AMERIDREAM ENTERTAINMENT, INC. (PINK SHEETS: AMDR) FILES LAWSUIT TO CANCEL 7.8 MILLION SHARES

Suit, filed in federal court today, seeks a preliminary and permanent injunction against transfer of unpaid for shares.

SANTA BARBARA, CA (PRWEB) October 3, 2003 --Ameridream Entertainment, Inc. (Pink Sheets: AMDR) announced that it has filed today, in United States District Court, for the Central District of California, a complaint for injunctive relief against 19 shareholders it alleges own shares which were issued without consideration. The suit is a follow up to stop transfer orders placed on 8.9 million shares of common stock, including 3 million unlegended free trading shares. We have already recovered 1,076,000 free trading shares, which are being voluntarily turned in by a shareholder who has not been named in the complaint," according to Kenneth Eade, attorney for the Company. The lawsuit, Case No. LACV03-7068, alleges that former management of the company issued restricted common stock to officers, directors, and insiders, after their acquisition of the company, which acquisition was rescinded last week by the settlement of a court case against former management. Most of these 4.8 million shares that were issued to former insiders are still outstanding and are over one year old," said Eade. The company has filed the lawsuit as a protective measure to make sure these shares never hit the market." The suit further alleges that some three million free trading shares outstanding were issued pursuant to promissory notes, which were never paid for. A motion for preliminary injunction filed concurrently with the lawsuit states that, although none of these shares have yet been deposited with the Depository Trust Corporation, the company suspects that someone has attempted to sell them into the market during the last week of trading. In response to company inquiries, the Depository Trust Corporation has indicated that it will not put a chill on the stock, and that the company should protect itself at the transfer agent level. We have stop orders in place on all the suspect stock," said Mr. Eade. We intend to pursue the lawsuit until all of the shares are cancelled." The court has set a hearing on the companys motion for preliminary injunction for October 27, 2003 at 10:00 a.m.

This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of AmeriDream Entertainment Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

For further information, contact Jeffrey Volpe at Ameridream Entertainment, Inc., 805-899-1299

Source: Ameridream Entertainment, Inc.