CTN Media Group Announces First Quarter Results; Company Continues to Reduce EBITDA Losses and Net Operating Losses through Operating Efficiencies.

Business Editors

ATLANTA--(BUSINESS WIRE)--May 15, 2002

CTN Media Group, Inc. ("CTN")(NASDAQ: UCTN), which owns and operates College Television Network (the "Network"), the nation's leading broadcast television network for young adults ages 18-24, today announced results for its first quarter of fiscal 2002.

Revenue for the three months ended March 31, 2002 was $2,283,753 compared to $2,962,992 for the comparable period in the prior year. The Company reduced its EBITDA loss from continuing operations (excluding a cumulative loss in the amount of $197,000 resulting from a change in accounting principle) from $2,935,580 for the first quarter of 2001 to an EBITDA loss of $2,082,797 in the current fiscal quarter. Net loss for the current quarter amounted to $3,198,699 ($0.21 per basic and diluted share) as compared to a net loss (including a $197,000 charge resulting from the cumulative effect of a change in accounting principle) of $4,450,219 ($0.32 per basic and diluted share) for the same quarter one year ago. Approximately $615,000 of expense reductions were attributable to the cessation of activity related to Link Magazine publishing and the iD8 advertising agency. Additional savings were realized through reductions in employee headcount and other cost containment measures.

During the current year and the last fiscal year, the Company's strategy regarding the Network has been to expand the number of advertisers on the Network and maintain the existing affiliate base of institutions in which the Network is offered. The Company believes it has reached a sufficient critical mass of audience to effectively attract and retain advertisers. CTN projects that nearly 8.2 million college students view CTN every week in their current affiliate locations across approximately 775 campuses nationwide, based on estimates from the October 2001 Nielsen Media Research audience measurement. The Company will now focus on increasing inventory sell-out percentages by obtaining a larger group of advertisers. National advertisers on the Network during fiscal 2001 included AOL/Time Warner (Warner Bros.); AT&T Corporation; The Andrew Jergens Co. (Biore); Best Buy Company, Inc.; Bristol Meyers Squibb (Clairol); Burger King Corporation; Duckhead Apparel Company, Inc.; Hershey Foods Corporation; Johnson & Johnson; Kellogg Company; K-Swiss, Inc.; Levi Strauss & Co.; New Line Cinema Corporation; Procter and Gamble Co.; Reebok International; S.C. Johnson & Son Co.; Sony Corporation; Twentieth Century Fox Home Entertainment (News America Group); U.S. Army; Visa International Service Association; The Walt Disney Company; and Wendy's International.

The Company continues to refine and streamline its operations while rendering full support to the College Television Network. Patrick Doran, CTN's Chief Financial Officer said, "the Company has just completed its Spring Break Concert Tour which was tremendously successful. This grass roots marketing effort was very well received by the college students as well as CTN's advertisers. Diverse and innovative programming and sponsorship opportunities such as these should help the Network increase its revenue potential." CTN has already forged new relationships with entities such as ABC News, ESPN and The History Channel.

CTN continues to attempt to obtain financing to bridge certain working capital deficits in 2002, some of which is attributable to the seasonality of its business. U.C. Holdings, LLC is currently financing CTN's working capital deficits through a bridge loan facility; however, there are no assurances that Holdings will continue to provide funding.

In July 2001, the Company sold Armed Forces Communications, Inc., a New York corporation doing business as Market Place Media ("MPM"). Accordingly, MPM's separate results are reported as discontinued operations in the Company's financial statements for fiscal 2001.

                                                 Three Months Ended
                                                      March 31
                                             -------------------------
                                                     (unaudited)
                                                  2002         2001
                                             ------------ ------------
Revenues                                     $ 2,283,753  $ 2,962,992


Net loss from continuing operations           (3,198,699)  (4,450,219)
Net loss from discontinued operations                 -       (91,762)
Dividends and accretion on preferred stock            -      (488,024)
                                             ------------ ------------

Net loss available to common stockholders    $(3,198,699) $(5,030,005)


Net loss per share:
    Basic net loss per common share from
        continuing operations                $     (0.21) $     (0.32)

    Discontinued operations                           -         (0.01)
                                             ------------ ------------
    Basic net loss per common share          $     (0.21) $     (0.33)
                                             ------------ ------------
    Diluted net loss per common share from
        Continuing operations                $     (0.21) $     (0.32)

    Discontinued operations                           -         (0.01)
                                             ------------ ------------
    Diluted net loss per common share        $     (0.21) $     (0.33)
                                             ------------ ------------
Weighted average number of
 common shares outstanding:

    Basic                                     15,086,547   15,075,165

    Potential dilutive                                -            -
                                             ------------ ------------

    Potential diluted                         15,086,547   15,075,165
                                             ------------ ------------

This press release contains forward-looking statements regarding the Company's business strategy and future plans of operation. Forward-looking statements involve known and unknown risks and uncertainties. These and other important factors, including those mentioned in various filings with the Securities and Exchange Commission made periodically by the Company (available to the public at http://www.sec.gov), may cause the actual results and performance to differ materially from the future results expressed or implied by such forward-looking statements, including, but not limited to: failure to meet revenue goals; cancellations by advertisers of ordered business; inability to satisfy future financing needs, including raising additional capital to continue as a going concern; decrease in the Company's stock price and potential delisting by Nasdaq; and the failure of the Company to retain and keep high level management, including salespeople. The forward-looking statements contained in this press release speak only as of the date hereof and the Company disclaims any obligation to provide public updates, revisions and or amendments to any forward-looking statements made herein to reflect changes in the Company's expectations or future events.

For further information, please contact Patrick Doran, Chief Financial Officer at [phone], or Thomas Rocco, President at [phone].