Magic

[MWM]

Grand Entertainment & Music, Inc. Announces Additional Share Retirements
Thursday November 2, 7:00 am ET


MONTREAL--(MARKET WIRE)--Nov 2, 2006 -- Grand Entertainment & Music, Inc. (Other OTC:GMSC.PK - News) announces that it has entered into additional agreements with current and former consultants to further reduce the total outstanding share count.
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In a corporate press release dated October 26th, Grand Entertainment announced that it would be retiring over 40 million shares back into treasury. These shares have been sent to the transfer agent for cancellation. This action will reduce the outstanding share count to approximately 385 million. In addition to these shares, the company is pleased to be announcing that it has successfully negotiated the retirement of an additional 64,130,499 shares. All agreements and documents are being finalized and are in the process of being sent to the transfer agent. This move will reduce the total outstanding share count by more than 15%. The company anticipates announcing similar retirement agreements in the near future.

President Fred Berlin stated, "As we announced last week, I have been meeting with several key players to discuss our strategy for the future of Grand Entertainment. We are continuing our promise to bring down the outstanding share count, and we are committed to increasing shareholder value. We will continue to retire shares until we reach our goals outlined in last week's newsletter."

About Grand Entertainment & Music, Inc.

Based in Montreal, Canada and incorporated in November 1998, the Company is an independent music entity that produces, promotes, markets and controls the copyrights on music recordings in multiple formats. Additionally, the Company's multi-million dollar studio, Cherry Studios, has produced voice-overs and sound tracks for commercials and film. In addition, Cherry Studios has also produced thousands of recordings and has to its credit a total of 23 gold and platinum albums. GEM has recently found success in the reggaeton market with its signature artist, Qbanito. Qbanito's debut album has already generated a #1 hit in Canada and is currently being marketed by Universal Music in Europe. Grand Entertainment also controls exclusive rights to vast catalogues of previously unreleased recordings from Cuban music archives. In addition to these assets, the company will focus on growth through acquisitions over the next twelve months in an effort to reach its mission of becoming a premier production, recording, publishing, and Internet distribution company.