Corus Entertainment Provides Fiscal 2004

Sep 25th 2003
Corus Entertainment Inc. (TSX:CJR.B; NYSE:CJR)
updated investors today on fiscal year 2003 performance and provided near-term guidance for the Company's 2004 fiscal year.

Corus announced that it will exceed its stated financial targets for fiscal year ending August 31, 2003. The targets were: 1) 10% EBITDA growth in both radio and television businesses; 2) free cash flow of CAD$20 M; and 3) a cash flow neutral position on Nelvana operations. Corus will release its audited year-end results on October 23, 2003.

John Cassaday, President and Chief Executive Officer, commented: "We are very pleased with preliminary 2003 results. We delivered on our promises of performance despite the unforeseen volatility in the market brought on by war uncertainties, SARS, Mad Cow, and the Ontario Blackout. We contained costs and successfully competed for the available radio and television ad revenue. Nelvana met our expectations in 2003, as we enjoyed success in developing our brands. Beyblade in particular performed well."

Earlier in the day, Corus announced two important deals that attest to the value of Nelvana's library of animated properties for the exploding home entertainment sector. U.S.-based distributor, FUNimation, has acquired the rights to release 44 back-catalog titles and Maverick in the U.K. has signed on to market 33 Nelvana library titles, plus options on new releases.

"Our outlook for fiscal year 2004 remains positive. The advertising revenues on radio and specialty television networks are pacing well ahead for the first quarter. We are projecting continued growth through the balance of the year and we're well-positioned to maximize revenue with strong programming on all of our services," continued Mr. Cassaday. "We are targeting consolidated EBITDA growth of 10-15% and a reduction in debt levels to between 3 and 3.5x EBITDA for fiscal year 2004. We also expect to increase our free
cash flow by 25% for the year."

The Company also reviewed some key business drivers and initiatives that are providing momentum for fiscal 2004. (See attached Backgrounder for further details.)

"We are exploring a number of strategic opportunities that could contribute to the growth and excitement of Corus," said Cassaday. "As an example, we have retained International Creative Management Inc., one of the world's leading talent agencies, to explore opportunities surrounding our feature film rights for The Babar Movie."

"Our radio business is projected to outpace the market in advertising revenue growth and we are committed to delivering a 30% margin in fiscal 2004," said John Hayes, President of Corus Radio. "We will continue to close the gap between loss and profit on our turnaround stations. Our strong position in major markets across Canada, the consistent performance of our mature stations and innovative initiatives such as Deep Sky give us continued opportunities for leveraging the synergies that contribute to growth for the Radio division overall."

Corus Television enjoyed impressive audience growth in fiscal 2003. The company's analog specialty TV services posted a 40% increase in the important 25-54 demographic over the previous year, outpacing the industry trend.

"In television, we will continue to be a major contributor to the growth of Corus in the coming year," said Paul Robertson, President of Corus Television and Nelvana. "Our long term goal of a 40% operating margin and a 10-15% annual growth in EBITDA will be achieved by leveraging our leadership position in kids and women's programming. Premium Television subscriber levels start the year up 8% over last year. This will be a key driver of growth and
new product innovation for Corus Television this year."

"Corus Entertainment operates in two of the strongest growth segments in the entertainment sector - radio and specialty television," concluded Heather Shaw, Executive Chair of Corus Entertainment. "We are focused on growing our top line, generating incremental free cash flow and reducing our net debt position - all of which position our company well for the future."

A full audio and PowerPoint archive of Corus Entertainment's presentation to investors is available on the Company's Web site at www.corusentertainment.com under "Financial Info".

Corus Entertainment is a Canadian-based media and entertainment company. Corus is a market leader in both specialty TV and Radio. Corus also owns Nelvana Limited, an internationally recognized producer and distributor of children's programming and products. The company's other interests include music, television broadcasting and advertising services. A publicly traded company, Corus is listed on the Toronto (CJR.B) and New York (CJR) Exchanges. Corus' Web site can be found at corusentertainment.com.

Certain statements included in this presentation constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Such factors include, among others, the following: the impact of conditions in the entertainment, information and communications industries; risks associated with the economic, political and regulatory policies of local governments and laws and policies of Canada; the potential impact of increased competition in the Company's markets; and other factors which are described in the Company's filings with the Securities and Exchange
Commission.

ATTACHED: Corus Entertainment Investor Day Backgrounder

Corus Entertainment Investor Day 2003
Backgrounder
Look At Us Now!

Diversified Portfolio:
- Revenue - 49% Television, 36% Radio, 15% Content
- 30% Local Advertising, 27% National Advertising, 27% Subscriber
Fees, 9% License Fees, 6% Merchandising and Publishing, 1% Other

Fiscal 2004 Guidance:
- 10-15% EBITDA growth
- 25% increase in free cash flow
- Debt/EBITDA ratio of 3 - 3.5x

Corporate Strategy:
- Increase revenue by investing in programming, focusing on customers
and leveraging technology
- Improve free cash flow and reduce net debt to less than 3x EBITDA
- Get the company ready to participate in the next round of Canadian
media consolidation

Radio Division:
- Corus Radio remains the Canadian leader in daily reach, revenue and
share of tuning
- 75% revenue derived locally; 25% from national advertisers
- AM Radio performing well, revenue growth on AM stations outpaced FM
stations in f'03
- Primary commitment to sales training and customer service
- Priorities: close the gap between loss and profit on turnaround
stations; maximize share of revenue in all markets
- Fiscal 2004 Goals: 30% margin; revenue growth ahead of industry

Television Division:
- Diversified programming mix - 37% Adult, 40% Kids, 23% Pay
- Balanced Revenue mix - 55% Subscriber Fees, 42% Advertising, 3%
Other
- Premium TV subscriber growth up 8% over year ago following strong
direct marketing campaigns
- Digital networks loss halved in fiscal 2003
- Corus Television adult analog services viewing up 40% in A25-54
- 60% audience growth for W Network in fiscal '03 = No. 1
specialty channel for women but still less than 2% of total women
viewing = significant growth potential in f'04
- Kidfluence model driving additional revenue from new advertiser
segments to the category - e.g. technology, government, personal
care = incremental $2M or 4.3% revenue growth
- Positive trend for digital penetration
- New revenue opportunities: Subscription Video-On-Demand (SVOD);
HDTV; Gaming; Music
- 2004 Goals: 5-10% revenue growth; 10-15% EBITDA growth

Content Division:
- Continued emphasis on multi-platform revenue model, reducing
dependence on production
- Strong F'04 slate of 140-150 episodes getting positive reaction
- Major U.S. and international broadcaster interest in Little Miss
Spider
- Home Entertainment Division created with two library distribution
deals complete and a seven-figure advance on future royalties
- Feature film strategy generating interest; retained ICM to represent
Babar feature film rights, negotiations ongoing for representation
on other feature titles
- Canadian "hot-house" strategy leveraging Corus broadcasting assets
to build brand momentum as in Beyblade model
- Continued strong performance by Beyblade globally
- New growth opportunities: VHS/DVD distribution for library and new
releases; feature film development; Babar for Babies consumer
products program; music; gaming
- Fiscal 2004 Goals: Positive cash flow

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