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Mass Hysteria Entertainment Company's Follow Up CEO Letter To Shareholders

It may take a few days before normal stock trading resumes, and your patience through this process is very much appreciated.

On the news front I am pleased to announce that we have entered into a definitive distribution agreement with the Megas Media Fund, who has an arrangement with Cinemavault, an international sales agent and Canadian distributor based in Toronto specializing in commercially viable and unique feature film and television projects, to distribute our next action/horror motion picture production entitled "Chomped 3D". The movie revolves around genetically enhanced alligators that invade the tiny island community of Grand Lafitte, Louisiana. Cinemavault intends to take the project to the upcoming Berlin Film Festival ( February 7-17, 2013) to secure lucrative foreign pre-sale contracts, which with available Louisiana production film incentives, should finance a substantial portion of the production costs of the movie.

Secondly, we have entered into an agreement with a leading capital sourcing company under which for the next 120 days they will act as an investment consultant to the Company with the ultimate objective of helping us secure up to $2 million in long term financing. We need this level of capital injection to help us propel our emerging new business in the Interactive Cinema arena as well as sustain us as we ramp up the production of our motion picture slate for 2013 and beyond. We will be releasing more information shortly as we firm up the opportunities.

As always, the Board of Directors and Management would like to express our thanks to you, our shareholders, for your continued support of our Company and, in particular, for your patience while we complete the restructuring of our issued share capital with the hope of becoming more competitive going forward.

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