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A.G. Media Signs Letter of Intent to Acquire GospelZone.com

MONTREAL, September 7, 2004 A.G. Media Group, Inc. (NQB Pink Sheets: AMGJ.PK - News) today announced it has signed a letter of intent to acquire the assets of GospelZone.com. The purchase price was not disclosed and the deal is expected to close on October 15, 2004.
GospelZone will be moved to Montreal, head office of A.G. Media, where its staff will assume control of the operations. A.G. Media intends to integrate some of GospelZone.coms content into its GospelCity.com web property. The deal is expected to include GospelZone.coms targeted e-mail database of 30,000 opt-in Christian consumers, its e-mail marketing newsletter The GZ Underground and all associated trade and brand marks.

Best Web Hosting Curtis Jermany, the founder of GospelZone stated, I am proud to have built up the GospelZone web property to its current state and feel that A.G. Medias executive team is in an ideal position to further enhance its value using their resources and wide ranging contacts within the gospel industry.

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GospelZone.com (http://www.gospelzone.com) in operation since 2001, provides a resource for the Gospel music and entertainment industry to present information and foster community development. The GospelZone.com web site has realized traffic of up to 125,000 unique monthly visitors and won the 2002 GTM Award for Best Gospel Destination Site.

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Web Site Design And Hosting A.G. Media Group (http://www.agmediagrp.com) was established to become a leading Christian media company comprising Christian-based internet, print, radio and television related content properties and technology development services. A.G. Media is also focused on the development of valuable, high demand content for distribution through multiple media outlets and through its continually growing audience base.

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Web Hosting Plans GospelCity, part of the Internet and New Media Division of A.G. Media Group, utilizes Internet and new media technologies and services to provide access and exposure to Christian music and entertainment. GospelCity.com is widely recognized as the leading web destination for Urban/Gospel Christian music fans and consumers who desire to access Christian music, artist information, inspirational content, community exchange and spiritual programming online. GospelCity.com offers an easy and enjoyable means to connect consumers with the Christian music industry and with other Christian music fans and consumers.

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Web Hosting Compare All statements other than statements of historical fact included in this press release are forward-looking statements within the meaning of the private securities Litigation Reform Act of 1995. The forward-looking statements, including statements about the company's future expectations, including future revenues and earnings, and all other forward-looking statements (i.e., future operational results and sales) are subject to assumptions and beliefs based on current information known to the company and factors that are subject to uncertainties, risk and other influences, which are outside the company's control, and may yield results differing materially from those anticipated.

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