Newsletter

November 3, 2003

Volume VI, Issue 110

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Family Room (OTC BB: FMLY) Back in the News After A Lengthy Absence

I haven't published on Family Room since September 4th when we covered the start of filming of "Control", with Ray Liotta and Willem Dafoe.

As you can see from the chart, this has been a lackluster year for Family Room, which I previously had high hopes would find its way into the $.25 range this year. So far on Family Room, I have been wrong.

However, the premise for owning this stock has not changed. There are only 24 million shares issued and outstanding, meaning the market is placing a $2.5 million value on the company with stock trading at about $.10. The company only needs one big win of its many projects in development to notch substantial earnings per share.

Family Room requires about $750,000 in cash to cover its annual overhead. Co-Chairman Randall Emmett and George Furla don't take salaries of any kind. The company runs lean and mean, and one big win will send this stock rocketing.

Family Room has enough production business starting next year to cover the corporate overhead. Now, it is just a matter of earnings to get the stock rolling.

Today, just after the market closed, the company announced it has sold the rights to the remake of the THE AMITYVILLE HORROR, which was acquired earlier this year, to Miramax.

Dimension Films, a subsidiary of Miramax, has picked up the rights to THE AMITYVILLE HORROR remake. Dimension developed the "Scream" and "Halloween" franchises, and has made fortunes with both. According to the press release, the film should be released early next summer.

At this point, Family Room will be along for the ride. The company will have a windfall from the handing off of the project a major studio. There will be some kind of front end fee, and profit participation down the road.

Conclusion- not much risk and lots of upside potential from these levels. It seems to be a matter of when, not if.

Here is the complete text of today's news release for your review:

Press Release Source: Family Room

Emmett/Furla joined by Dimension/Miramax in a new Horror Pic from Infamous Amityville

Monday November 3, 5:58 pm ET

LOS ANGELES, Nov. 3, 2003 (PRIMEZONE) -- Emmett/Furla Films, a wholly owned subsidiary of Family Room Entertainment Corporation (OTC BB:FMLY.OB - News), is pleased to announce that the Miramax Films subsidiary Dimension Films has acquired all rights from Barstu Productions, Integrated Films and Management, Emmett/Furla Films and Distributor Nu Image Films to create, produce and distribute a feature film which will be a modern horror story set in the infamous town of Amityville.

In a release from Dimension Films on October 30, 2003, the studio stated: ``Dimension Films, the studio that brought you the 'Scream' & 'Halloween' franchises has acquired the rights to George Lutz's life and events, it was announced today by Dimension Films Co-Chairman Bob Weinstein (sic). Dimension's film will focus on events outside of the scope of the original book and film. Dimension acquired the rights from Nu Image. Avi Lerner, Trevor Short and John Thompson negotiated on behalf of Nu Image. The rights to Lutz's story were assembled by Paul Mason, Steve Whitney, Randall Emmett, George Furla and Dan Farrands who, together with George Lutz, assigned the rights to Nu Image for the development of a motion picture.''

Bob Weinstein added an article in Daily Variety (October 31, 2003): ``We've come up with our own take on the (Amityville) story, and I'm sure that (the MGM) remake can be a success. I know one thing: We're very good at coming out first.''

Co-chairmen Randall Emmett and George Furla added: ``We are excited to be in business with Dimension Films and we believe 'Amityville'' has the potential, subject, of course, to box office performance, to have a meaningful impact on Family Room Entertainment's balance sheet.``

Family Room Entertainment Corporation, with its subsidiaries, Emmett Furla Films Productions, Emmett Furla Films Distribution and EFF Independent, is a publicly held company trading on the NASDAQ Bulletin Board under the symbol ``FMLY''. Family Room Entertainment develops, produces and performs production related services for the entertainment industry. Family Room Entertainment's aim is to create and produce high quality motion pictures with high profile talent that can be distributed to a worldwide audience. FMLY derives its income from producer fees, consulting and service fees as well as its participation in the profits of the various pictures it produces.

The FMLY co-founders, Randall Emmett and George Furla, believe that they have the expertise and contacts within the entertainment industry, specifically in the competitive production and distribution arenas, to profitably acquire content, package product by adding value to the content with top quality talent and produce motion pictures which are in the moderate to higher level budgets, which can be distributed to a mass worldwide audience. However, there is no assurance that any motion picture, which has not yet been released, will be released, that a change in the scheduled release dates of any such films will not occur or, if such motion picture is released, it will be successful.

Forward Looking Statement:

Safe Harbor: Statements contained in this news release, which is not historical facts, are forward-looking statements as that are defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause results to differ materially from those, projected.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the ``ACT''). In particular, when used in the preceding discussion, the words ``plan,'' ``confident that,'' ``believe,'' ``expect,'' ``intend to'' and similar conditional expressions are intended to identify forward- looking statements within the meaning of the ACT and are subject to risks and uncertainties, and actual results could differ materially from those expressed in any forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

Contact:
          Sundar Communications
          Jason Sundar
          (604) 893-7079
--------------------------------------------------------------------------------
Source: Family Room

Charts Provided Courtesy Of TradePortal.com

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