Cassandra Group Investors Complete $4.1 Million Private Equity Financing in Paradise Music & Entertainment

Business Wire, July 16, 1999

NEW YORK--(BUSINESS WIRE)--July 16, 1999--

Paradise Music & Entertainment, Inc. (NASDAQ:PDSE) announced today that it has completed a $4.1 million equity financing with private investors represented by The Cassandra Group, Inc. The Cassandra investors purchased 970,880 Paradise common shares at $4.25 per share.

The Company also stated that it is considering possible changes in or additions to the previously announced $4 million Cassandra follow-on financing after it completes a comprehensive review of the needs of its acquisition program and its overall capital requirements. Upon completion of this review, the Company will finalize the terms and amounts of the additional Cassandra financing, as well as the raising of additional capital from other sources, consistent with then prevailing market conditions.

Cassandra Group President Dana Giacchetto, said, "Paradise continues to establish itself as a unique, entrepreneurial and artist-friendly Company. Importantly, they are also focused on enhancing long-term shareholder value in the artistic community, and we remain excited and optimistic about the Company's prospects."

Paradise Chairman and Chief Executive Jesse Dylan, commented, "This investment by the Cassandra Group and its investors demonstrates their ongoing support of Paradise and its strategic growth plan. We have identified a range of complementary acquisition opportunities that will extend our presence in the music and television industries. We intend to work closely with The Cassandra Group and its President Dana Giacchetto to ensure Paradise has access to sufficient capital to fund both our internal and external growth initiatives. This financing represents a further step forward in this process."

Paradise Music and Entertainment, Inc. is an artist-centric producer of music, entertainment and media content. Its divisions include (i) PUSH Records (independent record label teamed with V2 Records), (ii) Picture Vision (film, television and music video production company), (iii) All Access Entertainment Management Group, Inc. (music artist management), and (iv) Rave Music (commercial music/film score producer). Paradise has also agreed to acquire Straw Dogs (television commercial production company) subject to execution of definitive agreements and stockholder approval.

This news announcement may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements. The forward-looking statements contained herein represent the Company's judgment as of the date of this report hereof, and the Company cautions readers not to place undue reliance on such statements.