INTERTAINER AND ARTISAN ENTERTAINMENT ENTER INTO DIGITAL PRODUCTION AND DISTRIBUTION PACT

Agreement Calls For Co-Development, Production And Distribution Of Digital Entertainment

(New York, NY / Culver City, CA) - - Continuing to embrace digital feature film production and distribution, Intertainer and Artisan Entertainment announced today a ground breaking agreement to co-develop, produce and distribute five feature-length motion pictures to be shot and edited completely in the digital format. Intertainer will showcase the films on its entertainment on demand service and Artisan will retain domestic rights to the features.

The announcement was jointly made by Intertainer Chairman and Co-CEO Richard Baskin and Artisan President Amir Malin. The agreement allies two leading companies that have truly harnessed the realm of possibilities in new media.

The five digital features will each be produced with an average budget of $500,000 with Artisan tapping its vast distribution network and marketing expertise for those films its chooses to release theatrically. Intertainer will distribute each feature on-demand after theatrical and video release. The two companies are currently reviewing possible scripts and treatments to put into development under this new production and distribution agreement.

The deal taps into the heritage of Intertainer principals Baskin and President and Co-CEO, Jonathan Taplin. Baskin produced soundtracks for ground-breaking '70s films such as Robert Altman's Nashville and Alan Rudolph's Welcome To L.A. Taplin produced films in the independent vein from the '70s to the '90s including Mean Streets, The Last Waltz, Until The End of the World and To Die For.

"Intertainer and Artisan are an exhilarating combination because we both have a hand in defining the new age of entertainment," said Baskin. "Intertainer has a ground-breaking way of delivering entertainment and Artisan creates cutting-edge films marketed with groundbreaking new media tactics. With this deal we can take our service to the next level by making inroads with original content."

"With the Blair Witch Project, Artisan became known as a studio that broke new ground with the marketing of films on the Internet and we are now looking to establish a leadership position in developing and producing motion picture product in the digital form," said Malin. "Intertainer is a service that is on the forefront of digital distribution and we are extremely confident they will prove to be a great partner and resource on these films not only as a content delivery vehicle but also as a production partner."

Intertainer's broadband entertainment on demand service enables customers to instantly watch a wide variety of entertainment with the click of a mouse or remote. Intertainer subscribers get music, television programs, current movies and film favorites within seconds to their PC or TV. Customers can view their choices in full-screen, high-quality resolution with complete VCR-functionality, allowing them to stop, rewind and fast-forward selections.

Intertainer (www.intertainer.com) is a new way to get movies, music and television anytime you want on your PC or TV. The service features content from unprecedented partner relationships including Warner Brothers, DreamWorks SKG, Sony Music, ESPN, Twentieth Century Fox, Artisan Entertainment, Disney Channel and Columbia TriStar Television, among many others. Enhanced TV functionality, interactive advertising, e-commerce opportunities and personalization features round out the Intertainer experience. Strategic partners include Comcast, US West, Sony, Intel and NBC.

Artisan Entertainment Inc., is a diversified entertainment company that specializes in the development, production, acquisition, marketing and worldwide distribution of quality feature-length motion pictures. Artisan is backed by majority shareholders Audax Entertainment, an affiliate of the Audax Group, and Richland, Gordon & Co., along with a small, prominent group of equity investors, including Allen & Co. and the management team. The company has secured a major pay-TV deal with ShowtimeNetworks; an output deal with Hallmark Entertainment, which covers all Hallmark, Crayola and Cabin Fever product; a distribution deal with The Shooting Gallery for its film product in all media; the purchase of an equity stake in Summit Entertainment; and an output deal with Alliance in Canada. Artisan is comprised of four key groups: Artisan Pictures Inc., Artisan Home Entertainment Inc., Artisan Television and Artisan International.

Artisan Entertainment Inc. controls a library of more than 6,300 titles which include Terminator 2: Judgment Day, Reservoir Dogs, Dirty Dancing, Total Recall, The Piano and the successful Rambo series of films, as well as a library of widely recognized children's programming under its Family Home Entertainment brand. The company maintains offices in Los Angeles, New York and Dallas.