New Frontier Media Announces Expansion of Linear Pay-Per-View Channels in Europe

BOULDER, Colo., Aug. 3 /PRNewswire-FirstCall/ -- New Frontier Media, Inc. (Nasdaq: NOOF), a leading provider of transactional television services and a distributor of independent general motion picture entertainment, today announced that it has executed a five-year license agreement to rebrand and distribute three new international linear pay-per-view ("PPV") channels.  The satellite footprint for the channels covers all of Europe, the Middle East, and areas of Northern Africa.  The new channels will primarily target cable, IPTV, digital terrestrial and satellite platforms in Europe.

"We are pleased to announce the expansion of New Frontier Media's product offerings to include new PPV channels that are expected to reach over 49 million unique households, primarily in Europe," said Michael Weiner, chief executive officer of New Frontier Media, Inc. "We have quickly expanded our Transactional TV segment's video-on-demand ("VOD") distribution in this market. Due to the strong performance of VOD, operators have expressed an interest in an expanded New Frontier Media product offering which includes linear channels that can be sold on a subscription and PPV basis.  The newly executed strategic licensing agreement allows us to fulfill customer demands for a broader product offering and should allow us to further grow our international distribution revenue with very little incremental expense.  This new license agreement provides another example of the Company's ability to effectively execute against its strategic objectives by leveraging existing infrastructure and relationships to create new revenue streams."  

"The first of the new European channels, XTSY, is expected to launch in the third quarter of fiscal year 2011," continued Mr. Weiner.  "We are optimistic that the new PPV channels will allow us to materially increase our international subscriber base during the current fiscal year.  We believe this agreement represents a key milestone towards the achievement of this objective."

Cautionary Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. These forward-looking statements are covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes'', "seeks", "estimates", or variations of such words are intended to identify such forward-looking statements.  The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements.  For example, our stated expectation regarding the new PPV channels allowing us to materially increase our international subscriber base during the current fiscal year, as well as our statement indicating our expectation that the new agreement should allow us to further grow our international distribution revenue with very little incremental expense, are forward looking statements. All forward-looking statements made in this press release are made as of the date hereof, and the Company assumes no obligation to update the forward-looking statements included in this news release whether as a result of new information, future events, or otherwise. Please refer to the Company's most recent Form 10-K and other filings with the Securities and Exchange Commission ("SEC") for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports.  Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval (EDGAR) system at www.sec.gov.

About New Frontier Media, Inc.

New Frontier Media, Inc. is a leading producer and distributor of branded television networks and on-demand programming. The Company delivers nine full-time transactional adult-themed pay-per-view ("PPV") channels, along with video-on-demand ("VOD") services, to cable and satellite operators world-wide. Distribution of the Company's programming originates at New Frontier Media's state-of-the-art digital broadcast center in Boulder, Colorado. The Company owns thousands of hours of digital content and partners with movie studios to deliver a variety of transactional adult entertainment to its customers.

New Frontier Media's Film Production segment produces original mainstream motion pictures that are distributed in the U.S. on premium movie channels, such as Cinemax® and Showtime®, and internationally on similar services. The Film Production segment also develops and produces original event programming that is widely distributed via satellite and cable pay-per-view providers. This segment also represents the work of a full range of independent film producers in markets around the world.

The Company is headquartered in Boulder, Colorado, and its common stock is listed on the Nasdaq Global Select Market under the symbol "NOOF." For more information about New Frontier Media, Inc. contact Grant Williams, Chief Financial Officer, at (303) 444-0900, extension 2185, and please visit our web site at www.noof.com.

SOURCE New Frontier Media, Inc.