Unapix Entertainment Reports Record Second Quarter Financial Results -- Revenues Rise 40%.

NEW YORK--(BUSINESS WIRE)--Aug. 15, 1997--

Company Creates Second Profit Center As it Emerges Into Full-Scale Television Production

Unapix Entertainment Inc. (AMEX: UPX) today announced financial results for its second quarter ended June 30, 1997.

Second quarter sales climbed more than 40% to a record $7.5 million from the $5.4 million reported in the same period a year earlier, making this period Unapix's fourth consecutive record revenue quarter. Net income for the quarter was $255,000 or $.04 per share vs. $18,000 or $.00 per share a year earlier. The three months ended June 30, 1997 was the Company's 11th consecutive profitable quarter. The results for the quarter as well as the six months ended June 30, 1997 reflected continued growth of all of the operating units of the company. The quarter included approximately $160,000 of charges associated with the integration of newly acquired Miramar into Unapix's entertainment division of which $140,000 were startup costs. Interest expense rose more than $400,000 in the first half of the year, reflecting the investment the Company has made in productions which should benefit future periods.

Earnings before taxes, interest, depreciation and amortization for the three months ended June 30, 1997 totalled $5.0 million vs. $2.3 million in the same period a year earlier. For the six months ended June 30, 1997 EBITDA totalled $7.9 million vs. $4.5 million a year earlier.

Commenting on the financial results, David Fox, Unapix's President and CEO, said, "The Company continued to gain sales momentum in the second quarter, which we expect will increase even further in the third and fourth quarters. While we are gratified that this was our fourth consecutive record revenue quarter, we expect even greater top as well as bottom line results for the balance of the year as product backlog is delivered and as Miramar ramps up and achieves its full potential.

"We have emerged from the first half of 1997 with all of the benefits of a full scale television production company without most of the overhead. Confirmation of our television production strength was in the more than 60 hours of television production in the pipeline that will come through the television screen in the third and fourth quarters of 1997, including ESPU (Endangered Species Protection Unit) on Discovery's Animal Planet Network, Great Minds on TBS and Ushuaia on CNBC. This is the first moment of the creation of a second profit center on a global basis for Unapix. This is an exciting time for the Company."

Unapix Entertainment is one of the fastest-growing independent non-studio companies, whose expanding library of niche-programming and related operations are focused on the increasing worldwide demand for specialty-entertainment products created by new technologies and segmented consumer markets.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995; Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, products and prices, and other factors discussed in the Company's various filings with the Securities and Exchange Commission. -0-

                       UNAPIX ENTERTAINMENT  INC.
                          FINANCIAL HIGHLIGHTS

                                 For the Three months ended June 30
                                      1997                1996


Revenue                            $7,535,000          $ 5,353,000

Income before tax provision           452,000               30,000

Provision for income taxes            197,000               12,000

Net income                            255,000               18,000

Earnings per common share          $      .04          $         -

Average number of common shares
   outstanding                      5,903,000            5,227,000
-0-

                                 For the Six Months ended June 30
                                   1997                     1996

Revenue                            $ 13,972,000        $ 10,585,000

Income before tax provision             853,000             421,000

Provision for income taxes              362,000             174,000

Net income                              491,000             247,000

Earnings per common share           $       .08        $        .03

Average number of common shares
  outstanding                         5,646,000           5,224,000
-0-

CONTACT: David S. Lawi

Unapix Entertainment, Inc.

[phone]

or

Stan Altschuler/Richard E. Cooper

Strategic Growth International, Inc.

[phone]