Jill Kelly Productions Licenses Kaytel Video to Disribute New ``BLU'' and ``Collateral...

NORTH HOLLYWOOD, Calif. -- Agreement Follows Recent Acquisition of the Licensing Rights for These Product Lines

Jill Kelly Productions Holding, Inc. (OTC: JKXJ), a leading US adult entertainment company that develops, produces, licenses and distributes quality films worldwide, today announced

that it has signed an agreement to license to Kaytel Video Distribution of Quebec, Canada, the rights to distribute in Canada new films being jointly produced by Jill Kelly Productions Holding, Inc. ("JKP") and its partner under the brand "Collateral Damage XXX" as well as films under the brand "BLU" for which JKP recently acquired North American distribution rights.

As part of JKP's strategy of increasing sales by broadening its product offerings and expanding to new markets, in September 2004, JKP signed an agreement with Erotic Media, a publicly traded TV broadcaster and licensor of adult entertainment content in Europe, to acquire North American distribution rights for its "broadcast quality" erotic European films under the "BLU" label. They are suitable for adult entertainment television and the "couples" niche market. Earlier this summer JKP signed an agreement with another European based adult entertainment film production company to co-produce and distribute a line of more explicit and graphic adult entertainment films under the "Collateral Damage XXX" brand.

Kaytel Video, a leading distributor of adult entertainment in Canada, has been granted a license to distribute in Canada VHS and DVD versions of the "BLU" and "Collateral Damage XXX" films and the right to distribute these films through Internet streaming. Any licensing fees received for Cable TV, Video-On-Demand and other broadcasting will be split equally between Licensor and Licensee.

"Our agreement giving Kaytel Video Canadian distribution rights for films from our newest product lines is the next step in executing our long-term strategy to broaden our product offerings and expand sales to new markets," commented Robert Friedland, Chairman & CEO of Jill Kelly Productions Holding, Inc. "As more product becomes available from our supplying partners, we anticipate current and future distribution partners to make them available to their customers, generating additional revenues and profits for Jill Kelly Productions."

About Jill Kelly Productions

Jill Kelly Productions Holding, Inc. is one of the best-known adult entertainment studios in the U.S. The Company develops, produces, licenses and distributes quality adult films through retail, cable, satellite, video-on-demand and the Internet. With over 250 movies in its video library and works with many independent distributors, retailers, cable, satellite and hotel television operators, and internet web page operators, worldwide. Stringent quality control is maintained on every film production, and leading talent is signed to long-term contracts that ensure brand loyalty.

Safe Harbor Statement

The foregoing, as well as other statements made by Jill Kelly Productions Holding, Inc. may contain forward-looking statements regarding the Company. The words and phrases "expect," "estimate," "anticipate," "should," and similar expressions identify forward-looking statements. Such statements reflect, when made, the Company's current views, beliefs and expectations with respect to current events and financial performance, and are and will be, as the case may be, subject to significant risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following: the ability of the Company to operate pursuant to the terms of its financing arrangements; the Company's ability to obtain additional financing; the Company's ability to maintain contracts that are critical to its operations; potential adverse developments with respect to the Company's liquidity or results of operations; the ability to fund and execute its business plan; the ability to attract, retain and compensate key executives and associates; and the ability of the Company to attract and retain customers, as well as those discussed or identified from time to time in the Company's public filings with the Securities and Exchange Commission. Jill Kelly Productions Holding, Inc. assumes no obligation to update or revise any forward-looking statements, set forth in these news releases, which speaks as of the date specified.