Avenue Entertainment Group Reports Second Quarter Operating Profit

Business Wire, August 15, 2002

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Aug. 15, 2002

Avenue Entertainment Group (OTCBB:PIXG) announced results for the quarter ended June 30, 2002. The company has reported a net income of approximately $144,000 or a basic profit per share of $.03 for the quarter ended June 30, 2002 and a net income of approximately $314,000 or a basic profit per share of $.06 for the six months ended June 30, 2002. Revenues of $495,000 for the quarter ended June 30, 2002 included producing fees for the feature film, "Mindhunters," fees earned from the Company's First Look Producing Agreement with HBO, and producing fees from the HBO film projects, "Angels in America," "Normal" and "Path to War."

Cary Brokaw, President and Chief Executive Officer, commented, "We are pleased with the continued growth of revenues and increase in profits. We believe the Company's ongoing development efforts and focus on properties and talent of the highest quality will continue to produce favorable results."

The Avenue Pictures' production "Path to War" premiered May 18th on HBO to exceptionally favorable reviews. "Path to War" is an original movie for HBO starring Michael Gambon, Alec Baldwin and Donald Sutherland which tells the story of the tragic escalation of the Vietnam War by the Johnson administration, and was directed by the late and legendary John Frankenheimer ("The Manchurian Candidate," "Ronin"). The film recently received eight Emmy Award nominations including Outstanding Made For Television Movie, Director, Actor and Screenplay.

The Company has also completed production on "Mindhunters" which was co-financed by Intermedia and Dimension Films. Dimension Films will release the film domestically and Intermedia will license the international rights. Written by Wayne Kramer and Erhen Kruger and directed by Renny Harlin ("Cliffhanger," "Deep Blue Sea"), "Mindhunters" is a story concerning a serial killer amidst the most elite unit of the FBI. The film stars Val Kilmer, Christian Slater, LL Cool J and Kathryn Morris.

Avenue Pictures also recently completed production on "Normal" for HBO Films, directed by Jane Anderson ("Baby Dance," "When Billy Beat Bobby") and starring Jessica Lange and Tom Wilkinson (Best Actor Nominee for "In the Bedroom.")

An unaudited summary of Avenue's revenues and results of operations for the first two quarters ended June 30, 2002 and 2001 is as follows:

                                  Six Months Ended  Six Months Ended
                                    June 30, 2002    June 30, 2001
                                    -------------    -------------

Revenues                             $1,010,908         $330,895
Income (loss) before income tax         314,888         (657,776)
Income tax expense                          460            1,650
Net income (loss)                      $314,428         (659,426)
Basin income (loss) per share               .06             (.13)

Safe Harbor statement under the Private Securities Reform Act of 1995: Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, products and prices, the inherent uncertainty of the film and television production business (in which success of a product depends upon unpredictable and changing factors such as competition and audience acceptance) and other factors discussed in the Company's various filings with the Securities and Exchange Commission.