American Interactive Media Debuts Innovative Business Model for Its WebPASSPORT Network Television Internet Service.

NEW YORK--(BUSINESS WIRE)--June 2, 1998--

- Marketing Partners, Co-Branding and Private Labeling, Value-Added

Content and Open Architecture Differentiate webPASSPORT Network -

American Interactive Media, Inc. (AIME; http://www.aime-inc.com) (OTC BB: AIME) debuted today the innovative business model for its webPASSPORT Network (WPN) television Internet service. WPN provides access to the most popular programming and content on the Internet and a variety of services and features such as e- mail, chat, customized content and unique original programming. The webPASSPORT Network business model and marketing strategy reflects the core focus of AIME's business which is to create high value on-line audiences for AIME's marketing and distribution partners.

Providing substantial private labeling and co-branding opportunities, AIME's partners will be able to enhance and extend relationships with their end-users. This unique positioning will allow AIME to quickly reach the broadest possible customer base through national and multinational partners in the telecommunications, utility, cable television and other industries. A development and technical trial relationship has already been announced with a major domestic Regional Bell Operating Company to enhance the webPASSPORT service with additional communications features.

With one-to-one marketing communications opportunities, WPN enhances distribution partners' existing customer relationships as it builds valuable WPN audiences. The webPASSPORT Network's flexible business models enable it to run in conjunction with any Internet service provider, as well as integrate the distribution partners' sales and marketing efforts and back-end services, such as billing, hosting and customer support.

Peter Yunich, Chairman & CEO of AIME, commented, "AIME recognized early in the game that the traditional retail consumer electronic model would not work. The Internet must be not only easy to access, but also deliver real value to the user. The bottom line for the Network is to provide our distribution partners a powerful marketing tool designed to be highly customized, integrating and delivering content and services to our partners' customers. The customer benefits from having an easy-to-use, competitively priced, value-added way to participate in the convergence of the Internet, telecommunications and television.

"Our distribution model is based on attractively priced monthly licensing fees paid by marketing partners for AIME's proprietary back-end system and content service as well as revenue sharing in advertising and commerce. The result is minimal cost to the consumer with significant profit potential to AIME's partners.

"For set-top Internet access to achieve true mass market penetration, the hardware purchase requirement must be eliminated. Ours is a cellular telephone model, delivering a service with both high utility and high perceived value to the customer with as few decisions as possible. Because our business model is focused on accelerating WPN market penetration through business to business channels, the actual consumer price points -- including bundled hardware -- are more than competitive with those of traditional Internet access providers. This approach is being well received in our marketing partner conversations."

webPASSPORT Network enables viewers to access the Web as easily as they change television channels. In addition to providing viewers a world-wide Web portal, WPN delivers co-branded content featuring some of the biggest brands on the Web as well as original programming, all optimized for viewing on a conventional television. In addition to offering free e-mail, chat and user-personalized Web content viewing through a special feature called "My Channel," the webPASSPORT service will also introduce original programming from WebFeat, the innovative programming arm of American Interactive Media. The webPASSPORT Network will deliver WebFeat's ComedyNet Network (http://www.comedynet.com), launched last month at the National Cable Television Association convention. ComedyNet will be joined by other original programming offering the webPASSPORT user a broad array of entertainment, educational and informational content available through no other set-top service.

The WPN service is being introduced in connection with the webPASSPORT Internet Access Appliance. This device, designed and manufactured to specifications developed by American Interactive Media, provides superior price performance with no sacrifice in features or functionality. The service also incorporates the webPASSPORT Browser which, with full 3.2 HTML compatibility, has been designed with the television user in mind. It offers an easy to use interface that is intuitive and optimized for television based Web access.

Unlike its competitors, the webPASSPORT Network is platform independent, with a software architecture based on open standards designed to run across a variety of platforms, enabling seamless future migration. The webPASSPORT Network is being ported for delivery on additional platforms including RCA's analog and advanced analog set-top boxes, Scientific-Atlanta's broad band cable modem platform and Philips' current analog and future advanced platforms. Development discussions are also underway to enable the Network to support other leading Internet browsers. The service supports all communication protocols including Ethernet, ISDN, ADSL, 33.6k, 56k and cable modems. Initial customers will take delivery of devices using both traditional 33.6 k telephone modems or a 10 Base-T connection.

American Interactive Media, Inc. (AIME) is dedicated to delivering proprietary, aggregated and licensed digital content and other Internet-based services. WebFeat, Inc. is AIME's proprietary digital content production subsidiary.

AIME's webPASSPORT Network, provides easy-to-use, inexpensive Internet access, customized interactive services delivered to conventional televisions. The webPASSPORT solution utilizes an Internet access device and browser as well as AIME's proprietary content and back end software and infrastructure. The webPASSPORT service was developed for distribution through marketing partners in a range of industries including telecommunications, banking and financial services, cable television, utilities, publishing, retailing and charitable and other affinity organizations. These organizations look to webPASSPORT to enhance their customer relationships with value added services and improved customer communications.

Certain of the information presented herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors over which the company has little or no control. Such factors include general economic and business conditions and commercial acceptance of the company's products and services.

    CONTACT: Company Contact:
              Peter B. Yunich
              Chairman and CEO
              212/539-0700, [e-mail]
                          or
              Investor Relations Contact:
              David Collins/Robert Rinderman
              Jaffoni & Collins
              212/835-8500, [e-mail]
                          or
              Media Contact:
              Richard Lewis
              Richard Lewis Associates
              818/995-9199