Auction Television Network, Inc. Announces Major Corporate Restructuring.

WARMINSTER, Pa.--(BUSINESS WIRE)--Dec. 23, 1998--The Auction Television Network (OTC BB:ATVW) announced today a major corporate restructuring designed to reduce its overall debt by nearly 70%.

According to the company's president, Edward C. Stanojev, Auction Television Network, Inc. removed approximately $1,300,000 of corporate debt from its balance sheet through a conversion to stock as part of its original 505 placement offer.

In a related move, the company will retire approximately 20% of the company's outstanding stock, 2.9 million shares, by divesting itself of a wholly-owned subsidiary, Single Source Technology (SST), a loudspeaker development company, pending shareholder approval.

"This restructuring further allows us to focus on ATVN's core business, Internet auctions and television broadcasting," said Stanojev.

"Our revolutionary software, combining both JAVA and WRAPPER/COM technologies, will allow us to conduct real-time auctions on the Internet and television simultaneously," he said.

ATVN technologists, led by Stephen McLaughlin, MIT graduate and veteran software designer, created a system that will automatically reach into the database of any business, to instantly auction slow-moving inventory for fast, seamless liquidation. "These new technologies, coupled with other enhancements currently under development, will enable real-time flexibility for a truly dynamic auction web site," says McLaughlin.

"When we unveil this system, we are confident that we can leap frog virtually all other Internet-based auction systems, with a flexibility and efficiency that has never been seen in this industry," Stanojev said. "This restructuring allows us to bring this system to market in the very near future."

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties or other factors which may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, without limitation, decline in demand for the company's products, and the effect of general economic conditions generally and factors affecting the Internet and auction industries.