Corus to Offer Digital Downloads

Corus Entertainment Press Release
May 1, 2006

Corus Entertainment has unveiled plans for a new direct-to-family digital download service TreehouseDirect. The storefront will allow for the purchase of single episodes, bundles or full seasons of popular preschool programs.

"This initiative builds on Corus Entertainment's focus on creating exciting entertainment for children and families, allowing us to be everywhere they access content," said John Cassaday, Corus Entertainment President and CEO, in an announcement. "TreehouseDirect offers our audiences the flexibility to customize and personalize their experiences with our brands."

Doug Murphy, Executive VP of Business Development for Nelvana added: "Our plan is to be a global first-mover with this service, rolling out in Canada initially, followed by other English-speaking countries and eventually expanding to other languages. Backed by the parent-approved Treehouse brand and stocked with family-friendly programming from Nelvana, we are offering parents a safe, trusted place to explore new viewing platforms."

www.TreehouseDirect.com, powered by software from Toronto-based ExtendMedia, will go live this June with a link from the TreehouseTV.com network website. Links will allow parents to jump from a show page on the Treehouse site to the TreehouseDirect downloads for that particular show.

ExtendMedia's OpenCASE content service management platform allows Corus to secure and distribute content, and scale its TreehouseDirect offering to support rapidly expanded use as consumer demand takes off.

The storefront will initially offer Nelvana-animated preschool favorites Max & Ruby, Franklin, Miss Spider, Timothy Goes to School, Little Bear, Babar, The Berenstain Bears and Rolie Polie Olie. Pricing will reflect the value of content ownership over single-use, or time-restricted rentals to protect the Company's cable video-on-demand partnerships, it was described.

New episodes and series will be added to the site's inventory once the full season has aired on broadcast and specials will be added shortly following the TV airdate.

TreehouseDirect will be Viiv-verified by Intel, ensuring its compatibility with the new generation of digital home entertainment devices coming to market. The service will also support the launch of new Corus Entertainment series through promotions and sneak peeks as part of the Company's integrated multiplatform launch strategy.

Corus' forward-looking plans for TreehouseDirect include: potential partnerships with content aggregators, internet portals, BDUs and telcos; the inclusion of additional online product sales like music, games and consumer products; and applying the model to other Corus Entertainment brands such as YTV, W Network and CMT Canada.

About Corus Entertainment
Corus Entertainment is a Canadian-based media and entertainment company. Corus is a market leader in both specialty TV and Radio. Corus also owns Nelvana Limited, an internationally recognized producer and distributor of children's programming and products. The Company's other interests include music, television broadcasting and advertising services. A publicly traded company, Corus is listed on the Toronto (CJR.NV.B) and New York (CJR) Exchanges.

About ExtendMedia, Corporation
ExtendMedia delivers digital media infrastructure solutions that provide the foundation for today's leading content businesses. Our flagship product, OpenCASE, is a flexible content service management platform that allows companies to swiftly provision, secure, package and monetize digital content offerings. OpenCASE's sophisticated business rules and automation controls allow our customers to create and deploy online media businesses that are easier to operate and scale. Its rich feature set for metadata and asset management, DRM policy, syndication, billing, and consumer profiling powers the online offerings of top-tier media companies, broadband service providers, and mobile operators. ExtendMedia's customers include Cablevision, Bell Canada, MTS, and ClickStar. For more information, visit www.extend.com .

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