AgU Entertainment Secures $2.5 Million Bridge Loan

AgU Entertainment Secures $2.5 Million Bridge Loan

Loan Provides Immediate Access to Capital from Pending Facility Sale Transaction to Support the Development of THE TUBE

LAUDERDALE LAKES, Fla., Oct. 28 /PRNewswire-FirstCall/ -- AgU Entertainment Corp. (BULLETIN BOARD: AGUE) ("AgU"), an emerging entertainment company and parent company of THE TUBE Music Network, Inc. ("THE TUBE"), announced today that under its previously announced agreement with Tarragon South Development Corp.("Tarragon"), AgU has secured a $2.5 million bridge loan.

The Company entered an agreement, pursuant to which Tarragon agreed to provide a bridge loan of $2.5 million to the Company, to be advanced as a third mortgage secured by the real estate. The Company has received the first two tranches of the loan for an aggregate amount of $1.5 million. The third tranche in the aggregate amount of no more than $1.0 million will be advanced, subject to the Company's compliance with conditions in the documents evidencing the Loan, on November 1, 2005. Specific terms and conditions of the loan are outlined in a Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC). Net proceeds from the bridge loan will be used to repay indebtedness, to fund the working capital needs of the Company, for the continued development and rollout of THE TUBE and the e-commerce platform, and for general corporate purposes.

David Levy, President of AgU, commented, "The bridge loan marks the first phase of our strategy to monetize the value of our property and reinvest the proceeds to support the development of THE TUBE. The bridge loan gives us immediate access to a portion of the net proceeds of the final sale transaction, enabling us to improve our balance sheet and provide the necessary capital to move forward on our near-term initiatives. We remain confident in our ability to complete the sale transaction by year end 2005 and continue to direct our full attention to the growth of THE TUBE."

About AgU Entertainment Corp. ("AgU")

AgU is an entertainment company with two core businesses: THE TUBE Music Network, Inc. ("THE TUBE"), and AgU Music, Inc. ("AgU Music"). THE TUBE is the only all- music channel on television and broadcasts advertiser-supported promotional programming derived from music videos and DVD material. Designed to appeal to the economically powerful 35+ age group, proposed direct sales and e-commerce components will enable the audience to "See it, Hear it, Buy it", immediately, by telephone or via the Internet. AgU Music is a boutique record label engaged in the release of recorded music through artist signings and acquisitions.

Forward-Looking Statements

This press release may include a number of "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management's current views with respect to future events and financial performance and include statements regarding management's intent, belief or current expectations, which are based upon assumptions about future conditions that may prove to be inaccurate. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, involve risk and uncertainties, and that as a result, actual results may differ materially from those contemplated by such forward- looking statements. Such risks include, among other things, the volatile and competitive markets in which we operate, our limited operating history, our limited financial resources, our ability to manage our growth and the lack of an established trading market for our securities. When considering forward- looking statements, readers are urged to carefully review and consider the various disclosures, including risk factors and their cautionary statements, made by us in our reports filed with the Securities and Exchange Commission.

Source: AgU Entertainment Corp.

CONTACT: Evan Smith, CFA, +1-212-850-5606, esmith@fd-us.com, or Erica
Pettit, +1-212-850-5614, epettit@fd-us.com, both of Financial Dynamics for AgU
Entertainment

Web site: http://aguent.com/

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