David Dadon, Chairman of the Company, is pleased to announce that the Company has entered into a private placement agreement with Mountainside Pharmacy Ltd., owned by Mr. Riaz Mapara, pursuant to which Mountainside Pharmacy Ltd. will acquire 45,454 common shares from treasury at C$0.55 per share.

This placement 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

Yaletown Entertainment Inc.

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

For further information: Yaletown Entertainment Corp., Tel: (604) 669-3543, Fax: (604) 669-5149; www.yaletownentertainment.com