DIRECTV Agreement With Action Adventure Network Marks Entry Into Original Firs-Run Entertainment.

LOS ANGELES--(BUSINESS WIRE)--Nov. 11, 1997--TELESCENE FILM GROUP(ME:TFG.B.) (TSE:TFG.B.) Telescene Film Group, Richmel Productions and Goodman/Rosen Productions have established a new $200 million- plus venture -- Action Adventure Network (AAN) -- and signed an agreement with DIRECTV, Inc. for AAN to arrange for the development and production of the first original television movies and series to air on DIRECTV.

AAN's agreement with DIRECTV, which has more than 3 million subscribers, marks the first time in the United States that a direct broadcast satellite television service will serve as the exclusive platform to premiere first-run entertainment prior to it being sold to syndication or other traditional distribution platforms.

The new venture, which will arrange for the development and production of original programming for the global marketplace, will work with major creative and acting talent. AAN has already signed executive production agreements, or is in final negotiations, for John Landis and Leslie Belzberg's St. Clare Entertainment, Francis Ford Coppola's American Zoetrope and Steven deSouza for feature- length, first-run, action-adventure two-hour episodes followed by multiple one-hour episodes based on each initial program. These programs will be produced or co-produced by Telescene.

In its first year, AAN will deliver four original two-hour initial episodes with budgets averaging $3 million per picture. Production on the initial programming package will commence in the first quarter of 1998 and air on DIRECTV next summer. Each of the two-hour initial episodes will serve as the series premiere for 20 one-hour episodes in year one, and 22 one-hour episodes in years two and beyond. In year two, AAN will supply four more original two- hour shows followed by series commitments. The programming will air on the DIRECTV TICKET Pay Per View service during primetime.

"I was an early fan of the idea of DIRECTV," said Coppola. "I was fascinated by the idea, sought them out, visited their broadcasting facility in Colorado, and of course, am very proud of its success. DIRECTV was the first programming service to offer "Apocalypse Now" in wide screen, high-definition format. Zoetrope is thrilled to be part of AAN and its venture with DIRECTV to create new and original programming."

"St. Clare's first venture into syndication has been with Buena Vista Television as executive producer of the "Honey I Shrunk The Kids" series, which has been tremendously successful," said Landis. "So we look forward to further adventures in television and around the world with our AAN partners."

According to Bruce Moccia, executive vice president of Telescene Film Group (USA), Coppola's first project for the venture is a contemporary version of "Dr. Jekyll and Mr. Hyde", which will be set in Hong Kong. The St. Clare project is an update of Sir Arthur Conan Doyles's "The Lost World." Additional AAN projects will be announced later this year.

"DIRECTV gives AAN a prestigious U.S. distribution platform where AAN can market and promote its titles," said Moccia. "This will enhance the value of our properties by creating a recognized brand before the U.S. rights are sold to traditional platforms such as network television, syndication, pay television or cable television."

"The action-adventure genre is extremely popular with movie and television lovers, and DIRECTV is excited to bring our subscribers what promises to be unparalleled entertainment from some of the biggest names in the film and television business," said Stephanie Campbell, senior vice president of Programming for DIRECTV. "We are very pleased to be the first source in the United States to air programming from AAN."

"The television marketplace, while highly competitive, is always open to original, high-quality productions," said Moccia. "With the formation of AAN, we will target projects that will deliver a special cache to the broadcast/cable entities that will air them."

These agreements were brokered by David Tenzer of CAA, who represented Coppola and Landis, Howard Abrahamson of Behr and Abrahamson, who represented Landis, Eric Weissler of Armstrong Hirsch who represented American Zoetrope and Mark Itkin of the William Morris agency, who represented deSouza. Dan Black of Heenan Blaikie represented AAN.

All television, video, licensing/merchandising and sponsorship rights for these properties in the United States will be marketed by AAN, while Telescene Film Group will market these rights in Canada and the rest of the world.

Richmel Productions is a diversified entertainment company involved in television production, marketing and promotion, and strategic thinking for major media companies. Rich Melcombe, president and CEO of Richmel, created and executive-produced NBC's "Camp Cucamonga" movie, TBS "Our Gang" sitcom and syndication's "The Grudge Match." Richmel has produces major promotional campaigns for NBC, ABC, CBS, Buena Vista Television, Universal Television, Telepictures, Sony and TCI/Liberty Media.

Goodmam/Rosen Productions has been involved in numerous international television ventures and theatrical films over the past decade. Partners Gary Goodman and Barry Rosen have produced nearly 200 hours of syndicated television programming, including "Police Academy", "Zorro: The Legend Continues", "The Mighty Jungle", and "Highlander". They have also produced such highly acclaimed and highly rated television movies as "Quarterback Princess", "The Stranger Within" and "The Cisco Kid".

Founded in 1977, Montreal-based Telescene Film Group Inc. has developed and produced award-winning features and broadcast/cable television series, miniseries and movies in both English and French for the global marketplace. Some of Telescene Film Group's high- profile projects include the multi-award winning miniseries "Hiroshima" along with the series "Student Bodies" and "The Hunger". Telescene Film Group (USA) is based in Los Angeles and the company's Telescene Entertainment unit is based in New York City.

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CONTACT: Telescene Film Group Inc.

Paul Painter, 514/737-5512