Magic Lantern Group Posts Strong Revenue Growth in the Third Quarter

Magic Lantern Group Posts Strong Revenue Growth in the Third Quarter 


NEW YORK, Nov. 18  /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 its
financial results for the quarter ended September 30, 2003.

For the three months ended September 30, 2003, Magic Lantern reported sales of
$655,000 compared to $0 in the three months ended September 30, 2002. Net loss
for the three months ended September 30, 2003 was $(579,000), or $(0.01) per
share, compared to net earnings of $862,000, or $0.02 per share, in the first
three months of 2002. Net gains in the third quarter of fiscal 2002 were
primarily attributed to a $937,000 compensation adjustment from replacement
options. Diluted shares outstanding for the third quarter of 2003 were 66.7
million compared to 37.4 million diluted shares outstanding in the third quarter
of 2002.

For the nine months ended September 30, 2003, sales increased to $2,181,000 from
$21,000 in the first nine months of 2002. Net loss for the nine months ended
September 30, 2003 was $(851,000), or $(0.01) per share, compared to net
earnings of $224,000, or $0.01 per share, for the first nine months of 2002,
largely reflecting a one-time gain on the settlement of litigation in the third
quarter of 2002.

Magic Lantern Group President & CEO Bob Goddard stated, "We are pleased to
report strong revenue growth in the third quarter of 2003, which was attributed
to increased sales of our educational and learning videos in VHS and DVD format.
While our video business remains strong, we continue to make inroads into the
high-growth, digital video streaming market. One of our most significant
accomplishments supporting this initiative included the launch of
TutorBuddy(TM), our revolutionary e-learning consumer product, on a worldwide
basis. In September, we began marketing TutorBuddy to schools and Parent
Advisory Councils across Canada, targeting up to 500,000 households with a trial
subscription offer for $9.95 per month. Leveraging our brand equity in the
Canadian educational sector, we expect TutorBuddy to drive incremental top-line
growth for us over the next several quarters."

Goddard continued, "We are equally excited to achieve increased market
penetration in the institutional sector with our Magic Lantern InSite(TM)
product line.  InSite continues to gain traction in key markets for us,
including universities and schools in Canada. We have secured agreements to
deploy InSite into Canada's schools and are quickly moving to market the product
via channel partnerships into the U.S.

"Magic Lantern Group is in a unique position to capitalize on the increased
usage and popularity of digital video streaming technologies and educational
content in schools, universities and libraries, both nationally and in Canada.
We look forward to increasing revenues from these exciting new product lines,
which offer the potential for us to build a solid recurring revenue base and
accelerate our time to profitability."

About Magic Lantern Group, Inc.

Magic Lantern Group, Inc. is a leading North American learning video distributor
with licensing operations in North American and world markets. Through its video
streaming technology business and its specialized "video indexing" subsidiary,
Sonoptic Technologies Inc., the Company currently serves more than 9,500 schools
and libraries throughout Canada and soon in the U.S.

In addition to distributing more than 40,000 school curriculum-relevant video
titles from over 300 world-renowned producers including Disney, Schlessinger
Media, Annenberg/CPB & Dorling Kindersley, Magic Lantern is penetrating the
institutional market with Magic Lantern InSite(TM). Magic Lantern InSite
provides teachers and students on-demand, interactive access to an expanding
video collection of over 1,300 program titles and nearly 14,000 video objects.
The Company is concurrently reaching the consumer market with TutorBuddy(TM),
its proprietary e-learning system that provides children with online access to
learning video programs used in schools across North America. For more
information on the Company, visit http://www.magiclantern.ca/.

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, . Also visit http://www.magiclantern.ca/.

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, National Financial Network, [phone] ext.

629, ; or Bob Goddard, Magic Lantern Group, Inc., +1-905-

827-2755 ext. 454,  



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

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