Big Entertainment Reports Formation of Huge Entertainment; Announces Fourth Quarter and 1997 Results.

BOCA RATON, Fla.--(BUSINESS WIRE)--March 31, 1998--Big Entertainment, Inc. (Nasdaq:BIGE) today announced that the Company, C.P. Group, and Dr. Martin H. Greenberg, CEO of the Company's 51%-owned subsidiary, Tekno Books, have agreed to contribute certain assets to a newly formed entity, Huge Entertainment, in exchange for equity ownership. Huge Entertainment is a pure-play content company which will focus on developing and licensing in multiple media formats the intellectual properties being contributed to it by its founders as well as additional intellectual properties which it will seek to obtain. Big will own 51.75% of the equity of Huge Entertainment and will contribute to Huge Entertainment 100% of its intellectual properties, its 50% ownership in NetCo Partners, and its 51% interest in Tekno Books. C.P. Group will contribute to Huge Entertainment its 50% ownership in NetCo Partners and two additional intellectual properties created by Tom Clancy. Dr. Martin H. Greenberg will contribute a 24.5% ownership in Tekno Books.

Commenting on the transaction, Mitchell Rubenstein, Big's Chairman and Chief Executive Officer, said, "The creation of Huge Entertainment consolidates our intellectual properties into a single entity with substantial long-term value. Huge will have a critical mass of intellectual property ("Content") that can be developed and licensed into multiple media formats, including television, feature films, on-line and video with relatively minimal overhead. By putting this critical mass of Content under one roof, Huge will be positioned to become a leading Content development company, undertake an initial public offering, and enhance Big Entertainment's shareholder value."

The Company also announced results for the fourth quarter and full year ended December 31, 1997. Revenues for the fourth quarter increased 94% to $4,872,818 from $2,517,777 in the fourth quarter of 1996. Net income for the fourth quarter was $253,976, or $0.03 per share, compared with a net loss of $1,944,363, or $0.33 per share, in the year-earlier period.

Revenues for all of 1997 increased 38% to $10,491,447 from $7,611,113 in 1996. Revenues do not include those attributable to the Company's interest in the NetCo Partners joint venture, which are accounted for as Equity in Earnings of NetCo Partners. The Company's 50% share amounted to $2,702,049 for 1997, as compared with a loss of $3,050 from NetCo Partners during 1996. Combined income (gross profit plus equity in earnings of NetCo Partners) increased by $4,860,205, or 181%, to $7,545,507 in 1997 compared with $2,685,302 for 1996. The net loss for 1997 was $2,995,347, or $0.51 per share, substantially below the net loss for 1996 of $6,655,609, or $1.23 per share.

"The strong revenue growth was due primarily to the higher revenues from our entertainment retail division," Rubenstein said. "The lower net loss for the year was primarily due to the Company's equity in the earnings of NetCo Partners."

Big Entertainment is a rapidly growing media company which owns and licenses intellectual properties and operates retail outlets.

(The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to, the risks described in filings with the Securities and Exchange Commission.) -0-

                        BIG ENTERTAINMENT, INC.
                   Consolidated Statements of Operations


                       Three Months Ended          Year Ended
                           December 31,            December 31,
                         1997       1996        1997         1996
Net revenues         $4,872,818  $2,517,777  $10,491,447  $ 7,611,113

Gross profit          2,216,155     910,714    4,843,458    2,688,352

Net income (loss)      $253,976 $(1,944,363) $(2,995,347) $(6,655,609)

Basic and diluted
 earnings (loss)
 per common share    $     0.03 $     (0.33) $     (0.51) $    (1.23)

CONTACT: Big Entertainment, Boca Raton

Mitchell Rubenstein, 561/998-8000