CINAR CORPORATION

Cinar Corporation, formerly Cinar Films Inc. is an integrated entertainment company engaged in the production and distribution of quality non-violent television programming for children and families. Through the company's co-production relationships with major production companies, broadcasters and publishing companies located throughout the world, the company's programming is broadcast in over 150 countries as well as in the United States and Canada. During 1998, the company acquired HighReach Learning Inc. Production of television programs accounted for 70% of 1998 revenues and educational programs, 30%.