Avenue Entertainment Group Reports Third Quarter Operating Loss

Business Wire, Nov 18, 2002

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Nov. 18, 2002

Avenue Entertainment Group (OTCBB:PIXG) announced results for the quarter ended September 30, 2002. The company has reported a net loss of approximately $36,000 or a basic loss per share of (.01) for the quarter ended September 30, 2002 and a net income of approximately $278,000 or a basic profit per share of $.05 for the nine months ended September 30, 2002. Revenues of $310,000 for the quarter ended September 30, 2002 included producing fees for the 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, "While the timing of certain production fees reduced this quarter's revenues, the Company is very pleased with the level of current and prospective production activity."

Avenue Pictures is currently in production on ANGELS IN AMERICA, based on Tony Kushner's Pulitzer Prize-winning plays, which is HBO's epic six hour film event directed by Mike Nichols, produced by Brokaw, and starring Al Pacino, Meryl Streep, Emma Thompson, Jeffrey Wright and Mary Louise Parker, Justin Kirk, Patrick Wilson and Ben Shenkman.

Avenue is in post-production on MINDHUNTERS, which is co-financed by Dimension Films and Intermedia Films and co-produced by Outlaw Films. The thriller, directed by Renny Harlin, concerns a serial killer amidst the most elite unit of the FBI. MINDHUNTERS starts LL Cool J, Val Kilmer, Christian Slater and Kathryn Morris. Dimension Films plans an April release date.

Avenue is also in post-production on NORMAL for HBO films which is written and directed by Jane Anderson and executive produced by Brokaw. NORMAL stars Jessica Lange and Tom Wilkinson. The film will premiere in March on HBO.

Avenue and Brokaw previously produced PATH TO WAR for HBO which was directed by the late John Frankenheimer and starred Michael Gambon, Alec Baldwin and Donald Sutherland. The film premiered in May and received eight Emmy nominations including Outstanding Made for Television Movie.

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

                                Nine Months Ended  Nine Months Ended
                                 Sept. 30, 2002     Sept. 30, 2001

Revenues                            $1,320,802        $617,533
Income (loss) before income tax        278,397        (820,725)
Income tax expense                         460           1,950
Net income (loss)                     $277,937        (822,675)
Basic income (loss) per share              .05            (.15)

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.