5th Avenue Channel Receives Equity From Fusion Capital.

Business Editors

MIAMI--(BUSINESS WIRE)--May 5, 2000

5th Avenue Channel Corp. (Nasdaq:FAVE), today announced it has commenced its equity financing with Fusion Capital Fund II, LLC, a Chicago based investment fund, under a $6.0 million equity purchase agreement. The Company has an option to require Fusion Capital to enter into a second $6.0 million equity purchase agreement. Under each equity purchase agreement, Fusion Capital has committed to purchase up to $6.0 million in common stock at a price based upon the future performance of the common stock without any fixed discount to the market price. Proceeds of the financing will be used to expand the Company's Internet content production, increase the scope of its Net Video Finance division programming, and maximize its strategic alliances.

In order to give 5th Avenue Channel the greatest control and flexibility over this financing, 5th Avenue Channel has negotiated several key features with Fusion Capital. First, Fusion Capital has agreed not to engage in any direct or indirect short-selling or hedging of the common stock. Second, 5th Avenue Channel has the right to prevent any purchase of common stock when the price is below $8.25. Third, 5th Avenue Channel has the right to terminate the agreement at any time without any cost to 5th Avenue Channel.

"We are extremely pleased to have $12.0 million of equity capital available to us under such favorable terms," commented Chairman and CEO Mel Rosen. He added, "This kind of flexible funding will enable us to expedite our business plan on our own time schedule."

5th Avenue Channel Corp. is creating and aggregating television and video content making it available in streaming on-demand form on the Internet. The company also operates wireless cable systems in Wisconsin and Costa Rica and 5th Avenue Channel Retail, Inc., a business-to-business sales division that sells products to mass market retailers across the country.

Fusion Capital is an innovative, broad-based investment fund located in Chicago, Illinois and is dedicated to meeting the business needs of its partner companies. Fusion Capital offers a wide range of investment products ranging from special situation financing to long-term strategic capital.

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.