Fredericks Entertainment, Inc. Announces Reverse Stock Split and Symbol Change

AVENTURA, FL -- (MARKET WIRE) -- 05/30/08 -- Fredericks Entertainment, Inc. (PINKSHEETS: FDKE) was informed today by NASDAQ that the 1-for-3500 reverse split of its common stock requested by the Company will take effect at the market open on June 2, 2008. At that time, FDKS will become the new stock symbol for the shares as listed on the Pink Sheets Electronic OTC Markets on a split-adjusted basis. This action was approved by the company's Board of Directors on April 24, 2008 in response to a resolution put forth by a majority vote of the Company's stockholders.

The reverse split will reduce the number of issued and outstanding shares of the Company's common stock from approximately 239 million shares to approximately 68,000 shares. This lower number of shares is expected to result in a correspondingly higher price per share. Management believes that a higher share price will enhance the Company's ability to raise capital, broaden its appeal to investors and reduce per share transaction fees and certain administrative costs.

Furthermore, proportional adjustments will be made to the Company's stock options and other equity incentive awards, equity compensation plans and convertible securities. The dividend of Series B convertible preferred stock will proceed as previously announced although the conversion ratio will be changed by virtue of the reverse split from 0.5 share of common stock per share of Series B preferred stock to 1 share of common stock per 7,000 shares of Series B preferred stock. The number of authorized shares of common stock will remain unchanged at 500 million.

Information for Stockholders

As a result of the reverse stock split, stockholders will receive one new share of common stock for every three thousand five hundred shares held. Registered holders will receive a letter of transmittal with instructions for the exchange of stock certificates. Stockholders with shares in brokerage accounts encouraged to contact their brokers with questions or for further instructions. Fractional or partial shares will not be issued and instead will be rounded up to the nearest whole number of shares. Colonial Stock Transfer will act as the exchange agent and can be contacted at 801-355-5740.

About Fredericks Entertainment

The Company, based in Miami, Florida, primarily provides marketing and promotions for independent record labels. Some of its services include distribution, video and photography, radio and street promotion, international licensing, CD packaging, printing and graphic design. More info can be found at the Company's web site www.fredericksentertainment.com.

Disclaimer Regarding Forward-Looking Statements:

Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties outlined in its filings with the Securities and Exchange Commission, which are incorporated herein by reference. The actual results the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

Contact: Alex Aksert 305-932-3440

2008-05-30 20:42:03 0374103 MARKETWIRE