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PACIFIC ENTERTAINMENT ANNOUNCES LANDMARK DISTRIBUTION DEAL WITH LEADING DUTY FREE DISTRIBUTOR/RETAILER MOTTA INTERNACIONAL FOR MUSICAL EDU-TAINMENT BRAND BABY GENIUS

DEL MAR, Calif. – (February 4, 2008) – Pacific Entertainment Corp., creator and distributor of the award-winning Baby Genius brand of music-based home entertainment and toys for infants and toddlers, has named Motta Internacional as the exclusive distributor of Baby Genius products in duty free and domestic retail outlets in Central and South America, it was jointly announced by Pacific Entertainment Corp. President Larry Balaban and Motta Internacional CEO Erasmo Orillac.

The landmark agreement establishes children’s edu-tainment DVDs and CDs, along with learning and development toys as new product categories for Motta, a company recognized throughout the industry as a founding pioneer of the duty free retail marketplace. Motta boasts decades of commercial experience in Latin America as the strongest and most respected duty free operator and supplier in the region.

The Baby Genius brand, known for delivering on its promise that learning is fun and “music makes a difference,” joins Motta’s enviable line of the world’s most prestigious and well-known brands in liquor, perfumes and cosmetics, watches, jewelry, writing instruments, consumer electronics, leather goods and fashion accessories.

Launched in 1998, the award-winning Baby Genius brand is committed to providing music-based products that are entertaining, educational and beneficial to the well-being of infants and young children. The innovative line of DVDs, CDs and toys feature music as a core-learning tool, engaging and encouraging children to communicate, connect, discover and express themselves.

The Baby Genius brand has successfully sold more than 7 million DVDs and CDs, is distributed in more than 8,000 retail outlets in the United States where it is the #1 children’s Video-on-Demand on Comcast Cable network with nearly 10 million on-demand uses in 2007 alone. In the international marketplace, Baby Genius programs are broadcast in more than 30 countries.

The complete line of Baby Genius products to be offered at Motta’s attenza retail outlets includes Baby Genius toys, along with the outstanding collection of Baby Genius DVDs and companion CDs. With a focus on entertainment and teaching children in an environment filled with fun and adventure, the collection includes themes about playtime outings and little children interacting in the events and places around them. Animation is combined with children’s songs that feature the fun-loving Baby Genius characters, DJ the Dinosaur, Vinko the Dancing Bear and more.

Baby Genius toys, a full line of fun, educational and interactive toys introduced in 2007, are designed for three specific age groups: newborns, 6+ months, 12+ months and beyond. The line includes play mats, gym mats, plush, snuggling blankets, musical toys, puzzles and more – all featuring the lovable Baby Genius cast of characters.

The agreement with Motta comes on the heels of the Baby Genius brand’s recent philanthropic efforts in Panama during the holiday season. Baby Genius joined Panama’s First Lady, Vivian Fernandez De Torrijos, as she toured school construction sites throughout the country’s interior as part of her charitable educational program, Schools from Sticks to Bricks. Pacific Entertainment donated tens of thousands of its acclaimed, best-selling Baby Genius DVD and CD collections, plush toys, as well as TV/DVD sets, to schools in the communities of Piriati Embera and Akua Yala.

While in Panama, Baby Genius also sponsored a float in honor of the Mayor of Panama, Juan Carlos Navarro, and the Children of Panama, as part of the Annual National Christmas Parade. Ten thousand Spanish-language Baby Genius sing-a-long CDs, along with plush toys, were distributed to families attending the parade which traveled through Avenida Balboa up to the end of 50th Street.

Promotional Partnerships

Baby Genius promotional partnerships deliver more than 5.8 million impressions for the brand annually and include leading brands such as Gerber’s and Parents Magazine. In 2007, Canadian retail giant, Loblaw’s selected Baby Genius as their private label brand for diapers and training pants. Beginning in March 2007, Pacific Entertainment launched an exclusive consumer promotion with Taco Bell®. The promotion offers consumers who purchase a Kids Meal for children under three one of nine bi-lingual Baby Genius Board Books. Each book highlights a special area of learning with a bi-lingual component.

Infant and Toddler Learning & Developmental Toy Line

The Baby Genius franchise took another leap forward in fall 2007 with the launch of Baby Genius learning and developmental toys and plush.

About Baby Genius

Multi-award winning Baby Genius is the premiere musical edu-tainment brand of CDs and DVDs for infants and toddlers, offering child friendly, quality content along with play patterns that nurture, stimulate and prepare children for early socialization and education. Awards include “Film Advisory Board Award of Excellence,” “Kids First Quality Children’s Media,” Parents Magazine “Video of the Year,” National Parenting Publications Award and Best “Under 3” QSR Program 2005/2005 from Restaurant Magazine.

ABOUT MOTTA INTERNACIONAL

Motta Internacional is a distributor for some of the world’s most prestigious and recognized brands in the following categories: liquors, perfumes and cosmetics, watches, jewelry, writing instruments, consumer electronics, leather goods, and fashion accessories. Known throughout the industry as the founding pioneer of the duty free retail marketplace in Latin America, Motta has over 50 years experience in the Duty Free and Travel Retail business, having opened the first Duty Free Store at an airport in the Western Hemisphere.

Alberto C. Motta, Snr opened his first store, Motta & Motta, in 1940 in the city of Colon, Panama, and soon began a vigorous, passionate effort to legitimize and nurture the concept of duty free – an effort he championed until his passing in 2006. Today, Motta Internacional facilitates commercial activities in over 20 countries in Central America, South America and the Caribbean. In December 2007, Motta announced the launch of attenza, the new commercial identity for its Duty Free Stores. Motta owns, operates and supplies 55 attenza Duty Free Stores and has over 1,400 employees.

Armed with an incredible legacy of success with both the Motta organization and the duty free industry at large, Motta has a keen eye for the future of the region and anticipates monumental growth as a result of the widening of the Panama Canal.

ABOUT PACIFIC ENTERTAINMENT CORPORATION

Established in 2006 by Klaus Moeller, Mike Meader, Howard Balaban and Larry Balaban, creators of the Baby Genius® brand, Pacific Entertainment Corporation focuses on quality children’s entertainment brands and specialty music programs. Together, the company principals boast 30 years experience in children’s entertainment. At Duty Free Show of the Americas, Pacific Entertainment is located at Booth #216