American Interactive Media Completes Restructuring.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 6, 2000

American Interactive Media, Inc. (OTC BB: AIME), a developer of branded programming for the Internet and other media platforms, today announced that it had completed its previously announced restructuring plan on December 30, 1999.

AIME also announced that it entered into a letter of intent with Allegro Property & Finance, Inc. (CDNX: AP) to merge the two companies, subject to the execution of a definitive agreement, approval of the companies' shareholders and other requisite approvals.

AIME assembled an investor group comprised of senior management, existing investors and new investors who contributed an aggregate of $1 million in cash and other property. As part of the restructuring, the new money and the holders of AIME's senior debt and preferred equity converted their senior positions (including options and warrants held by them) into AIME common stock.

As a result of these conversions, AIME has eliminated over $7 million of senior secured debt and $10 million convertible preferred stock from its balance sheet as well as the options and warrants held by the holders of its senior debt and preferred equity.

Allegro, AIME's planned merger partner, owns The Hotel Syracuse, a 600- room convention hotel in Syracuse, New York. The parties plan to merge Allegro into AIME and capitalize on the net asset value of the hotel. Pending closing of the merger, Allegro will commit to provide $1.5 million to AIME. AIME plans to utilize the hotel as a test bed for advanced Internet applications.

To facilitate the restructuring and the planned Allegro merger, AIME amended its Certificate of Incorporation to increase its authorized shares of common stock to 200 million shares.

"With an improved balance sheet and a fresh source of new capital to fund future operations", Mark Graff, AIME's President and Chief Executive Officer, said, "we can now focus on implementing our business model of developing branded programming for distribution over multiple delivery platforms, including Internet, broadband Internet, cable and DBS. Building on the widespread popularity of our ComedyNet.com site, we plan to revive production of new programming and are negotiating to add programming from strategic alliances with content providers with well known branded content."

AIME recently provided a live world-wide webcast of The Second City's 40th Anniversary Celebration. The Anniversary Celebration, which featured appearances by Robert Klein, Alan Arkin and several Saturday Night Live cast members, was a huge success and received favorable press coverage.

American Interactive Media, Inc., headquartered in New York City's Silicon Alley, creates original, branded entertainment programming that can be distributed across all media platforms, including the Internet, cable and satellite television and radio. AIME's current networks include ComedyNet, RomanceLand and CrimeBeat.

American Interactive Media, Inc. notifies readers that this news release may include comments that do not refer strictly to historical results or actions and may be deemed to be forward-looking within the meaning of the Safe Harbor provisions of the U.S. federal securities laws. Forward-looking statements involve risks and uncertainties including successful development and implementation of technology, acceptance of the company's products and services, competitive factors, new products and technological changes, and other such risks as each company may identify and discuss from time to time. Accordingly, there is no certainty that the companies' respective plans will be achieved.