Penthouse Magazine, New Frontier Media Announce $10 million deal to Launch Penthouse TV

Penthouse Magazine, New Frontier Media Announce $10 million deal to Launch Penthouse TV

BOULDER, Colo. and BOCA RATON, Fla., Sept. 18 /PRNewswire-FirstCall/ -- New Frontier Media, Inc. (NASDAQ:NOOF) , a worldwide producer and distributor of general and adult-themed motion picture entertainment, today announced an exclusive, long-term, multimillion dollar contract with Penthouse Media Group Inc., parent of one of the world's leading men's lifestyle publications, Penthouse Magazine, to deliver Penthouse-branded adult television content in the United States. Under terms of the deal, New Frontier Media will develop and launch a Penthouse-branded linear TV channel as well as a Penthouse Video On Demand service to U.S. cable, satellite and IPTV operators.

"Penthouse TV will offer adult consumers a fresh alternative in branded adult television," said Michael Weiner, CEO of New Frontier Media. "Adding the Penthouse brand to New Frontier's programming and distribution expertise will create one of the most formidable services ever offered to U.S. multichannel distributors."

New Frontier Media expects that Penthouse-branded VOD products will be available on U.S. television within the next six months, while the Penthouse linear channel will launch within 24 months. New Frontier Media is planning to make Penthouse TV available to 50 million U.S. households within three years. New Frontier Media plans to distribute Penthouse TV as an additional TV channel or as a replacement for existing New Frontier Media channels.

"We're pleased to partner with New Frontier Media and their powerful distribution platform in creating a TV channel anchored by Penthouse, one of the most renowned adult brands in the global market," said Marc Bell, CEO of Penthouse Media Group. "With the success of Penthouse TV's distribution, Penthouse will earn at least $10 million in TV revenue with more upside possible upon the success of the new services, and from an image perspective, we're leveraging one of the most prominent adult titles in the world."

Penthouse TV will showcase the most popular features of the Penthouse brand, including Penthouse Forum, Penthouse Pets, VIP Club access, interviews with Penthouse celebs as well as originally produced programming, full length movies, product reviews, sizzling stories and amateur video submissions.

"New Frontier Media has conducted extensive research on the Penthouse trademark and finds that on the attributes that matter most to adult consumers, Penthouse is the clear leader," said Ken Boenish, president of New Frontier Media, Inc. and TEN. "Penthouse awareness numbers make it truly a household name."

David Kravis, President of Coastline Licensing, acted as agent for Penthouse in the negotiation of this landmark deal.

Attention Press: A demo reel of Penthouse TV can be viewed at www.penthouseTV. com.

About New Frontier Media, Inc.

New Frontier Media, Inc. is a worldwide producer and distributor of adult-themed and general motion picture entertainment. Under the "The Erotic Networks" (R) trademark, the Company delivers seven, full-time adult-themed pay-per-view networks to cable and satellite TV operators across the United States. Additionally, the Company is a leading provider of adult-themed Video-on-Demand content to cable and satellite TV platforms. These services reach over 139 million network TV homes.

New Frontier Media's MRG Entertainment unit produces original, adult-themed content and series that are distributed on premium movie channels in the United States and around the world. MRG Entertainment also develops and produces original, adult-themed event programming that is widely distributed on cable and satellite TV platforms in the United States. Additionally, MRG Entertainment manages a sales operation, which matches independent, mainstream film producers with film distributors around the world.

New Frontier Media owns and operates a digital broadcast infrastructure in Colorado, which serves content to broadcast, IP and wireless networks around the world. Visit www.noof.com.

About Penthouse Media Group Inc.

Penthouse Media Group Inc. is an international, multimedia entertainment company. Founded in 1965 by Bob Guccione, Penthouse is globally recognized as one of the premier brands in adult entertainment and publishes one of the most widely circulated groups of men's lifestyles publications. The company also operates a popular adult entertainment website and provides adult video entertainment and a broad array of products and services via its numerous licensees. Visit www.pmgi. com.

Disclaimer

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates, expects, intends, plans, believes, seeks, estimates," or variations of such words are intended to identify such forward-looking statements. All statements in this release and the future outlook related to New Frontier Media and the outcome of any contingencies are forward-looking statements. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. All forward-looking statements made in this press release are made as of the date hereof, and the company assumes no obligation to update the forward-looking statements included in this news release whether as a result of new information, future events, or otherwise. Please refer to the Company's most recent Form 10-K and other filings with the SEC for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov.

First Call Analyst:
FCMN Contact:

Source: New Frontier Media, Inc.

CONTACT: Marc Lumpkin of New Frontier Media, +1-303-378-2366,
marc@altitudepr.com; or Kathleen Berzon of Penthouse Media Group Inc.,
+1-561-912-7034, kberzon@pmgi.com

Web site: http://www.noof.com/

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Profile: International Entertainment