Andersen Group, Inc. Announces Funding of Russian Cable TV and Internet Joint Venture.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 3, 2000

Andersen Group, Inc. (NASDAQ: "ANDR") has announced that the first of three defined tranches of equity funding of ComCor-TV has been completed after Moscow Telecommunications Company (also known by the acronym "COMCOR"), one of the two principal shareholders in ComCor-TV, and ComCor-TV received all the necessary approvals to enable the transaction to be legally closed. As part of the closing, Andersen Group's affiliate, Moscow Broadband Group Limited, formerly known as Treglos Investments Limited and the other principal shareholder in ComCor-TV, transferred $8.5 million in cash and a portion of its equity interest in the Institute for Automated Systems ("IAS") into ComCor-TV. COMCOR transferred licenses, permits, a portion of its ownership of IAS, and access to the Moscow Fiber Optic Network (MFON), which is the backbone of the hybrid fiber optic-coaxial cable network which ComCor-TV will utilize to bring "last mile" broadband telecommunication services to an expected 1.5 million homes and businesses in the Moscow region.

Moscow Broadband Group will also make certain additional defined payments during the period through the next funding date, which is expected to be in December 2000. Under terms of the General Agreement among COMCOR, ComCor-TV and Moscow Broadband Group executed on January 31, 2000, Moscow Broadband Group will make two additional equity investment tranches, the next of which is scheduled to occur in December. Consummation of the subsequent funding tranches is dependent on the fulfillment of certain defined conditions, among which is that minimum subscriber plateaus be achieved in the interim period.

Francis E. Baker, Andersen Group's Chairman and President of Moscow Broadband Group, stated "This first round funding represents the formal start of the program to bring quality cable TV and Internet services to the people of Moscow through the completion of local network access. During the past two months, additional build-out of the local network has occurred and the necessary coding equipment for premium channels has been put into place. We fully expect that ComCor-TV will begin generating revenues in the month of April, with further growth in both cable TV and Internet services being achieved over the next several months. ComCor-TV is now marketing these services to more than 48,000 homes, and is scheduled to complete the build-out to 85,000 homes by June 2000."

Background

Through press releases and filings with the Securities and Exchange Commission during the period from February 1, 2000 through February 18, 2000, Andersen Group announced its participation with a group of investors in Moscow Broadband Group, and with COMCOR to develop and market cable TV, Internet and data transmission and telephony services throughout Moscow through jointly owned ComCor-TV. Andersen Group has a 25% ownership interest in Moscow Broadband Group, which in turn has an approximately 50% ownership interest in ComCor-TV. The remaining 50% interest in ComCor-TV is held by COMCOR. ComCor-TV is licensed for broadband access to 1,500,000 homes and businesses in the Moscow area.

Andersen Group, Inc. is a US-based venture capital company listed on NASDAQ (symbol "ANDR"). Andersen is focused on direct investment opportunities in Internet and broadband communications in Moscow, the FSU (Former Soviet Union) and Eastern Europe. Through Moscow Broadband Group Limited, a Cyprus-based limited liability company which has approximately a 50% ownership interest in ComCor-TV, Andersen provides management and financial advisory services to ComCor-TV. Andersen currently maintains passive investments in Russia and Ukraine. Andersen also consolidates its wholly-owned subsidiary, The J.M. Ney Company, a precious metals and precision parts manufacturer located in Bloomfield, CT.

Moscow Broadband Group is a privately-held, Cyprus-based limited liability company which was formed for the purpose of making investments in Russia and other countries which were formerly part of the Soviet Union. In March 2000, it completed a private placement of its shares, in which it raised $18 million in proceeds. Prior to this private placement, Moscow Broadband Group was 50% owned by Andersen Group, Inc.

Forward-Looking Statements

This report contains forward-looking statements which reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company cautions investors that any forward-looking statements are subject to risks and uncertainties which may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Such statements contain a number of risks and uncertainties, including, but not limited to (i) regulatory changes in the Russian Federation that may affect the cable and telecommunications industries; (ii) changes in economic and political conditions in Russia that could adversely affect the level of demand for cable and telecommunications services; (iii) higher than anticipated start-up costs associated with new business opportunities; (iv) higher than anticipated employee levels, capital expenditures, and operating expenses; (v) consumer acceptance of broadband services, including telephony and data services; (vi) increases in fraudulent activity with respect to broadband services; or (vii) delays in the development of anticipated technologies, or the failure of such technologies to perform according to expectations.