Playboy Contact:               
                                 Martha Lindeman    312-440-5493
                                                                
                                 Spice Contact:                 
                                 Gregory Miller     212-941-1434
                                                    917-635-7335
                                 Tina Clarke        212-941-1434


                    PLAYBOY ENTERPRISES AGREES TO ACQUIRE 
                      SPICE ENTERTAINMENT COMPANIES, INC.

     CHICAGO, Wednesday, February 4, 1998 -- Playboy Enterprises, Inc. (PEI) and
Spice Entertainment Companies, Inc. (Spice) today announced that they entered
into an agreement whereby PEI will acquire all of the outstanding shares of
Spice (SPZE-NASDAQ) for cash and Playboy stock. The total transaction value,
including the assumption of debt, is expected to be approximately $95 million.
For each share of Spice, stockholders will receive the sum of:

     . $3.60 in cash; and

     . 0.1524 shares of PEI Class B Stock (PLA - NYSE), subject to a collar 
designed to provide a minimum value of $2.11 or a maximum value of $2.69 per 
Spice share.

     Under the terms of the agreement, Spice's stockholders will retain
ownership of Spice's digital operations center for video and Internet
broadcasts, its option to acquire the outstanding stock of Emerald Media, Inc.,
a leading provider of adult entertainment in the C-Band market, and certain
rights to a library of adult films.

     PEI's Playboy TV and AdulTVision networks, which reached a total of 17.9
million U.S. cable and direct-to-home households as of September 30, 1997,
reported revenues of $52.1 million for the 12 months ended September 30. Spice's
domestic networks, Spice and Adam & Eve, reached 21.5 million households and had
revenues of $22.0 million for the same time periods.

     PEI Chairman and Chief Executive Officer Christie Hefner said: "We believe 
that this acquisition is an excellent strategic fit because the benefits of 
integrating the two companies will significantly enhance Playboy's fast-growing 
and high-margin television business, here and abroad. Excluding one-time 
expenses associated with the deal, we expect the acquisition to be accretive in 
the first year."

     "In addition to our stockholders, the acquisition will benefit our
customers, as we will be able to increase our commitment to quality programming
for adults, and we expect this acquisition to strengthen our relationship with
our cable and direct-to-home distributors," Hefner added.

     J. Roger Faherty, chairman and chief executive officer of Spice, said: "We
are very pleased with the opportunity that this agreement provides our
shareholders to receive fair value from the restructuring of our company's
operations in 1996 and to participate in Playboy Enterprises' growth as the
world's leading brand of entertainment aimed at adult audiences."





 
     The agreement is subject to due diligence review, definitive documentation,
working capital and tax adjustments, Spice shareholder approval, receipt of a 
fairness opinion by Spice and other customary closing conditions. There is no 
assurance that any definitive agreement regarding the sale of Spice will be 
reached or that the transaction will be completed. 

     Playboy and Spice intend to promptly begin preparation of definitive 
documentation and obtain the approval of Spice's shareholders. Closing of the 
transaction is expected to occur during the second calendar quarter. 

                                     ****

     Playboy Enterprises, Inc. is an international media and entertainment
company that publishes Playboy magazine in the United States and licenses
editions internationally, develops and markets other branded media products,
including newsstand specials, calendars, books, CD-ROMs and Internet sites;
creates and distributes programming for domestic pay television, worldwide home
video and international television; markets the Playboy trademarks on apparel,
accessories and products sold around the world; operates a direct marketing
business, including the Critics' Choice Video, Collectors' Choice Music and
Playboy catalogs; and will open the Playboy Casino & Beach Hotel on the Greek
island of Rhodes.

     Spice Entertainment Companies is a leading provider of adult television 
entertainment throughout the world.

                                      ###