News Releases

Cinemage Changes Management, Financing Strategies

The Company is also shifting its capital requirements for expansion to partnership agreements with Affiliates, and will therefore not proceed with its Private Placement announced January 10, 2005. Cinemage Financial Inc. is marketing Bonds in the RRSP Season to help finance equipment leasing, inventor production and related costs, while Media 2000 Productions (VCC) Corp. has again been included in the BC Government Tax Credit program, for tax assisted investment in digital image library expansion. The Cinemage Systems Limited Partnership meanwhile will continue under license its expansion of Print-Stations and Retail Order Entry station installations, with flow-thru tax losses to investors.

"Cinemage - as the Internet engine operator - is a Content Broker between image suppliers and print distributors", said Froese. "accepting uploads from digital image producers and delivering downloads to buyers, collecting the download fee in the process. The Company is the transaction processor in the middle, operating the enterprise on the Internet. From here its a numbers game; the greater the inventory of digital images in our library and the greater the number of print distributors, the greater our download traffic and revenue."

The Company plans to roll out its Retail Display Stations next, creating a Beta Install Base of order entry systems that refer the actual printing to an established Print Centre operating a Cinemage Print-Station. Based on a powerful Internet attached computer in a very compact case, with only a high resolution LCD display and keyboard attached, the system has a small footprint that can fit onto retail counters and into small display areas in high traffic locations where rental cost are prohibitive for larger Print-Stations.

"We are currently collecting sales statistics by our Dealers for 2004, as well as artist licensing and image production totals for the year", added Froese. "We expect to release these later in the month of February."

Cinemage trades on the TSX Venture Exchange under the symbol "CIG".

THE TSX VENTURE EXCHANGE INC. HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This News Release contains certain "Forward-Looking Statements". All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.