Avenue Entertainment Group Inc. Reports Increased Revenues and Reduced Loss In Year-End Operating Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 18, 2000

Avenue Entertainment Group Inc. (AMEX:PIX), an entertainment company focused on the production of high-quality film entertainment and television content, today reported results for the fourth quarter and year ended Dec. 31, 1999.

Revenue for the year rose to $4,748,660 from the prior year's revenue of $828,732. The net loss was $1,370,254, or basic loss per share of $0.32, for the year ended Dec. 31, 1999, as compared with a net loss of $2,057,131, or basic loss per share of $0.50, for the year ended Dec. 31, 1998.

The decreased loss for the year was primarily the result of increased revenues earned by Avenue Pictures in connection with the cable television movie "The Timeshifters."

Cary Brokaw, president and chief executive officer, commented: "While 1999 has been a disappointing year as a result of the production delay of several feature films and movies for television, we are very excited about the many high-quality film and television projects in development.

"We believe the company is turning an important corner and expect our production activity to significantly increase in both the film and television arenas as we also explore business and licensing opportunities on the Internet.

"With our recent 3-year co-financing agreement with Intermedia, we are well positioned to capitalize on the quality of our entertainment properties and achieve the results our shareholders deserve."

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 audited summary of Avenue's revenues and results of operations for the year ended Dec. 31, 1999 and 1998 is as follows:

                                Year Ended              Year Ended
                              Dec. 31, 1999           Dec. 31, 1998

Revenues                        $4,748,660              $  828,732
Loss before income tax          (1,368,587)             (2,113,822)
Income tax expense (benefit)         1,667                 (56,691)
Net loss                        (1,370,254)             (2,057,131)
Basic loss per share                 (0.32)                  (0.50)