Avenue Entertainment Group Inc. Reports First Quarter Operating Results.

Business & Entertainment Editors

NEW YORK--(BUSINESS WIRE)--May 16, 2000

Avenue Entertainment Group Inc. (AMEX:PIX), an entertainment company focused on the production of high-quality film entertainment and television content, today reported a net loss of approximately $454,610 or a basic loss per share of $.10 for the quarter ended March 31, 2000, as compared with a net loss of approximately $307,479 or basic loss per share of $.07 for the quarter ended March 31, 1999.

The increased loss for the quarter ended March 31, 2000, was primarily the result of decreased revenues. The results for the quarter ended March 31, 1999, included an unrealized gain on trading securities and gain on sale of investments of $30,268 and $24,480 respectively.

Cary Brokaw, president and chief executive officer, commented "Owing to the production delay of several feature films and movies for television, we fully expected reduced revenues for the first two quarters. We remain excited about the many high-quality film and television projects in development and expect revenues to increase significantly, with our production activity, in the last two quarters of the year."

Avenue Pictures will produce "WIT" based on Margaret Edson's Pulitzer Prize winning play starring Emma Thompson and directed by Mike Nichols for HBO. The company also expects one or more of the feature films developed under its three year co-financing agreement with Intermedia will commence production in the fall.

Avenue Entertainment Group is a multifaceted entertainment company comprised of four complementary units: Avenue Pictures (motion picture production); Avenue Pictures Television (television movie, cable movie and series television production); Wombat Productions (documentary and profile productions); and Avenue New Media (content creation and e-commerce).

This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements. The forward-looking statements contained herein represent the company's judgment as of the date of this report hereof, and the company cautions readers not to place undue reliance on such statements.

An unaudited summary of Avenue's revenues and results of operations for the first quarters ended March 31, 2000, and 1999 is as follows:

                                   Quarter Ended       Quarter Ended
                                  March 31, 2000      March 31, 1999
                                  ---------------     --------------


Revenues                       $          99,926       $     177,669
Loss before income tax                  (454,482)           (305,478)
Income tax expense (benefit)                 128               2,001
Net loss                                (454,610)           (307,479)
Basic loss per share                        (.10)               (.07)