Magic Lantern Group Files 10k for the Year Ending December 31

Magic Lantern Group Files 10k for the Year Ending December 31



NEW YORK, April 21  /PRNewswire-FirstCall/ -- Magic Lantern Group, Inc. , a
leading North American distributor of educational content and e-learning
delivery with licensing operations in Canada and the U.S., announced today that
on April 14, 2004, the Company filed its Form 10-K, which is available at
http://www.sec.gov/. Included in the Form 10-K are financial statements audited
by Mahoney Cohen & Company, CPA, P.C. independent auditors, as of and for the
year December 31, 2003.  Mahoney Cohen & Company has issued an opinion with
respect to the financial statements that includes a qualification as to the
company's ability to continue as a going concern.

For the year ended December 31, 2003, Magic Lantern Group reported revenues of
$2.9 million compared to revenues of $386,000 for the year ended December 31,
2002. All revenues were derived from the Company's education and distribution
business. Significant events during the year included the launch of
TutorBuddy(TM), a state-of-the-art, e-learning system for home use by students
and parents. TutorBuddy has more than 1,600 learning video programs, indexed
into over 12,000 virtual clips of whole video programs. Targeting the
institutional market, in October, the Company launched Magic Lantern InSite(TM)
as an e-learning video service. In November, Magic Lantern Group sold its media
dubbing operations, Image Media, Inc., which has streamlined operations and
divested Magic Lantern Group from analog duplications services, a market the
Company deems as saturated and shrinking.

Magic Lantern Group President and CEO Bob Goddard stated, "As broadband
infrastructure to schools and homes continues to swell, Magic Lantern Group and
our digital products are strategically positioned to capitalize on the
tremendous, emerging demand for quality online educational content. On the
heels of our successful launch of TutorBuddy and InSite in Canada, we are
focused on expanding our products into the high-growth, digital streaming video
market in under-served international regions and the estimated $400 million
U.S. market. Intensive marketing and promotional programs, along with
distribution partnerships in the U.S. and abroad, are currently underway in
order to drive a strong, recurring revenue stream for the Company. We expect to
report an extremely strong first quarter of 2004, with our preliminary revenues
increasing by 75% compared to last year."

Goddard concluded, "Magic Lantern Group is in final negotiations with investors
to provide financing to cover the working capital deficit which led to the
going concern qualification. In addition, we are pursuing a merger and
acquisition strategy and diversifying into non-educational, next-generation
content delivery."

About Magic Lantern Group, Inc.

Magic Lantern Group, Inc. is a leading, global distributor of learning videos
serving more than 10,000 schools, libraries and social agencies in North
American and international markets. With 40,000 programs from 300 world-
renowned producers including Disney Educational Media, Schlessinger,
Annenberg/CPB and Dorling Kindersley, the Company's educational products
include Magic Lantern InSite, a digital streaming video product for schools,
libraries and universities and TutorBuddy, an at-home e-learning product for
students and teachers.

Leveraging its position as one of the most highly respected brands in video
educational delivery, the Company is pursuing multiple sales verticals to
maximize total revenues.  Magic Lantern Group operates three strategic
subsidiaries: Magic Lantern Communications, a global distributor of video
content to schools, universities and libraries; Magic Vision Digital Media
Inc., an emerging provider of on-demand sports entertainment, health and
corporate training digitized content; and Sonoptic Technologies, a leading
provider of online, next-generation digital technology solutions. For more
information, visit the Company's websites: http://www.magiclanterngroup.com/,
http://www.tutorbuddy.com/, and http://www.magiclanterninsite.com/. For more
information: For investor relations, contact Gary Geraci, National Financial
Network, 781-444-6100 ext. 629, email: . Also visit
http://www.nfnonline.com/gml. At the Company, contact Bob Goddard, Magic
Lantern Group, Inc., 905-827-2755 ext. 454, .

This Press Release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. The company
has tried, whenever possible, to identify these forward-looking statements
using words such as "anticipates," "believes," "estimates," "expects," "plans,"
"intends," "potential" and similar expressions. These statements reflect the
company's current beliefs and are based upon currently available information.
Accordingly, such forward-looking statements involve known and unknown risks,
uncertainties and other factors which could cause the company's actual results,
performance or achievements to differ materially from those expressed in or
implied by such statements. The company undertakes no obligation to update or
advise in the event of any change, addition or alteration to the information
catered in this press release including such forward-looking statements. 

DATASOURCE: Magic Lantern Group, Inc.



CONTACT: Gary Geraci of National Financial Network, [phone]

ext. 629, 



Web site:  http://www.magiclantern.ca/

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