INTERTAINER AND AFI FORM ALLIANCE TO DISTRIBUTE LIBRARY OF INDEPENDENT SHORT FILMS FOR ON-DEMAND DISTRIBUTION AND TO LAUNCH NEW WEB SITE

(Los Angeles, CA and Culver City, CA.) - Intertainer, Inc., the entertainment on demand broadband network, and the American Film Institute (AFI) announced today a strategic alliance that provides Intertainer with the exclusive rights to AFI's independent short films, adding to Intertainer's commitment to provide its on-demand customers with the best and most diverse sources of programming.

In addition to earning the exclusive rights to AFI's programming library, this multi-faceted alliance also calls for the companies to create a new AFI-branded Web site for independent film artists. The new site, located at www.AFIfilm.com, will feature works produced at The AFI Conservatory and Directing Workshop for Women, as well as shorts from around the world.

As part of the agreement, Intertainer will receive the rights distribute AFI's remarkable collection of award-winning titles from AFI on their service, including this year's Academy Award winner for Best Short Live Action Film, MY MOTHER DREAMS THE SATAN'S DISCIPLES IN NEW YORK, directed by Barbara Schock and produced by Tammy Tiehel; VIOLET (1981), directed by Shelly Levinson; and IN THE REGION OF ICE (1976), produced by Andre Guttfreund and directed by Peter Werner. AFI's many distinguished alumni include Jon Avnet, David Lynch, Carl Franklin, Randa Haines, Amy Heckerling, Janusz Kaminski, Mimi Leder, Terrence Malick, John McTiernan and Edward Zwick.

"AFI has produced outstanding independent works throughout the years, and earning the rights to showcase them on the Intertainer service is an incredible opportunity," said Jonathan Taplin. "This agreement is particularly special because together we will tap into new terrain by bringing original, digital content to our broadband network. We are confident that through this collaboration with AFI, thousands of independent filmmakers craving the complete digital experience will be satisfied."

"AFI is thrilled to be working with Intertainer to build a digital exhibition for the work of AFI filmmakers, and to build a global audience for a new generation of digital media artists going forward," said Jean Picker Firstenberg, AFI Director and CEO. "This new site will provide a kind of portfolio for the filmmaker and exposure within the profession, as well as to the general film-going audience around the world. Intertainer's new broadband service will also allow AFI to interact directly with audiences who want fresh, original programming from the world's most exciting and promising filmmakers."

www.AFIfilm.com will be designed to encourage interaction among established and aspiring filmmakers and their audiences. AFI and Intertainer will produce original material about each film, filmmaker and the filmmaking process that will be embedded into the programming in an enhanced television style. In addition, short movies by other aspiring artists from around the world will be distributed on the site as well.

Earlier this year, Intertainer clearly demonstrated its dedication to the independent filmmaking industry when the company entered into a strategic alliance with Artisan Entertainment to co-develop, produce and distribute five feature-length motion pictures to be shot and edited completely in the digital format. Intertainer plans to showcase the films on its entertainment on demand service and Artisan will retain domestic rights to the features.

AFI's unique library of independent films greatly complements Intertainer's existing programming, which includes more than 50,000 hours of content from over 60 media companies, including Buena Vista (Disney), Columbia TriStar Television, Disney Channel, DreamWorks SKG, ESPN, Miramax, NBC, New Line Cinema, Pearson Television, Sony Music, Twentieth Century Fox, Warner Bros., among others.

This deal taps into the heritage of Intertainer principals Chairman, Richard Baskin and President and CEO, Jonathan Taplin. Baskin produced soundtracks for groundbreaking '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 (www.intertainer.com) delivers the largest selection of movies, music videos, television and shopping on-demand to your PC or TV. The service features content from unprecedented partner relationships including Columbia TriStar Television, Disney Channel, Dreamworks SKG, ESPN, Sony Music, Twentieth Century Fox, and Warner Bros., among many others. Enhanced TV functionality, interactive advertising, e-commerce opportunities and personalization features round out the Intertainer experience. Strategic partners include Comcast, Intel, Microsoft, NBC, Sony and US West.

AFI is the preeminent national organization dedicated to advancing and preserving the art of film and television and other forms of the moving image. AFI's programs promote innovation and excellence through teaching, presenting, preserving and redefining the moving image. More information about the AFI can be found by visiting its award-winning website located at www.AFIonline.org.