BFS Entertainment & Multimedia Limited Announces Second Quarter Results

RICHMOND HILL, ONTARIO--(Marketwire - Dec. 23, 2011) - BFS Entertainment & Multimedia Limited (TSX VENTURE:BFS) of Richmond Hill, Ontario, announces its unaudited consolidated financial and operating results for the second quarter ended November 5, 2011.

Sales for the first six months were $4,888,901 compared to $5,949,054 last year and for the second quarter were $2,660,438 compared to $3,472,258 during the same quarter last year. Net loss for the first six months was $153,131 ($0.02 per share) compared to a net income of $108,623 ($0.01 per share) for the same period last year. Net loss for the second quarter was $19,893 ($0.00 per share) compared to a net income of $140,476 ($0.02 per share) for the same quarter last year.

Denis B.E. Donnelly, President and CEO stated, "The United States economic downturn continues to negatively impact our revenues and earnings. Going forward, we have made significant reductions in our direct to consumer advertising initiatives and other expenses which will be reflected in our results over the balance of the fiscal year. As a result, we remain confident that earnings will improve for the balance of 2012."

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FINANCIAL                                                                  

 HIGHLIGHTS                                                                

(Unaudited and                                                             

 not reviewed                                                              

 by an auditor      Thirteen        Thirteen    Twenty-six      Twenty-six 

 - in Canadian   Weeks Ended     Weeks Ended   Weeks Ended     Weeks Ended 

 dollars)       Nov. 5, 2011   Oct. 30, 2010  Nov. 5, 2011   Oct. 30, 2010 

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Sales           $  2,660,438  $    3,472,258 $   4,888,901  $    5,949,054 

Cost of goods                                                              

 sold                991,681       1,258,863     1,865,557       2,264,841 

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Gross profit       1,668,757       2,213,395     3,023,344       3,684,213 

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Selling and                                                                

 administrative                                                            

 expenses          1,655,756       1,878,303     3,129,650       3,354,868 

Amortization          88,607          92,633       167,151         170,304 

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Income (loss)                                                              

 from                                                                      

 operations          (75,606)        242,459      (273,457)        159,041 

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Interest                                                                   

 expense              11,188           5,584        21,963          12,538 

Foreign                                                                    

 exchange loss                                                             

 (gain)              (60,653)         29,566       (71,706)        (24,028)

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Net finance                                                                

 charges             (49,465)         35,150       (49,743)        (11,490)

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Income (loss)                                                              

 before income                                                             

 taxes               (26,141)        207,309      (223,714)        170,531 

Income taxes                                                               

 (recovery)           (6,248)         66,833       (70,583)         61,908 

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Net income                                                                 

 (loss)                                                                    

and                                                                        

 comprehensive                                                             

 income (loss)  $    (19,893) $      140,476 $    (153,131) $      108,623 

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Basic and                                                                  

 diluted income                                                            

 (loss) per                                                                

 share          $      (0.00) $         0.02 $       (0.02) $         0.01 

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BFS Entertainment & Multimedia Limited is a recognised independent North American entertainment company focusing on the acquisition, distribution and production of film and television media with head office in Toronto, Ontario.

Programming includes classic dramas, mystery, comedy, sports, documentaries and health and wellness and is sold under the BFS, American Home Treasures and Bodhi Lifestyle(TM) brands. North American retail distribution is through national retailers, distributors, mail order companies and BFS' direct to consumer division and e-commerce websites.

BFS' strategy is to continue to acquire new programming and to expand its proprietary programme development, international distribution and direct to consumer delivery.

(SEC Rule 12g exemption #82-4245)