Skyline Multimedia Entertainment Announces It is Unaware of Reasons for Unusual Market Activity

Business Wire, July 10, 1998

NEW YORK--(BUSINESS WIRE)--July 10, 1998--Skyline Multimedia Entertainment, Inc. (NASDAQ: SKYL) announced that it is unaware of the reasons for the unusual activity in the price and volume of its common stock experienced on July 9, 1998.

The Company is currently investigating the possible cause of the recent surge in its common stock price. As previously disclosed, the Company continually explores strategic opportunities in the normal course of its business, however, the Company does not believe that any discussions with respect to potential relationships are mature enough to warrant public disclosure at this time and is unaware of any rumors in the marketplace. The Company has undergone recent significant management changes, but does not believe that such changes are the cause of the recent market activity. The Company will keep the public informed of all relevant information as it becomes available.

Headquartered in New York City, Skyline Multimedia Entertainment, Inc. is a holding company engaged in the development and operation of state-of-the-art entertainment attractions. The Company owns and operates New York Skyride, the first flight simulator attraction in the New York metropolitan area. The New York Skyride is located in the Empire State Building, New York's number one tourist attraction. The Company also owns and operates XS New York, New York City's first and only Virtual Reality Entertainment Center, located in the heart of Times Square.

    CONTACT:  Skyline Multimedia Entertainment, Inc.
               Steven Schwartz, 212/564-2224