Playboy sets agreement with Tohokushinsha for Playboy cable television network in Japan

Business Wire, August 1, 1995

LOS ANGELES--(BUSINESS WIRE)--August 1, 1995--Playboy Entertainment Group (PEG) has concluded an agreement with Tohokushinsha Film Corp. for a 24-hour cable television network called the Playboy Channel to launch in Japan on October 1, 1995.

The 24-hour premium subscription service will be available to Japanese cable subscribers and hotels with Tohokushinsha controlling an 80% stake in the venture and Playboy 20% -- the highest equity position a foreign company can take in a Japanese network.

Playboy has also entered into a long term output deal that will provide 700 hours of programming over the first five years of the venture. In addition Playboy will receive a brand royalty for the use of its logo and trademark.

The new service will become the second full time international Playboy television network to be created. The first, Playboy TV UK/Benelux, was announced in May and is launching as a joint venture between Playboy, Flextech and BSkyB.

Tohokushinsha currently operates two satellite delivered channels, which are distributed to Japanese cable households -- the Star Channel premium movie service, in which the UIP studios (Paramount, MCA/Universal and MGM) hold equity; and the Super Channel, a basic cable service.

Tohokushinsha will shortly launch another programming service based on Japanese TV dramas, theatrical films and children's animated and live-action programs. With the addition of Playboy and this new service to the existing Star channel and Super channel, Tohokushinsha will become the most influential program supplier to the cable market in Japan.

According to Tony Lynn, president of PEG, "a Playboy-branded network in Japan has been a high priority in our continued expansion of international networks and we are pleased to have such a respected partner to help us enter this challenging and exciting market."

Tetsu Uemura, managing director for the entertainment division at Tohokushinsha Group stated, "It is a well-known fact that the Playboy television network has played an important role in expanding the cable market in the U.S. and it is without doubt that the arrival of the Playboy Channel will contribute to the rapid growth of its Japanese counterpart. Needless to say, we are most excited to partner with Playboy, one of the world's most prestigious companies."

Among the programming that Playboy will provide to the Playboy Channel will be a wide variety of original Playboy-produced feature films, series and specials as well as exclusively licensed motion pictures.

Tohokushinsha Group consists of numerous companies servicing every need of the visual entertainment and advertising industries, including the largest TV commercial production house in Japan, an industry-leading digital post-production and computer graphics unit and a consumer-retailing business. Its entertainment division is engaged in distribution of foreign and domestic programs to theatrical, home video and TV markets, programming services for cable TV market, merchandising/licensing, production of theatrical films and TV programs, and distribution and development of interactive software. Tohokushinsha also established "Visual-Techno Academy," a school formed to hand down the experiences, knowledge and technology accumulated in its 35-year history to the next generation of industry newcomers.

Playboy Entertainment Group is a wholly-owned subsidiary of Playboy Enterprises, Inc., the international publishing and entertainment company that publishes Playboy magazine and related media. The Entertainment Group develops, produces and distributes programming for Playboy Television, the U.S. pay television channel, and international television and worldwide home video markets. Playboy TV is the third largest pay-per-view service in the U.S. and its programming is broadcast in 100 territories worldwide.

CONTACT: Playboy Enterprises, Inc.

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Martha Lindeman, 312/751-8000, x2650

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Jim Nagle, 310/246-4000, x4120