Cosmo Communications Corporation (CSMO.PK) Announces Significant New Business Relationships

Cosmo Communications Corporation (OTC: CSMO) ("Cosmo") today announced significant new business and product licensing relationships and announced the retention of a financial advisor to advise it in connection with strategic alternatives which may be considered by the Board of Directors of Cosmo in light of its current short-term growth prospects.

Cosmo currently intends to expand its product line by supplying home improvement products supplied by Cosmo's controlling shareholder, Starlight International Holdings Ltd. ("Company" or "Group"), under the terms of a license agreement with Hyundai Corporation, which Cosmo will distribute on behalf of the Company within the United States; and has established new business relationships with several major national American retail chains for sales of its existing product line within the United States.

Commenting on these developments, Mr. Lau Sak Hong, Cosmo's Chairman, remarked, "We believe that these significant new relationships with several well known major national American retail chains will allow Cosmo to dramatically increase sales of our existing consumer electronics product lines within the United States." He went on to say, "As a result of these new relationships and other ongoing new product initiatives relating to the Group's license agreement with Hyundai Corporation, we would expect Cosmo revenues in its fiscal year ending March 31, 2007 to experience substantial growth."

Additionally, Cosmo announced that it has retained Cove Partners LLC as its American financial adviser to advise it in connection with strategic alternatives which may be available to Cosmo as a result of Cosmo's new business relationships and short-term growth prospects.

Certain statements contained herein relating to Cosmo Communications Corporation and/or Starlight International Holdings Ltd. (collectively "Cosmo" or the "Company") contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Act of 1934. All forward-looking statements included herein are based on information available to the Company as of the date hereof and the Company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve known or unknown risks, uncertainties and other factors, which may cause the Company's actual results, performance or achievements expressed or implied, or industry results to be materially different from any actual future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: fluctuations in Company operating results; continued new product introductions and market acceptance of the Company's new products; new product introductions by competitors; and other factors including, but not limited to, the items discussed under "Risk Factors" contained in the Company's report on Form 10-K for the year ending March 31, 2005 as well as in its Form 10-Q for the fiscal quarter ending September 30, 2005.

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