American Champion Signs Agreement With KTEH to Produce 28 More "Kanga Roddy" Episodes; Pact Will Allow Show To Be Aired Daily Throughout U.S. By Spring 1999.

HAYWARD, Calif.--(BUSINESS WIRE)--April 22, 1998--American Champion Entertainment Inc. (Nasdaq:ACEI) Wednesday announced it has signed an agreement with San Jose Public Broadcast Station KTEH to produce 26 additional half-hour episodes and two one-hour specials of its acclaimed new children's television series, "Adventures With Kanga Roddy."

Under the terms of the agreement, KTEH will pay American Champion $900,000 for the new episodes which are to be completed by May 31, 2000. KTEH is the co-producer of the show and KTEH has exclusive broadcast rights to distribute the program on Public Broadcast Service-affiliated stations nationwide.

Anthony K. Chan, American Champion's president and chief executive officer, said that, as a result of entering into this agreement, "Adventures With Kanga Roddy" will become available as a daily show by spring of 1999. He noted that the show had its national debut April 4, 1998 as a weekly program and expects it will soon reach more than 45 million households in major markets, including New York, Los Angeles, San Francisco/San Jose and Denver.

"The agreement for additional episodes is a major step forward for the show and for our company," said Chan. "It will provide greater national exposure and help make the Kanga Roddy character a household name, especially among children."

Starring Academy Award nominee Pat Morita of "Karate Kid" fame, Jennifer Montana and Karen Lott, the wives of football stars Joe Montana and Ronnie Lott, and an ethnically diverse cast of children, the show features a colorful 7-foot-tall kangaroo named "Kanga Roddy."

Using songs, dances and dazzling, non-violent martial arts, Kanga Roddy inspires and teaches children about values such as respect, compassion, humility and honesty. Joe Montana and Ronnie Lott are executive producers of the show, and Lott is a member of the board of directors.

"If quality content and production are the keys to a successful show, then I think 'Kanga Roddy' is going to be a success everywhere it runs," said Thomas E. Fanella, president of KTEH. "We can all feel that we have something unusual, creative and extraordinary on our hands."

"We are universally very excited," said Terrel Cass, chairman of New York-based Program Resources Group, and president of WLIW, the New York-based Public Broadcast affiliate. "The program's unique blend of superior production values, an appealing main character and the values most parents want their children to apprehend, make for a preschool children's program we are convinced will be effective and successful across the country."

American Champion Entertainment is also involved in licensing and merchandising rights related to the "Kanga Roddy" series, along with the development, production and marketing of various fitness tapes and workbooks.

In addition, the company operates five karate studios in California, under the name America's Best Karate Studios. -0-

Forward-looking statements in this news release involve risks and uncertainties, including, but not limited to, acceptance of the series by the public and public television stations, production delays and/or cost overruns, changes in external competitive market factors or in internal budgeting processes and unanticipated working capital or other cash requirements. For more information on the risks associated with American Champion Entertainment's business, see the company's publicly available filings with the Securities and Exchange Commission.

CONTACT: American Champion Entertainment Inc., Hayward

Anthony K. Chan, 510/782-8168

or

Pondel Parsons & Wilkinson, Los Angeles

Kristin Bruno or Roger S. Pondel, 310/207-9300