The Marquee Group Announces Record 1st Quarter Results Pro Forma EBITDA Increases $1.6 Million.

NEW YORK--(BUSINESS WIRE)--May 15, 1998--The Marquee Group, Inc. (AMEX: MRT) today announced financial results for the first quarter ended March 31, 1998. Its much improved operating performance reflected the impact of significant business expansion in all of its product lines.

For the quarter, revenues were $11.5 million, compared to $2.0 million in the comparable quarter of last year, and the company had earnings before income taxes, depreciation and amortization (EBITDA) of $0.7 million compared to an EBITDA loss of $0.8 million in the previous year. The net loss for the quarter was $. This compares with a net loss of $0.8 million in the previous year's quarter.

Revenue for the quarter increased 206% to $11.5 million from the year earlier level of $3.8 million on a pro forma basis, assuming all acquisitions were completed on January 1, 1997. Similarly, EBITDA increased to $0.7 million from a loss of 0.9 million. The net loss of $16,000 compares with a pro forma net loss of $1.2 million in the previous year's quarter.

Robert M. Gutkowski, Marquee's President and Chief Executive Officer, said "We are extremely pleased to announce these first quarter results. Our exceptional revenue growth is based on our ability to provide a complete, integrated set of sports marketing and sponsorship services. Our reputation as a supplier of creative and unique service packages to sports organizations and individuals has allowed us to generate significant new business in all of our product lines. In event management, we gained approximately $3 million in incremental revenue from our management of the Guardian Cup, an ATP tennis tournament held for the first time in the UK. Increases in talent representation include improvement in our new football division as well as the successful Billy Joel tour. Our consulting business improved through the renewals of certain contracts at larger retainer fees, while sales and marketing revenues increased with our sale of naming rights for the Staples Center in Los Angeles and services provided to the PBA tour. Program and production revenue benefited from a number of successful new business initiatives including the PBA tour broadcast on ESPN, the syndicated television series More Than a Game, additional boxing broadcasts on ESPN, television production for the Boston Marathon and increased revenues from NCAA foreign rights distribution. This is an extremely well balanced set of new relationships and new ventures for the company. We are especially pleased to have accomplished this explosive revenue growth while executing our program of tight cost controls. Our gross margins improved from 23.7% last year to 29.0% in this year's first quarter. We also held the line on general and administrative expenses having tripled our pro forma revenues on only a 27% increase in G&A expenses. It is also worth noting that our operations include a charge of $0.3 million in non-cash compensation for the probable release of certain escrow shares due to the accelerated financial performance of QBQ. Without this charge, the company would have reported net income of $0.3 million.

"As we continue our successful business development efforts into 1998, we look forward to integrating our recently announced acquisitions of Alphabet City and Park Associates. We expect to benefit greatly from their entrepreneurship and the powerful brand names and established relationships they have developed. We look forward to continuing our aggressive program to market our growing presence in the sports and entertainment arena.

"While we have previously disclosed that we have received an offer from SFX Entertainment and that the Board of Directors has formed an independent committee to evaluate the proposed transaction and to examine other possible strategic alternatives for the company, we are particularly proud that we have posted these results. We are focused on operating the business as usual and look forward to continuing the kind of growth we have just reported into the quarters to come."

Marquee provides integrated event management, television production, marketing, talent representation and consulting services in the sports, news and other entertainment industries. The company provides production and promotion services to major sporting events, sports television shows and professional and collegiate leagues and organizations. In conjunction with these services, it also offers consulting services for the development and implementation of corporate sponsorship campaigns which are designed to promote an event, team or sponsor. Marquee also represents sports and media personalities and has a roster of clients including athletes, broadcasters and media executives. The services provided include negotiating employment agreements and creating and evaluating various business opportunities for its sports, news and entertainment clients. In addition, Marquee is an established provider of television programming services in the field of international sports. The company also books tours and appearances for a variety of premier musicians and entertainers and through these activities, Marquee is able to take advantage of opportunities in the music business, such as corporate sponsorships and entitlements, which are already being capitalized on in the sports business. -0-

                THE MARQUEE GROUP, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (in thousands, except per share data)

                                 Three Month Ended

                              March 31,         Pro Forma
                           1998       1997         1997

Revenues                $11,468     $1,979      $ 3,772

Operating expenses        8,140      1,467        2,616
General and
 administrative
 expenses                 2,595      1,265        2,013
Deferred and other
 non-cash compensation      350         24           23
Depreciation and
 amortization               369          8          354
Income (loss) from
 operations                  14       (785)      (1,234)
Interest income net          70          7           13
Income (Loss) before
 income taxes                84       (778)      (1,221)
Income taxes                 68        ---          ---
Net income (loss)            16       (778)      (1,221)
Accretion of obligation
 related to the put option
 issued in connection with
 the ProServe acquisition    75        ---           75
Net loss applicable
  to common stockholders $  (59)    $ (778)      $(1,296)
Net loss per share
 applicable to common
  stockholders - basic
    and dilutive            ($-)    ($0.10)       ($0.08)

Weighted average common
 shares outstanding      16,560      7,494       16,560

CONTACT: Timothy J. Klahs

Director, Corporate Communications

The Sillerman Companies

212-407-9126