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April 25, 2001 05:15am
New Frontier Media Consolidates C-band Business With Major Subscriber Acquisition
Source: New Frontier Media, Inc.
by: Company Press Release

(BOULDER, CO) -- New Frontier Media, Inc., a leader in the electronic distribution of adult entertainment, announced today that its Subscription and Pay TV subsidiary, The Erotic Networks, acquired the subscriber base of Emerald Media, Inc., a privately held adult entertainment distributor.

Emerald Media was formerly the Company's largest competitor, and one of the few competitors of any kind, to provide content direct to consumers utilizing the large C-band dish. Terms of the deal were not disclosed.

The Company reported that it expects to add approximately 27,000 new paying subscribers to its existing C-band customer base. ``This is an opportunistic acquisition for us,'' explained Ken Boenish, President of The Erotic Networks. ``Our infrastructure, including our call center which provides customer service and marketing support to our existing C-band customers, can easily accommodate these new subscribers with little added cost.'' The Company reported that it expects to generate an additional $300,000 to $400,000 per month in revenue from the acquisition of these subscribers.

``The C-band market has been a highly profitable business for us during the past three years,'' Boenish said. The Erotic Networks reported that it expects its C-band revenue to remain a profitable revenue source for the Company.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of Securities & Exchange Act. The Company intends forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. All statements relating to the number of anticipated new subscribers from the acquisition, expected revenue generated from the acquisition, the continuation of its C-band revenue to remain a profitable revenue source and the outcome of any contingencies are forward-looking statements. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. Please refer to the Company's most recent Form 10-KSB and other filings with the SEC for additional information regarding risks and uncertainties.

ABOUT NEW FRONTIER MEDIA, INC.

New Frontier Media, Inc. is the fastest growing distributor of Adult Entertainment today. The Company delivers the most extensive lineup of quality programming over the broadest range of electronic means including cable, satellite, Internet, Broadband and video-on-demand.

The Erotic Networks, the umbrella brand for the Company's subscription and pay television subsidiary, provides pay-per-view and subscription TV networks to over 25 million cable, DBS (direct broadcast satellite) and C-band households throughout North America. The Erotic Networks include Pleasure(TM), TeN(TM), ETC (Erotic Television Clips)(TM), Extasy(TM), True Blue(TM) and Gonzo X(TM). These networks represent the widest variety of editing standards available and are programmed without duplication to offer the most extensive selection of adult network programming under a single corporate umbrella.

IGallery, the Company's Internet subsidiary, is a leader in the adult Internet market serving both the consumer and webmaster markets. IGallery designs and manages its own membership-based web sites for the consumer market. IGallery also offers a wide range of products and services to the webmaster market. Presently, IGallery owns over 1,500 Internet domain names and operates 50 thematically organized consumer sites. Collectively, these sites generate over 60 million visitors each month. IGallery's own Internet network infrastructure enables the delivery of live and on-demand video events to millions of Internet users.

For more information contact Karyn Miller, Chief Financial Officer, at (303) 444-0900, extension 102, and please visit our web site at www.noof.com

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