Rainmaker to Acquire Outstanding Mainframe Shares

VANCOUVER, August 30: After acquiring IDT Entertainment’s
62-percent stake in Mainframe Entertainment last month, Canada’s Rainmaker
Animation & Visual Effects has reached a deal to acquire the remaining 38
percent interest in the CGI animation outfit.

RNK Capital Limited Partnership, a subsidiary of Rainmaker’s
parent company, Rainmaker Income Fund, will acquire the remaining interest for
C$0.24 per share. Upon completion of the acquisition by RNK Capital, the
businesses of Mainframe and Rainmaker Animation & Visual Effects will be
fully integrated under the corporate name Rainmaker Entertainment.

The acquisition is conditional upon the approval by 66.7
percent of the Mainframe shareholders and by 50.1 percent of the Mainframe
shareholders other than RNK Capital, as well as other customary conditions and
regulatory approval. A special meeting of Mainframe shareholders is proposed for
October and closing is expected to occur that same month.

Rainmaker Entertainment (REI) will be the largest animation
and visual effects studio in Canada with over 300 employees. Warren Franklin,
the president of Rainmaker, will be the CEO of REI; and Rick Mischel, the CEO
of Mainframe, will be the president and COO of REI.