Kaleidoscope Media Group Completes Private Placement

Business Wire, Feb 19, 1998

NEW YORK--(BUSINESS WIRE)--Feb. 19, 1998--Kaleidoscope Media Group Inc. (OTC BB:KMGG,Berlin and Frankfurt stock exchanges:BNN) announced Thursday that it has raised approximately $2 million in equity through a sale of common stock to a group of Swiss financial institutions.

These shares are "Restricted shares" and the company has obtained an investment representation letter from each of the investors. These shares were sold at a 15% discount from the bid price at the time the placement agreement was entered into.

Additionally the company sold one million shares pursuant to several Regulation S transactions. The investors have represented that these shares will not be sold for a period of between six months and one year except on the Berlin and Frankfurt stock exchanges.

The company is not actively pursuing any additional equity investments at this time.

Kaleidoscope Media Group Inc. (OTC BB:KMGG,Frankfurt and Berlin Exchanges:BNN) is a vertically integrated sports and entertainment marketing company with offices in New York, Los Angeles, and Miami. Kaleidoscope Media Group's operating companies are Seagull Entertainment, Hollywood Connection LLC (direct marketing), Kaleidoscope Consulting and Kaleidoscope Sports. Current KMG sports properties include tennis, boxing, and fitness. KMG produces internationally recognized television programs including "Tarzan" (series), "Team Xtreme" (series), and "Merlin: The Magic Begins."

CONTACT: Henry Siegel, CEO

212/779-6600