(STAW) Streamedia.net First Quarter Results Available.

Business Writers/Hi-Tech Writers

NEW YORK--(BUSINESS WIRE)--May 17, 2000

Streamedia Digital Solutions, a Business-to-Business Services

Unit, Will Propel Growth for Subsequent Quarters

Streamedia Communications, Inc., www.streamedia.net and www.streambroadcast.com (NASDAQ:SMIL - news, SMILW - news; BOS:STA,STAW), reports that its financial results for the quarter ending March 31, 2000, were filed on Form 10-QSB with the Securities and Exchange Commission on May 15, 2000.

The 10-QSB can be viewed at such sites as www.freeedgar.com.

The Company will host a conference call for investors, analysts, and all other interested parties at 4:15 p.m. EST  on Thursday, May 18. U.S. participants may dial 800/523-6213 to join in the call; international participants should dial 847/413-2907. The pass code number is 2351873. Participants will be able to ask questions of management following the executive presentation period.

A digital tape replay of the call will be accessible beginning one hour after the close of the live call and will remain available until May 19, 2000. To access the replay, dial 800/476-3988 or 402/220-5208 and enter pass code 2351873. Streamedia will also stream the audio file from www.streamedia.net as well as post a transcript of the proceedings.

"During the first quarter, Streamedia executed its plan to invest in the development of its infrastructure, personnel pool, and consulting services delivery systems," said James D. Rupp, President and CEO. "This planned, essential investment represents what might to some appear to be large expenditures over a short period of time. However, these expenditures were required to build the delivery capacity we have promised as part of our business plan. We are happy to report that these infrastructure investments have paid off-Streamedia Digital Solutions has now been awarded several contracts, and we are beginning to fulfill on those deliverables. We hope that these revenues, in conjunction with our imminent relaunch of the Streamedia NetWorks, will prove that we have accomplished a great deal towards achieving our business goals."

CFO Nicholas Malino notes that, "Streamedia Digital Solutions has been attracting attention now that we have begun to actively market our broad line of services. Business prospects appear better than we had anticipated. We expect that these prospects will become evident in our top line growth for subsequent quarters of this year."

About Streamedia Communications

Streamedia Communications, Inc. (www.streamedia.net) is a digital media and broadband entertainment company broadcasting via the Internet. Its showcase product, The Streamedia Networks(TM), integrate entertaining, interactive, streaming audio and video with dynamic, personalized news and information feeds delivered via its own StreamWire(TM).

Streamedia's professional broadcast producers create original, compelling programming for all audiences.

Streamedia has launched the first of its planned networks and their associated channels on the Web including the Streamedia Sports Style Network, Crime Broadcast, Women on the Edge, and the Streamedia Motion Art Network. The soft launch for these channels may be viewed at http://www.streambroadcast.com.

Key enhancements to the technology and viewer experience, as well as a broader range of content, will be added during the second quarter.

The Bijou Cafe, at www.bijoucafe.com , was recently acquired by Streamedia. Bijou Cafe is a leading independent film and digital entertainment destination site, and was recently hailed by USA Today as a "fun cyber-art-house with wide-ranging eclectic fare, from vintage serials and cult oldies to cutting-edge shorts and animation."

The Bijou Cafe.com web site will soon be tightly integrated into the expanding Streamedia Networks, and receive the full benefit of the Networks' substantial technical and aesthetic upgrade during the second quarter. With this acquisition, Streamedia has advanced its presence in the critical online film distribution industry.

The Streamedia Digital Solutions(TM) umbrella, a set of business-to-business solutions, includes rich media production services, technical services, web development and integration, encoding, hosting and streaming.

A first step for most clients is a media asset analysis, which Streamedia's technical and content experts conduct to determine how a corporation, organization or Web site can best deploy its resources and outsourcing options.

Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.

Factors that could cause or contribute to such differences include continued acceptance of the Company's products in the marketplace, the timing of significant orders, delays in the Company's ability to develop or ship new products, market acceptance of new products, competitive factors, general economic conditions, currency fluctuations, and other risks detailed in the Company's registration statements and periodic reports filed with the Securities and Exchange Commission.

By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.