Raven Moon's New 75-for-1 Warrant Dividend Offers Opportunities for Shareholders

Raven Moon's New 75-for-1 Warrant Dividend Offers Opportunities for Shareholders

ORLANDO, Fla., Jan. 23 /PRNewswire-FirstCall/ -- Raven Moon Entertainment, Inc. (BULLETIN BOARD: RVMN) has reminded shareholders of its new upcoming 75-for-1 warrant dividend, which has a record date of February 10, 2006. For each share held at the record date, shareholders will receive one warrant that enables them to purchase 75 restricted common shares. The exercise price for the warrants has been set at a 25% discount of the closing bid price on the day the check is written to the company. The company will not charge a processing fee to exercise the warrants.

"Raven Moon Entertainment has made strong progress over the past year and we believe that we have a good future, but we realize that our business model takes a longer time to generate recurring revenue streams than some other companies," said Joey DiFrancesco, Chairman and CEO of Raven Moon. "We are proud of the quality of GINA D'S KIDS CLUB(R) and confident that consumers and the market will reward the company over time. Our shareholders have been loyal and we appreciate their commitment to helping us grow the company."

"This warrant dividend can be used to average down current positions, rebuild positions or build on new positions. It provides an opportunity for those who buy shares before the record date of February 10 to acquire shares at the current market price and have the possibility of acquiring more shares at a 25% discount to the market price. By setting the exercise price below the bid price, we are making an attempt to reward those who exercise their warrants. The warrants also help the company by generating cash to help us grow and implement our business plan," he said.

Mr. DiFrancesco continued, "Over the past year, some of our accomplishments include:

* Growing the number of stations carrying GINA D'S KIDS CLUB to 227 stations, including some that air the show five days per week and one that is running a three-hour block on Saturday mornings,

* Producing 23 episodes of the show and securing a commitment for financing an additional 17 episodes,

* Obtaining a presenting public station (WPBT- Miami) who will launch the programs through American Public Television (APT) in June 2006,

* Embarking upon the Gina D's Reading Across America Program to promote the show through personal appearances, and forging a partnership with Florida Governor Jeb Bush's Just Read! Florida,

* Enhancing the shopping portion of the Web site and initiating additional sales channels,

* Securing approximately 50% of the financing arrangements for GINA D & THE TRANSISTOR SISTERS(R) - In Search of the Golden Record, the company's first animated G-Rated movie. A trailer of the movie is available at http://www.ginadskidsclub.com/ , and

* Continuing our commitment to high-quality educational and entertaining family entertainment."

"As we enter our seventh year in the entertainment business, our accomplishments give us increased incentive to work hard on our business strategy of generating visibility for our television show, which will in turn build demand for products related to the show and its characters. Our goal is to turn the demand into revenue from merchandising and licensing the products. We are all very focused on achieving that goal," Mr. DiFrancesco said.

Terms of 75-for-1 Warrants

The terms of the warrant dividend are: shareholders of record as of February 10, 2006 shall receive 1 warrant for each share of common stock owned as of that date. The warrant allows the shareholder to exercise 75 shares of common restricted stock for each warrant they own and exercise during a two- month window beginning February 15, 2006 to April 15, 2006 at a 25% discount of the closing bid price on the day their check is dated. Common shares purchased as a result of exercising warrants will be restricted for one year. The company does not intend to charge a fee to process the warrant exercises.

Instructions for Exercising the 75-for-1 Warrants

Between February 15, 2006 and April 15, 2006, if your account is with a broker and you have not received a physical warrant, have the broker send a letter to Raven Moon Entertainment, 120 International Parkway, Suite 220, Heathrow FL 32746 no later than April 15, 2006 verifying the number of shares you owned in your account as of February 10, 2006. Indicate the number of warrants you would like to exercise at a 25% discount of the closing bid on the day you write your check and make it payable to Raven Moon Entertainment, Inc.

If you have received a physical warrant from the company, fill it out and indicate the number of warrants you wish to exercise at a 25% discount of the closing bid on the day you write your check and make it payable to Raven Moon Entertainment, Inc. Upon receipt, the company will authorize the transfer agent to issue the shares to you.

Shareholders who need information on how to exercise their warrants may contact Carol Merry at Fahlgren Mortine Investor Relations at (614) 825-1750 or by email: carol.merry@fahlgren.com.

About Raven Moon Entertainment, Inc.

Raven Moon Entertainment, Inc. is involved with the production of family entertainment programs for television, VHS tapes, DVDs, music CDs and related toys. Raven Moon has produced 24 episodes of Gina D's Kids Club(R), which started airing in September 2004 and is currently carried on 227 television stations nationwide. In November 2005, the company signed an exclusive agreement with public television station WPBT-Miami to offer the programs through American Public Television (APT) to public stations across the country for a June 2006 launch.

For more information on Raven Moon Entertainment and Gina D's Kids Club(R), visit http://www.ravenmoon.net/ or http://www.ginadskidsclub.com/ .

Safe Harbor Act Notice: This release may contain forward-looking statements that involve risks and uncertainties, including without limitation, acceptance of the company's products, increased levels of competition, product and technological changes, the company's dependence upon financing and third- party suppliers, and other risks detailed from time to time in the company's federal filings, annual report, offering memorandum or prospectus. Specifications are subject to change without notice.

Contact: Carol Merry
Fahlgren Mortine Investor Relations
Phone: 614-825-1750
Email: carol.merry@ fahlgren.com

Source: Raven Moon Entertainment, Inc.

CONTACT: Carol Merry, Fahlgren Mortine Investor Relations,
+1-614-825-1750, or carol.merry@fahlgren.com

Web site: http://www.ravenmoon.net/

-------
Profile: intent