PKG Entertainment (fka PKGN)

[sublime]

Friday, February 10 2006 3:27 PM, EST..1:3000 R/S

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PKG Entertains Thoughts of Life After Pink; PKG Adopts Resolution to Safeguard Mission and Protect Shareholder Value
Business Editors

DENVER--(BUSINESS WIRE)--Feb. 10, 2006-- PKG Entertainment (Pink Sheets: PKGE) announced today that it has contacted both NASDAQ and AMEX about re-filing to stabilize PKG's share value. Towards this goal, the PKG Board has approved a resolution to implement a reverse stock-split which should tighten PKG's trading market by limiting share availability while increasing the share price significantly to represent share value levels that properly reflect PKG's recent success and valuation. The reverse is expected to produce an attractive capital structure for the investment community, allowing PKG to continue funding its business at a reasonable cost and better valuations.

The reverse-split should be effective beginning February 16, at which time PKG's common stock will trade as adjusted for the reverse split. As a result, each 3000 shares of common stock is exchanged for one share of common stock and the total number of shares outstanding will be reduced from approximately 5.35 billion shares to approximately 1.78 million shares.

"The Board has carefully considered several options, but because the current trading price is not reflective of recent progress made in operations we had to take action. The Board needed to act decisively in hopes that investors take advantage of this positive corporate restructuring, which places a focus on recent company developments. Management has done a thorough job over the last eighteen months positioning the company for future growth. We believe that the stock price has been hampered in part by ongoing illegal shorting activity, which should be addressed through the actions announced today," commented Sandy Krolick, PKG Chairman.

"This decision is made with confidence and is best for the company and its shareholders. PKG's operational progress to date has produced a solid outlook for our future success in 2006 and we fully expect to produce revenue this year. With the undervalued stock issue presumably behind us, our full focus now is on properly capitalizing the business opportunities ahead and driving long-term shareholder value," remarks John C May, Director.

About PKG Entertainment, Inc.

PKG Entertainment is a vertically integrated entertainment property marketing and development company focused on retail and digital distribution and promotion independent music and movies. http://www.peakartists.com

Safe Harbor Statement

All statements other than statements of historical fact included in this press release are forward-looking statements within the meaning of the private securities Litigation Reform Act of 1995. The forward-looking statements, including statements about the company's future expectations, including future revenues and earnings, and all other forward-looking statements (i.e., future operational results and sales) are subject to assumptions and beliefs based on current information known to the company and factors that are subject to uncertainties, risk and other influences, which are outside the company's control, and may yield results differing materially from those anticipated.

KEYWORD: NORTH AMERICA COLORADO UNITED STATES INDUSTRY KEYWORD: ENTERTAINMENT MUSIC PROFESSIONAL SERVICES SOURCE: PKG Entertainment, Inc.

CONTACT INFORMATION: PKG Entertainment, Inc. Sandy Krolick, 720-246-9051 [e-mail]