5th Avenue Channel Announces First Quarter Results.

Business Editors/Technology & Entertainment Writers

MIAMI--(BUSINESS WIRE)--May 19, 2000

5th Avenue Channel Corp. (NASDAQ:FAVE) has filed its quarterly results form 10-Q with the SEC. Losses for the quarter amount to $2,689,912 based on revenue of $464,974, as compared to revenue of $1,162,640 and losses of $1,008,186 for the comparable quarter in 1999. The decrease in revenue for the quarter was due to a change in product mix and the seasonality of products sold. However, the company already has approximately $716,500 in purchase orders during this second quarter. Over one half of the designated losses represent non-cash expenditures or television and website development costs.

First quarter results reflect an aggressive investment in the company's television and internet division and attendent increases in general administrative expenses. NeTVideoNetworks.com, 5th Avenue Channel's wholly-owned subsidiary, harnesses the convergence of television and broadband to bring video to the internet and the internet to television through enhanced television and creative programming. The Company has completed construction of its own studio facility with digital video servers and state-of-the-art production methodologies, including satellite uplinks. In addition, 5th Avenue Channel has staffed the channel and web site with 24/7 data and news feeds from Bridge, AP, Reuters and ABC News teams. As mentioned above, General and Administrative expenses rose, in part, due to rollout of the NeTVideoNetworks.com web site, which incurred $825,858 in development costs since January 1 of this year.

5th Avenue Channel has established a fully-staffed and equipped internet department, complete with state of the art servers and digital video production equipment. The company is effectively leapfrogging internet audio by going directly to broadband video. Through its focused investment, the NeTVideoNetworks.com unit now produces and distributes searchable, on-demand streaming video for the internet. By skewing content towards expert driven serious financial information, NeTVideoNetworks.com seeks to gain an important revenue source from companies wishing to reach information-hungry cable and internet viewers.

Actual first quarter results mask significant gains made over last year. By shifting our business model from product sales to television and internet, 5th Avenue Channel is positioned for sharper revenue growth due to distribution fees from streaming video and advertising revenue from our own satellite cable television channels as well as our own website. Separately, by plunging into the new economy through aggressive investments in talent and equipment, the Company moves to a potentially more constant and robust electronically based revenue stream.

At this month's National Cable Television Association Convention, 5th Avenue Channel premiered its Net Financial News programming and web simulcasts on state-of-the-art plasma screens in its two story exhibit booth.

5th Avenue Channel has enhanced its staff with several new key hires. Gary Manning became Director of Information Services on March 1st, 2000. Since joining the Company, he has planned, configured and installed the Hewlett Packard computer systems at both the main administrative offices in North Miami as well as the television studio complex in Medley, Florida.

Alex Freund joined NeTVideoNetworks.com as Chief Technical Officer. He brings 20 years of technical and management experience to the Company, and will play an instrumental role in moving the Company to the new internet business model.

Alex Gimenez, formerly with Apple Computer and CompUSA, is the new Global Sales Director for NeTVideoNetworks.com. He will leverage his significant sales experience to maximize revenue from the fully-functional NeTVideoNetworks.com cable and television channels.

Kevin Apper, previously with KWHY-TV in Los Angeles, is the new Senior Producer for Net Financial News. He brings NeTVideoNetworks over seventeen years of financial television experience.

This press release contains forward-looking statements. 5th Avenue Channel's actual results may differ materially from the results discussed, implied or forecasted in the forward-looking statements. Further information on the factors that could affect the actual results of 5th Avenue Channel Corp. are included in its Report on Form 10-K for the year ended December 31, 1998, which is on file with the Securities and Exchange Commission. 5th Avenue Channel Corp. assumes no obligation to revise or update any forward-looking statements contained in this press release.