Avenue Entertainment Group Reports First Quarter Operating Profit

Business Wire, June 12, 2002

Business/Entertainment Editors

LOS ANGELES--(BUSINESS WIRE)--June 12, 2002

Avenue Entertainment Group (OTCBB:PIXG) announced results for the quarter ended March 31, 2002. The company has reported a net income of approximately $170,000 or a basic profit per share of $.03 for the quarter ended March 31, 2002. Revenues of $516,000 for the quarter ended March 31, 2002 included producing fees for the feature film, "Mindhunters," fees earned from HBO for the First Look Producing Deal, and producing fees from the HBO projects, "Angels in America" and "Path to War."

Cary Brokaw, President and Chief Operating Officer, commented, "The Company's focus on the development of unique high quality entertainment properties has now begun to produce exciting results. With the ongoing benefits of an outstanding relationship with HBO Films, in addition to our feature film activity, we believe we can sustain this success."

"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 is directed by the acclaimed John Frankenheimer ("The Manchurian Candidate," "Ronin").

Avenue 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, the story concerns a serial killer amidst the most elite unit of the FBI. Directed by Renny Harlin ("Cliffhanger," "Deep Blue Sea"), "Mindhunters" stars Val Kilmer, Christian Slater, LL Cool J and Kathryn Morris.

An unaudited summary of Avenue's revenues and results of operations for the first quarters ended March 31, 2002 and 2001 is as follows:

                                       Quarter Ended   Quarter Ended
                                       March 31, 2002  March 31, 2001

Revenues                               $  516,245       $  72,097
Income (loss) before income tax           170,849        (439,942)
Income tax expense                            460              50
Net income (loss)                      $  170,389        (439,992)
Basic income (loss) per share                 .03            (.09)

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.