Crown Media Launches Hallmark Entertainment Network in Israel Earmarking Network as First International Movie Channel to Air Regionally On Cable and DTH.

Business/Entertainment Editors

ENGLEWOOD, Colo.--(BUSINESS WIRE)--July 20, 2000

Notably, Hallmark is the First Channel to Provide Programming

in English, Hebrew, Arabic and Russian on all Platforms

Crown Media Holdings Inc. (NASDAQ: CRWN) today announced that it has completed its first phase launch of Hallmark Entertainment Network, the 24-hour international movie channel with Matav, Tevel and Golden Channels, three of Israel's major cable operators. It was also announced today that YES, Israel's first digital DTH service set to launch this month, will also carry Hallmark, making it Israel's first international movie channel and the only international channel to provide Israeli viewers programming in English, subtitled in Hebrew and Arabic and fully voiced-over in Russian.

"This is a significant move for any program provider and we are extremely proud to be one of the first international cable channels in the region," said Mark Grenside, Senior Vice President and Managing Director, Europe and Africa for Crown Media International, Inc. "Given our on-going success in launching the channel in other territories, most recently in the United Kingdom, we are confident that Hallmark's quality award-winning programming will prove equally successful throughout Israel."

"Mark has demonstrated his mettle in bringing this unequaled deal together," acknowledged David Evans, Crown Media's President and CEO. "He has a great understanding of the network and how to market it across cultures and territories."

Following a launch celebration in Tel Aviv with representatives from all four platforms and Israeli actress Mili Avital, (star of Hallmark's Arabian Nights) in attendance, Hallmark Entertainment Network began its initial cable broadcast last month on Tevel, Matav and Golden Channels. It launches this month as part of YES' inaugural launch. Hallmark Entertainment Network will then reach an initial 1.2 million households throughout the region.

Specifically created to appeal to a broad family audience, Hallmark Entertainment Network boasts a wide range of original and exclusive programming, much of it supplied under an exclusive agreement with Hallmark Entertainment, Inc., a worldwide leader in the production of movies for television. From epic miniseries bringing historical tales to life, such as Gulliver's Travels, Cleopatra and David Copperfield, to modern day favorites including The Legend of Sleepy Hollow and Rear Window, the channel is set to offer viewers some of the most original and absorbing programs ever to be screened in Israel.

Hallmark Entertainment Network is a global channel brand showcasing high-quality, award-winning original movies and miniseries. It is owned and operated by Crown Media International, Inc. a wholly owned subsidiary of Crown Media Holdings, Inc.

About Crown Media Holdings, Inc.

Crown Media Holdings, Inc. owns and operates pay television channels dedicated to high quality family programming. The Company currently operates and distributes three cable channels: Hallmark Entertainment Networks in over 70 international markets, the Odyssey Network in the United States and the Kermit Channel in Asia. Crown Media has more than 59 million subscribers worldwide.

Statements contained in this press release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. Words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Such risks and uncertainties include: competition and fluctuations in the availability of programming and fluctuations in demand for the programming we air on our channels, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission, including the Risk Factors included in the Company's registration statement, as amended, registration no. 333-95573, initially filed on January 28, 2000. Crown Media Holdings is not undertaking any obligation to release publicly any updates to any forward looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.