ACME Communications Announces First Quarter 2000 Results; Same Station Revenue Increases 27%; Same Station Broadcast Cash Flow Increases 49%.

Business/Entertainment Editors

SANTA ANA, Calif.--(BUSINESS WIRE)--May 3, 2000

ACME Communications, Inc. (NASDAQ: ACME), the nation's third largest affiliate group of The WB Television Network, today announced its results for the first quarter ended March 31, 2000.

ACME's net revenues for the first quarter rose 46% over the first quarter of 1999 to $16.2 million. Broadcast cash flow increased 36% to $3.6 million and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increased 40% to $2.7 million versus the comparable prior year period.

The improved revenues reflect the continued improvements in ratings at the Company's stations, expanding revenue shares in the markets in which they operate and the addition of four stations to the Company's group subsequent to the end of the first quarter of 1999 (WBDT-Dayton, WIWB-Green Bay / Suring, and WBUI-Champaign / Springfield / Decatur, acquired in June 1999 and KASY-Albuquerque / Santa Fe, acquired in December 1999). Both broadcast cash flow and EBITDA growth for the quarter were moderated by continuing start-up losses at the four newer stations.

On a same station basis, reflecting the results of stations owned or operated by ACME for the full comparable periods, first quarter net revenues rose 27% and broadcast cash flow increased 49% on the strength of increased ratings and market revenue shares. Broadcast margins for the first quarter of 2000 were 31% on a same station basis, compared to 26% for the corresponding period in 1999.

During the February 2000 television rating sweeps period, ACME's same station weighted average ratings for The WB Network prime time programming grew 22% in adult 18-49 viewers and 33% in adult 18-34 viewers over the February 1999 sweeps period. On a sign-on to sign-off same station basis, ACME's adult 18-49 ratings were up 18% and adults 18-34 were up 25% compared to the February 1999 sweeps period.

Jamie Kellner, Chief Executive Officer and Chairman of ACME, commented: "We continue to deliver strong top line and operating earnings growth, as measured by both broadcast cash flow and adjusted EBITDA, despite the fact that the revenue growth rates in most of the middle markets we serve were less robust than we had expected. Our flagship station serving St. Louis, KPLR, once again ranked as the number one WB Network affiliate in the country in prime time during the February sweeps period and continues to be one of the top two stations in St. Louis in many of our key demographic categories and day parts. We also enjoyed strong ratings performance gains, relative to our competitors, in both of our other metered markets - KWBP - Portland, OR and KUWB - Salt Lake City."

Mr. Kellner continued, "Our second quarter advertising revenue pacings are strong, but below our previous expectations due to more moderate advertiser demand. For the remainder of the year, we still expect to produce industry leading revenue growth and strong gains in our broadcast cash flow and our EBITDA. Further, we expect Nielsen to begin metering four other ACME markets, Albuquerque/Santa Fe, Dayton, Knoxville and Ft. Myers - Naples, within the next 18 months. This will strengthen our stations' ability to generate their fair share of advertising budgets through more accurate measurement of our younger audience base. In addition, we continue to search for attractive acquisition and start-up opportunities in the nation's mid-sized markets."

The senior management of ACME will hold a conference call to discuss its first quarter results on Wednesday, May 3, 2000, at 5:00 PM EDT. The call in number is 800-550-7368. A replay will be available through May 12th by dialing 800-633-8284 (US) or 858-812-6440 (Int'l), reservation code: 15127168. In addition, a replay will be available on the Company's web site at www.acmecommunications.com.

ACME Communications, Inc. owns and operates ten television stations serving markets covering 5.4% of the nation's television households, making the Company the third largest affiliate group of The WB Television Network. The Company's stations include KPLR-TV, St. Louis MO; KWBP-TV, Portland, OR; KUWB-TV, Salt Lake City, UT; KWBQ-TV and KASY-TV, Albuquerque/Santa Fe, NM (the nation's first official duopoly); WBDT-TV, Dayton, OH; WBXX-TV, Knoxville, TN; WIWB-TV, Green Bay/Appleton, WI; WBUI-TV, Champaign/Springfield/Decatur, IL; WTVK-TV, Ft. Meyers/Naples, FL. All of the Company's stations, except KASY-TV, a UPN affiliate, are WB Network affiliates. ACME's shares are traded on the NASDAQ Stock Market under the symbol: ACME.

Forward-Looking Statements:

The matters discussed in this press release include forward-looking statements. In addition, when used in this press release, the words "intends to," "believes," "anticipates," "estimate," "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including (but not limited to) the impact of changes in national and regional economies, successful integration of acquired entities (including achievement of synergies and cost reductions), pricing fluctuations in local and national advertising, volatility in programming costs, the availability of suitable acquisitions on acceptable terms and other risk factors set forth in the Company's Form S-1 Registration Statement filed with the Securities and Exchange Commission on July 30, 1999, pursuant to the Securities Act of 1933. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances. -0-

              ACME Communications, Inc. and Subsidiaries
                 Consolidated Statements of Operations
                              (Unaudited)
                 (In thousands, except per share data)

                                        For the Three Months Ended
                                                  March 31,
                                              2000        1999

Net revenues                               $ 16,218   $  11,123

Operating expenses:
   Station operating expenses                12,655       8,430
   Depreciation and amortization              5,444       3,766
   Corporate                                    908         721
   Equity-based compensation                    132       2,500

     Operating loss                          (2,921)     (4,294)

Other income (expenses):
   Interest income                              297           9
   Interest expense                          (6,356)     (6,466)
   Other                                         (1)          5

Loss before income taxes
 and minority interest                       (8,981)    (10,746)
Income tax benefit                            2,791      (2,255)
Loss before minority
 interest                                    (6,190)    (13,001)
Minority interest                                --         723

     Net loss                              $ (6,190)  $ (12,278)

Pro forma net loss per share:

Loss before income taxes and
 minority interest, as reported            $ (8,981)  $ (10,746)
Pro forma tax benefit                         2,791       4,297
Loss before minority interest                (6,190)     (6,449)
Pro forma minority interest allocation           --         451
     Pro forma net loss                    $ (6,190)  $  (5,998)

Pro forma net loss per share,
 basic and diluted                         $  (0.37)  $   (1.16)
Basic and diluted weighted average
 common shares outstanding               16,750,000   5,180,051


               ACME COMMUNICATIONS, INC. & SUBSIDIARIES

                                           Three Months Ended
                                                March 31,
                                          2000             1999
                                               (unaudited)

Supplemental Financial Data (in thousands):

     Program amortization               $ 2,949           $1,582
     Adjusted program payments            2,935            1,642
     LMA fees                                --               --

     Broadcast cash flow (1)              3,577            2,633
     Adjusted EBITDA (2)                  2,669            1,912


Balance Sheet Data (in millions) at March 31, 2000:

    Cash                               $  21.3
    Total debt (3)                     $ 222.5
    Total debt, net of cash            $ 201.2


(1) Broadcast cash flow is defined as operating income, plus
depreciation and amortization, program amortization, non-cash equity
based compensation, LMA fees and corporate expenses, less program
payments - the latter as adjusted to reflect reductions for impaired
or expired rights in connection with acquisitions.
(2) Adjusted EBITDA is defined as broadcast cash flow less
corporate expenses.
(3) Total debt includes the Company's 10 7/8% Senior Discount
Notes, 12% Senior Secured Notes and its capital lease obligations