American Film Technologies Signs Broadband Deal With Industry Leader, Microcast, Inc.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 29, 2000

American Film Technologies, Inc. ("AFTC") (OTCBB: AFTC) announced today that Microcast, Inc. (www.microcast.net), the world's highest capacity turnkey provider of Internet video services, has signed a letter of intent to enter into a partnership for broadcasting content owned, branded or distributed by AFTC over the Internet.

Microcast has developed the largest video-streaming network, with a current capacity to deliver up to 1,000,000 simultaneous viewers at broadband speed.

Using its proprietary technology, Microcast will deliver high quality programming to AFTC's web site at www.aftmedia.com for worldwide Internet distribution. In addition, Microcast will host AFTC's programming on its servers, allowing video-on-demand viewers to access AFTC content any time and any place.

Microcast will seamlessly insert video commercials into AFTC programming in real-time on a demographically targeted basis. This feature allows a 45-year old female in New York and a 25-year old male in Los Angeles to simultaneously view the same AFTC video stream and receive different commercials specifically targeted at the end-user.

Microcast's video hubs are hosted on the fiber optic backbone of the nation's largest Internet bandwidth providers, spanning the world with its partners, AT&T (NYSE: T), MCI Worldcom--(UUnet) (NASDAQ: WCOM) Sprint (NYSE: PCS), Cable & Wireless (NYSE: CWP), CerfNet and Qwest (NYSE: Q).

Historically, AFTC's principal business has been the production of color versions of motion pictures and television programs originally produced in black and white. Under AFTC's new strategic direction, the company plans to utilize its proprietary processes to restore, modernize and preserve classic films and TV shows while building and distributing its own library of proven content. The partnership with Microcast would provide a strong conduit for AFTC to generate licensing fees, advertising and e-commerce revenue over the Internet.

Adding to the interactive experience, viewers will have immediate access to information and the opportunity to purchase AFTC's products, DVDs, VHS Tapes, and advertiser's service or products online. AFTC believes the ability for different people viewing the same Internet programming to receive different commercials will establish a platform for demand-creation advertising with instant demand-fulfillment capabilities.

Fred Rudy, AFTC's Chairman and CEO said, "we chose Microcast as our partner after a careful review of applicable "streaming" technologies. Our decision was based on several factors: Microcast has the world's largest Internet video-delivery network with patent-pending ad-insertion software, which sets the stage for AFTC to systematically generate advertising and e-commerce revenue on a sustainable basis. Microcast's ability to target commercials to specific behavioral and demographic groups should enable us to generate advertising fees higher than can be generated on either TV or traditional Internet channels. We are particularly impressed with Microcast's massive infrastructure and strategic partners, which collectively support a total of over 80 million Internet users. We believe this unprecedented access and our partnership with Microcast will provide AFTC with a strong foundation to build a robust advertising and e-commerce driven Internet distribution model."

"All of us at Microcast are extremely excited about the AFTC partnership and look forward to assisting American Film in the development of its Internet and broadband business," said Paul Nash, CEO and Founder of Microcast. "As a content aggregator, AFTC has the unique ability to develop specialized broadcasts for niche online audiences throughout the world. This distinct programming advantage provides a solid branding and advertising opportunity for both companies, and complements Microcast's highly targeted full motion broadcast commercial technology, which provides the viewer with real-time purchase capabilities for the products being advertised. The combination of American Film's classic content with Microcast's streaming technology is another example of how converged-media can successfully deliver desirable entertainment programming over the Internet."

About Microcast

Microcast, founded in 1998 and based in New York City and Danbury, CT, is the broadcast standard of the Internet. The company provides content partners with a turnkey video streaming service, advertisers with unparalleled one-to-one relationship marketing capabilities and consumers with live and archived video programming on demand.

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.