Avenue Encounters Oil in Its First Exploration Well in Turkey; Testing of This Well is in Progress.

Business Editors

SHERMAN OAKS, Calif.--(BUSINESS WIRE)--May 27, 2003

Avenue Group, Inc. (OTCBB:AVNU) (Frankfurt:ITQ) (the "Company") announced today that its subsidiary Avenue Energy, Inc. ("Avenue"), was informed by Avenue's Joint Venture partner and drilling operator in Turkey, Aladdin Middle East, Ltd., that Avenue's first exploration well, the Tosun-1 Well in the Gaziantep petroleum district of Southeast Turkey, has encountered oil. Testing continues at Tosun-1 to determine if the discovery will become commercially viable.

The top of the primary drilling objective, the Derdere Formation, was encountered at 10,709 feet and a core was cut over the interval 10,717 to 10,727 feet, recovering 3 feet of fractured limestone with oil bleeding from the fractures. The Derdere Formation is oil productive in the adjacent Karakus and Cendere oil fields. Tosun-1 was deepened to the current depth of 10,758 feet after which an open hole Drill Stem Test (DST-3) was run over the interval 10,697 to 10,758 feet. The test recovered one stand of drill pipe filled with oil (32-34 API light oil), two stands of drill pipe filled with drilling mud with abundant oil shows and 5 stands of drill collars with salty water (30,000 ppm Cl) with oil and gas shows.

Following the test, the Operator commenced replacing the drilling mud in the well bore with water in order to lower the hydrostatic pressure in the well and reverse circulated the hole. During conversion of drilling mud to fresh water, approximately 100 barrels of light oil (between 32 and 34 API gravity) with gas was pumped into the mud pit, indicating that the well had started to produce oil against the lowered mudweight.

The operator is preparing to swab the well, and ongoing operations may include wireline logging, identification of the oil and water zones, followed by running 7 inch casing (if warranted), perforating of the potential payzone(s), acidizing of these zones and production testing.

At this early stage, although the results to date are encouraging, no determination can be made as to whether the discovery will lead to a commercial development at Tosun-1.

Avenue has earned a 45% working interest in the Tosun-1 well and the Tosun License.

The Company also announced that it has recently completed a private placement to accredited investors of 16,000,000 shares of the Company's restricted common stock for $4 million. S.B. Cantor and Co., acted as the exclusive placement agent for the Company in connection with the offering. Proceeds from this placement have and will be used primarily to fund its oil and gas activities, including the Tosun 1 well and the Company's working capital requirements. Certain registration rights were also granted to investors participating in the private placement.

The technical content of this release was provided by Dr. Jaap Poll, a Certified Member of the American Association of Petroleum Geologists (AAPG) and a Distinguished Member of the Petroleum Exploration Society of Australia (PESA). For technical information, please contact [e-mail]

Certain information contained in this Press Release is considered forward looking statements within the meaning of the Private Securities Litigation Act of 1995 (the "Act"), which became law in December, 1995. In order to obtain the benefits of the "safe harbor" provisions of the Act for any such forward-looking statements, we wish to caution investors and prospective investors about significant factors which, among others, have in some cases affected our actual results and are in the future likely to affect our actual results and cause them to differ materially from those expressed in any such forward-looking statements. This Press Release contains forward-looking statements relating to future operational and business prospects. Actual results may differ as a result of factors over which we have no control, including general economic and business conditions; competition; success of operating initiatives; operating costs; advertising and promotional efforts; the existence or absence of adverse publicity; changes in business strategy or development plans; the ability to retain management; availability, terms and deployment of capital; business abilities and judgment of personnel; availability of qualified personnel; labor and employment benefit costs; changes in, or failure to comply with various government regulations; slower than anticipated completion of research and development projects and movements in the foreign exchange rate. Future results with respect to oil and gas properties would be subject to the timing and amount of capital expenditures by us; drilling of wells; timing and amount of future production of oil and gas; operating costs and other expenses; cash flow and anticipated liquidity; prospect development and property acquisitions; and our marketing of oil and gas. Other factors which could affect our results with respect to its future oil and gas operation are the consummation of our acquisition of an interest in Anzoil Thailand and the timing of such transaction. These other factors include, among others: general economic conditions; oil and gas price volatility; our ability to find, acquire, market, develop and produce new properties; the risks associated with acquisitions and exploration; operating hazards attendant to the oil and gas business; downhole drilling and completion risks that are generally not recoverable from third parties or insurance; uncertainties in the estimation of proved reserves and in the projection of future rates of production and timing of development expenditures; potential mechanical failure or underperformance of significant wells; the strength and financial resources of our competitors and our ability to find and retain skilled personnel.