American Film Technologies Announces Formation of Broadband Division for Development of Internet Streaming, E-Commerce and Interactive Consumer Opportunities.

Business & Technology Editors

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

AFTC Establishes Website At AFTmedia.com

American Film Technologies, Inc. ("AFTC") (OTCBB:AFTC) today announced the formation of its Broadband Division to further develop its patented technology for use with streaming-video, HDTV and other broadband applications. As part of this initiative, AFTC has created a website at AFTmedia.com, which is intended to stream seamless Video-on-Demand to Internet users on a worldwide basis.

The AFTC website is being developed to provide consumers with scores of choices from the vast array of classic motion pictures and TV shows around the world. The site is expected to provide advertisers with a highly targeted audience, while providing AFTC with integrated e-commerce and multi-layered interactive components. While viewing streamed content, AFTmedia.com's audience will be able to purchase products, learn more about what they are watching and have a more rewarding entertainment experience than those offered by traditional media sources.

Historically, AFTC's principal business has been the production of color versions of motion pictures and television programs originally produced in black and white. Now, the company intends to utilize its proprietary process to restore, modernize and preserve classic films and TV shows while building and distributing its own irreplaceable library of proven content. This new content will provide a platform for AFTC to generate licensing fees, advertising and e-commerce revenue from a variety of sources, including broadcast, cable, DVD, VCR, and all emerging digital and broadband distribution channels.

Commenting on these developments, Fred Rudy, AFTC's Chairman and Chief Executive Officer said, "we have developed a new and comprehensive business strategy that combines our proven technology with new-media opportunities. Through our Broadband Division, we are shifting the company in an exciting and new direction. It is our belief that demand for content will grow with each new digital product and the emergence of new markets throughout the word. We intend to use American Film's patented technology to help us aggregate and distribute content on a global scale. Our objective is to provide country-specific development and programming for delivery through traditional channels, streaming video, broadband distribution and digital set-top boxes."

Except for the historical information contained herein, this press release includes forward looking statements which are subject to a number of risks and uncertainties, including the risks and uncertainties associated with rapidly changing technologies such as the Internet and the risks of technology development. Actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include, but are not limited to, the factors and risks discussed in AFTC's reports filed from time to time with the United States Securities and Exchange Commission (SEC). For more information about these risks and uncertainties, see the SEC filings of AFTC.