EXHIBIT 99
CROWN MEDIA SIGNS NEW AGREEMENT WITH DIRECTV, INC. INCREASING HALLMARK CHANNEL
U.S. DISTRIBUTION TO 40 MILLION SUBSCRIBERS
GREENWOOD VILLAGE, Colo. & EL SEGUNDO, Calif.--Aug. 21, 2001--Crown Media
Holdings, Inc. ("Crown Media" or the "Company") and DIRECTV, Inc. today
announced that they have entered into a strategic relationship under which the
Hallmark Channel U.S. will be repositioned to DIRECTV's TOTAL CHOICE(R) Package.
With this repositioning, the total distribution of the Hallmark Channel in the
United States will be expanded to approximately 40 million subscribers by the
end of September, 2001. In addition to this agreement for expanded distribution,
the two companies will explore the distribution of additional programming
services, new interactive broadband applications and pay-per-view distribution
of programs from the film assets to be acquired by Crown Media and additional
programs of Hallmark Entertainment. As part of this relationship, DIRECTV will
receive approximately 5.4 million shares of Crown Media Class A Common Stock,
representing 4.7% of the fully diluted equity of Crown Media after closing of
the pending films transaction with Hallmark Entertainment Distribution. Margaret
Loesch, President and CEO of Crown Media United States, LLC, commented, "This
agreement provides the Hallmark Channel U.S. with an increased level of coverage
across the country, expanding our distribution to approximately 40 million
subscribers. With the additional exposure to viewers, we hope to further
increase the ratings for our valued programming. And the combination of
increased distribution and increased ratings should help us attract an even
greater number of the leading advertisers to the channel."
As part of the collaboration between DIRECTV and Crown Media, DIRECTV will work
with Crown Media and Hallmark Entertainment, Inc., to explore the feasibility of
the pay-per-view distribution of longform titles, as well as the development of
new interactive applications, including an application known as "V Greetings."
Discussions will also be held with Binney & Smith to explore possible
opportunities involving the Crayola brand. Binney & Smith is owned by Hallmark
Cards, Inc. "We have stated on numerous occasions that the success of our
business is dependent on our efforts in three strategic areas - brand, content
and distribution," stated David Evans, President and CEO of Crown Media
Holdings. "On the brand and content front, we've successfully completed the
global rebranding of the Hallmark Channel and are in the process of finalizing
the acquisition of over 700 titles from the award-winning Hallmark Entertainment
library. Now with this agreement, we are able to advance our goals on the
distribution front, putting the Hallmark Channel U.S. on par with some of the
most recognized networks on television today. With a recognized brand name,
high-quality programming and a growing audience, we are poised to become a
leader in the television programming industry and are pleased to add DIRECTV to
the impressive list of strategic partners with whom Crown Media is fortunate to
be allied."
"DIRECTV customers will benefit from the added value and enhancements that the
Hallmark Channel delivers to its network," said Roxanne Austin, President and
Chief Operating Officer, DIRECTV, Inc. "Our customers have come to expect
compelling programming that enhances their viewing experience. We look forward
to expanding our relationship with a respected leader in the programming
community that provides innovative, quality entertainment to our customers."
Crown Media has filed a Current Report on Form 8-K with the SEC containing
additional information regarding this transaction.
About DIRECTV Inc.
DIRECTV is the nation's leading digital satellite television service provider
with more than 10 million customers. DIRECTV and the Cyclone Design logo are
registered trademarks of DIRECTV, Inc., a unit of Hughes Electronics
Corporation. HUGHES is the world's leading provider of digital television
entertainment, and satellite and wireless systems and services. The earnings of
HUGHES, a unit of General Motors Corporation, are used to calculate the earnings
per share attributable to the General Motors Class H common stock. Visit DIRECTV
on the World Wide Web at DIRECTV.com.
About Crown Media Holdings, Inc.
Crown Media Holdings, Inc. owns and operates pay television channels dedicated
to high quality, broad appeal, entertainment programming. The company currently
operates and distributes the Hallmark Channel in the U.S. and the Hallmark
Channel in more
than 100 international markets. The combined channels have more than 73 million
subscribers worldwide. Significant investors in Crown Media Holdings include
Hallmark Entertainment, Inc., a subsidiary of Hallmark Cards, Inc., Liberty
Media Corp., DIRECTV, Inc., VISN Management Corp., a for-profit subsidiary of
the National Interfaith Cable Coalition, and J.P. Morgan Partners (BHCA), L.P.
Forward-looking Statements
Statements contained in this press release may contain forward-looking
statements as contemplated by the 1995 Private Securities Litigation Reform Act
that are based on management's current expectations, estimates and projections.
Words such as "expects," "anticipates," "intends," "plans," "believes,"
"estimates," variations of such words and similar expressions are intended to
identify such forward-looking statements. Forward-looking statements are subject
to risks and uncertainties, which could cause actual results to differ
materially from those projected or implied in the forward-looking statements.
Such risks and uncertainties include: competition for distribution of channels,
viewers, advertisers, and the acquisition of programming; fluctuations in the
availability of programming; fluctuations in demand for the programming Crown
Media airs on its channels; and other risks detailed in the Company's filings
with the Securities and Exchange Commission, including the Risk Factors stated
in the Company's 10-K Report for the year ended December 31, 2000 and 10-Q
Report for the quarter ended June 30, 2001. Crown Media Holdings is not
undertaking any obligation to release publicly any updates to any forward
looking statements to reflect events or circumstances after the date of this
release or to reflect the occurrence of unanticipated events.
Contact Information:
For Crown Media
Investor Relations:
Lippert/Heilshorn & Associates
Mary Ellen Adipietro, 212/838-3777, madipietro@lhai.com
Karen Pisciotta, 212/838-3777, kpisciotta@lhai.com
or
Media:
The Lippin Group/LA
Les Eisner, 323/965-1990, leisner@lippingroup.com
The Lippin Group/NY
Don Ciaramella, 212/986-7080, don@lippingroup.com
or
Lippert/Heilshorn & Associates
Elissa Grabowski, 212/838-3777, egrabowski@lhai.com
or
The Hallmark Channel
Mark Kern, 818/755-2626, MarkKern@hallmarkchannel.com
or
DIRECTV, Inc.
Gina Magee, 310/726-4654
MARGARET LOESCH TO LEAVE POSITION AS PRESIDENT AND CEO, CROWN MEDIA UNITED
STATES; LANA CORBI TO ASSUME POST
STUDIO CITY, Calif.--Sept. 25, 2001--Margaret Loesch, founding President and
Chief Executive Officer of Crown Media United States, LLC, the operator of its
U.S. Hallmark Channel, will be departing the company next month at the
conclusion of her contract, it was announced jointly by David J. Evans,
President and Chief Executive Officer of parent company, Crown Media Holdings,
Inc. CRWN and Ms. Loesch.
Mr. Evans further disclosed that Lana E. Corbi, currently Chief Operating
Officer of Crown Media Holdings and a prominent television executive, would
become the new President and Chief Executive Officer of Crown Media United
States, LLC.
"Margaret has made significant contributions to the Hallmark Channel resulting
in a very successful network. As a result of these contributions, the channel
enjoys a solid foundation and strong prospects for continued future growth. I
know Margaret will do well in whatever she decides for the future," Mr. Evans
stated.
He added, "I have enjoyed a long and productive professional relationship with
Lana and have every confidence based on her wealth of experience and skills that
she will effectively lead Hallmark Channel in the years ahead."
Ms. Loesch noted, "It has been a remarkable and rewarding experience to have
been a part of building our U.S. Hallmark Channel. What we believed in and
started in 1998 remains even truer today -- there's a yearning by viewers for
high quality, family-friendly, adult-targeted entertainment. We have created a
network that fills that need and the public, advertisers, system operators and
satellite providers are supporting us."
She added, "I'm very proud of the many accomplishments made by the team that
I've helped build. But, while the experience has been exciting, it has also been
all-consuming personally and professionally. As I near the end of my contract,
it seems like an ideal time to take a much-needed break and put some focus on my
family, and then begin to pursue my other career goals."
Prior to assuming her current post, Ms. Loesch had been president and chief
executive officer of Odyssey Holdings since November 1998. Recently, she oversaw
the successful August 5th re-branding of Hallmark Channel from Odyssey Network
and helped to build a significant growth of ratings and distribution for the
channel.
Ms. Corbi has been Chief Operating Officer of Crown Media Holdings since June
2000. Prior to that, she served as Chief Operating Officer of Odyssey Holdings
from April 1999. She was President, Network Distribution, of Fox Broadcasting
Company from May 1997 until April 1999. Before that, Ms. Corbi was Executive
Vice President, Network Distribution, of Fox Broadcasting Company from May 1996
until May 1997 and was President and Chief Operating Officer of Blackstar, LLC
from September 1995 until May 1996. Ms. Corbi also served as Senior Vice
President, Network Distribution, for Fox Broadcasting Company from October 1994
until September 1995.
Ms. Loesch, a multiple Emmy Award-winning producer and a Peabody Award winner,
was President of the Jim Henson Television Group from February 1998 to November
1998. As President of Jim Henson Television, Ms. Loesch was involved with
developing the agreement in which Hallmark Entertainment and the Jim Henson
Company partnered with the National Interfaith Cable Coalition in what was then
the Odyssey Channel, a faith-and-values program service. The deal was finalized
in November 1998.
Subsequently, in less than eighteen weeks Ms. Loesch oversaw the relocation of
the channel's headquarters from New York to Los Angeles, established a Chicago
Sales office, relocated the New York offices, built a new employee
infrastructure and established a West Coast feed for the previously single-feed
channel. The channel's program lineup was overhauled to appeal to a younger,
broader audience in April 1999.
The network transitioned through further significant ownership and format
changes, throughout which she also implemented an aggressive slate of original
movies, miniseries and series and directed program acquisition efforts as the
network further evolved into the new Hallmark Channel.
From the initial re-launch in 1999 through the re-branding to Hallmark Channel,
the network has made significant ratings gains while at the same time
dramatically transforming its viewing audience to a much younger demographic
with considerable increases among Adults 18-54. As a result, Hallmark Channel
saw significant growth in the recent upfront advertising market.
Moreover, under Ms. Loesch's watch the channel has entered into distribution
agreements that by the end of September will have increased the network's
full-time subscriber base by nearly 50% since December 2000. Chief among the
agreements are Hallmark Channel's recent DIRECTV deal, Time Warner Cable, AT&T
Broadband, Adelphia Communications and Charter Communications.
During her tenure with Hallmark Channel, Ms. Loesch was three-times named among
CableFax Daily's "100 Most Influential People in Cable" and was honored with a
Lifetime Achievement Award by Women in Cable and Telecommunications. She also
received the prestigious "Chair Award" from the Caucus for Television Producers
Writers and Directors.
Ms. Loesch joined The Jim Henson Television Group after serving as the founding
President and CEO as well as the architect of Fox Kids Networks Worldwide, which
included Fox Children's Network (FOX Kids) in the U.S., from which she resigned
as Vice Chairman in November 1997. She also was instrumental in the development
of Fox Kids Latin America, Fox Kids Australia and Fox Kids United Kingdom. She
joined FOX from Marvel Productions Ltd. where she had been President and Chief
Executive Officer since 1984. Prior to that, she was Executive Vice President
for Hanna-Barbera Productions, which she joined in 1979 as Vice President for
Children's Programming. Previously, she held positions in programming and
production at NBC and ABC in Los Angeles, where she began her television career
in 1971.
Crown Media Holdings, Inc. CRWN owns and operates pay television channels
dedicated to high quality, broad appeal entertainment programming. The company
currently operates and distributes two cable channels: Hallmark Channel in the
U.S. and Hallmark Channel in more than 100 international markets. The combined
channels have almost 80 million subscribers worldwide. Significant investors in
Crown Media Holdings include Hallmark Entertainment, Inc., a subsidiary of
Hallmark Cards, Inc., Liberty Media Corp., DIRECTV, Inc., VISN Management Corp.,
a for-profit subsidiary of the National Interfaith Cable Coalition, and J.P.
Morgan Partners (BHCA), L.P.
Hallmark Channel is a 24-hour television network that provides high-quality,
broad-appeal, entertainment programming to a national audience that is expected
to reach nearly 40 million subscribers by the end of September. The program
service is distributed in the United States through 1,700 cable systems, DIRECTV
(Channel 312) and EchoStar (DISH Channel 185) direct-to-home satellite services
and C-Band dish owners across the country. -HALLMARK CHANNEL-
Contact Information:
For additional information at The Hallmark Channel:
The Hallmark Channel
Mark J. Kern, 818/755-2626
MarkKern@hallmarkchannel.com
or
For additional information at Crown Media:
The Lippin Group/LA
Les Eisner, 323/965-1990
leisner@lippingroup.com
or
For Crown Media Investor Relations:
Lippert-Heilshorn & Associates
Mary Ellen Adipietro, 212/838-3777
mary@lhai.com
CROWN MEDIA COMPLETES ACQUISITION OF HALLMARK ENTERTAINMENT FILM ASSETS
COMPANY SECURES FIVE-YEAR $285 MILLION SECURED CREDIT FACILITY
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Oct. 1, 2001--Crown Media Holdings,
Inc. (Nasdaq: CRWN - news) today announced that it has completed the acquisition
of approximately 700 film titles, representing over 3,000 hours of programming,
from the film library of Hallmark Entertainment Distribution, LLC, ("HED") a
wholly-owned subsidiary of Hallmark Entertainment, Inc. ("HEI").
The titles acquired include such highly rated television movies and mini-series
as Alice In Wonderland, Merlin, Gulliver's Travels, the Temptations, Noah's Ark,
Cleopatra, Arabian Nights and Lonesome Dove. Other examples of titles included
in the transaction are rights to Laurel and Hardy and Our Gang movies from the
Hal Roach library and to many children's and young adult's titles from the
Kushner-Locke library, such as the Josh Kirby series.
Under the terms of the agreement, Crown Media has assumed $220 million of HEI
debt and payables, and issued approximately 33.7 million shares of its Class A
common stock at a stock price of $17.78, for a total purchase price of
approximately $820 million. The stock price was determined using the average of
the closing prices from November 6, 2000 (the date Crown Media announced it was
contemplating the transaction) to September 27, 2001 (the day prior to closing)
as provided in the terms of the acquisition. Of the shares issued in the
transaction, 425,000 shares were issued in escrow and will be returned to Crown
Media if a previously announced, proposed settlement of a shareholder lawsuit
relating to the transaction becomes final.
David Evans, President and CEO of Crown Media Holdings, commented, "This
transaction marks an important milestone in the development of Crown Media and
our goal of owning a significant portion of the content we air on the Hallmark
Channel. After many months of planning, we can now begin to leverage this vast
library of high-quality, family-focused content across a number of areas in our
business. And with the additional revenues and reduced programming expenses that
result, we expect to accelerate our progress to EBITDA break even. Taken
together, this translates into significant value for Crown Media and our
shareholders in the long-term."
The Crown Media Board appointed a Committee of independent directors to
consider, evaluate and negotiate this transaction. The Committee consisted of
five directors independent of HEI. The Committee engaged Salomon Smith Barney as
its financial adviser to assist with the transaction.
With the completion of this transaction, Hallmark Cards, HEI and HED now own
approximately 70 million shares of Crown Media (excluding the 425,000 shares
held in escrow), or approximately 67% of the shares outstanding, which control
approximately 91% of the voting power.
In connection with completing the acquisition of the film assets, Crown Media
entered into a credit agreement with a syndicate of banks, led by The Chase
Manhattan Bank, under which the banks have extended to Crown Media a five-year
$285 million secured credit facility. The loan is guaranteed by Crown Media's
subsidiaries and is secured by all assets of Crown Media and its subsidiaries. A
portion of the borrowings under the credit facility have been used to pay $120
million of debt assumed as part of the consideration for acquiring the film
assets and to repay $84 million outstanding under a $150 million line of credit
provided by a subsidiary a Hallmark Cards, Inc. The remaining balance of the
credit facility is available for general working capital purposes.
Upon repayment of the outstanding borrowings under the Company's existing $150
million line of credit, a subsidiary of Hallmark Cards, Inc. has agreed to
provide a new $150 million line of credit to Crown Media, with a final maturity
no later than five years. This line of credit is subordinate to the bank
facility, and its availability will be reduced dollar for dollar in an amount
equal to additional equity capital raised by Crown Media.
About Hallmark Entertainment, Inc.
Hallmark Entertainment is one of the world's leading producers and distributors
of mini-series and television movies. It is a subsidiary of Hallmark Cards, Inc.
About Hallmark Cards, Inc.
With annual revenues of $4.3 billion, Hallmark is known throughout the world for
its greeting cards and related personal expression products. The company's
Hallmark Entertainment, Inc. subsidiary is the world's leading producer of
movies and mini-series for television; its Binney & Smith subsidiary, maker of
Crayola crayons, is the leading producer of art materials for children and
students.
About Crown Media Holdings, Inc.
Crown Media Holdings, Inc. owns and operates pay television channels dedicated
to high quality, broad appeal, entertainment programming. The company currently
operates and distributes the Hallmark Channel in the U.S. and the Hallmark
Channel in more than 100 international markets. The combined channels have more
than 73 million subscribers worldwide. Significant investors in Crown Media
Holdings include Hallmark Entertainment, Inc., a subsidiary of Hallmark Cards,
Inc., Liberty Media Corp., DIRECTV, Inc., VISN Management Corp., a for-profit
subsidiary of the National Interfaith Cable Coalition, and J.P. Morgan Partners
(BHCA), L.P.
Forward-looking Statements
Statements contained in this press release may contain forward-looking
statements as contemplated by the 1995 Private Securities Litigation Reform Act
that are based on management's current expectations, estimates and projections.
Words such as "expects," "anticipates," "intends," "plans," "believes,"
"estimates," variations of such words and similar expressions are intended to
identify such forward-looking statements. Forward-looking statements are subject
to risks and uncertainties, which could cause actual results to differ
materially from those projected or implied in the forward-looking statements.
Such risks and uncertainties include: competition for distribution of channels,
viewers, advertisers, and the acquisition of programming; fluctuations in the
availability of programming; fluctuations in demand for the programming Crown
Media airs on its channels; and other risks detailed in the Company's filings
with the Securities and Exchange Commission, including the Risk Factors stated
in the Company's 10-K Report for the year ended December 31, 2000 and 10-Q
Report for the quarter ended June 30, 2001. Crown Media Holdings is not
undertaking any obligation to release publicly any updates to any forward
looking statements to reflect events or circumstances after the date of this
release or to reflect the occurrence of unanticipated events.
Contact:
For additional information at Crown Media:
Investor Relations:
Lippert/Heilshorn & Associates
Mary Ellen Adipietro, 212/838-3777
madipietro@lhai.com
Karen Pisciotta, 212/838-3777
kpisciotta@lhai.com
or
Media:
The Lippin Group/LA
Les Eisner, 323/965-1990
leisner@lippingroup.com
or
Lippert/Heilshorn & Associates
Elissa Grabowski, 212/838-3777
egrabowski@lhai.com
or
For additional information at Hallmark Cards:
Hallmark Cards
Steve Doyal, 816/274-4314
sdoyal2@hallmark.com
Julie O'Dell, 816/274-5961
jodell1@hallmarkcards.com
PAUL FITZPATRICK NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF
CROWN MEDIA HOLDINGS
STUDIO CITY, Calif.--Oct. 10, 2001-- Executive Also Retains Responsibility of
Overseeing Distribution Activities for Hallmark Channel U.S.
Paul FitzPatrick has been named executive vice president and chief operating
officer of Crown Media Holdings, Inc. CRWN, it was announced today by David
Evans, president and chief executive officer of the company.
Mr. FitzPatrick, who most recently was chief operating officer of Crown Media
United States, LLC, which operates the Hallmark Channel throughout the country,
replaces Lana Corbi, who last month was named president and chief executive
officer of Crown Media United States, LLC. In his role, Mr. FitzPatrick will
oversee the development and creation of new channels, business development,
business affairs, human resources and network information systems worldwide on
behalf of Crown Media Holdings.
Based in Crown Media Holdings' New York offices, Mr. FitzPatrick also will
retain the responsibility as head of distribution for the Hallmark Channel U.S.,
which he formally joined in 2000. In this capacity, he will jointly report to
Mr. Evans and Ms. Corbi.
Regarding the announcement, Mr. Evans stated, "Paul has played a major role in
leading the team that has greatly increased Hallmark Channel's distribution
throughout the U.S. His contributions to the success of the Hallmark Channel
have resulted in a much stronger channel for operators, advertisers and viewers.
I look forward to working with him on a more global level as we continue to
build a robust cable network throughout the world."
Ms. Corbi added, "It's been a delight working with Paul over the past year. I am
also pleased that he will be joining Crown Media Holdings, which will greatly
benefit from his expertise to further establish the Hallmark brand globally.
Paul has played a major role in growing the Hallmark Channel domestically and
now that we've reached 40 million homes, his ongoing involvement assures that
the channel will continue its rapid growth."
Prior to joining Hallmark Channel, Mr. FitzPatrick served as COO of the Golf
Channel, the first single sports genre cable network, where he was responsible
for overseeing programming, production and network operations, distribution,
marketing, advertising sales and information systems. Before that, Mr.
FitzPatrick was president and chief executive officer of NewsTalk Television, a
company he founded in 1988 and launched in 1994. Certain assets of the channel
were acquired by MSNBC in 1996.
Between 1991 and 1993, Mr. FitzPatrick was president and COO of The Weather
Channel in Atlanta, Georgia, where he was instrumental in executing major
changes in the network, including implementation of total quality management,
branding strategies and new business ventures.
Previously, he was president and COO of the Washington, D.C.-based Cable
Satellite Public Affairs Network (C-SPAN). While there, he was successful in
renewing C-SPAN's affiliation agreements, developing its first comprehensive
five-year business plan, and business and branding strategies as well as
overseeing the launch of C-SPAN 2.
Moreover, Mr. FitzPatrick was chief operating officer of Titsch Publishing, Inc.
from 1976 to 1983, during which his responsibilities included serving as
editor-in-chief of the company's ten trade and consumer publications, including
Cablevision and CED magazines. He also oversaw the startup and acquisition of
six additional magazines and newspapers.
Prior to entering the cable sector, he was involved in politics for seven years,
serving in the White House Office of Telecommunications and on the staffs of a
U.S. Senator and a U.S. Representative. In addition, he worked for Colorado
Governor John Vanderhoof and managed the 1976 Congressional campaign for
Colorado's Second Congressional District.
Born in Australia, Mr. Fitzpatrick earned a Bachelor of Arts degree in Political
Science from the College of the Holy Cross and a Masters of Science degree in
Telecommunications from the University of Colorado.
Crown Media Holdings, Inc. CRWN owns and operates pay television channels
dedicated to high quality, broad appeal entertainment programming. The company
currently operates and distributes two cable channels: Hallmark Channel in the
U.S. and Hallmark Channel in more than 100 international markets. The combined
channels have almost 80 million subscribers worldwide. Significant investors in
Crown Media Holdings include Hallmark Entertainment, Inc., a subsidiary of
Hallmark Cards, Inc., Liberty Media Corp., DIRECTV, Inc., VISN Management Corp.,
a for-profit subsidiary of the National Interfaith Cable Coalition, and J.P.
Morgan Partners (BHCA), L.P.
Hallmark Channel is a 24-hour television network that provides high-quality,
broad-appeal, entertainment programming to a national audience of nearly 40
million subscribers. The program service is distributed in the United States
through 1,700 cable systems, DIRECTV (Channel 312) and EchoStar (DISH Channel
185) direct-to-home satellite services and C-Band dish owners across the
country.
Contact Information:
For Crown Media:
Media:
The Lippin Group/LA
Les Eisner
323-965-1990
leisner@lippingroup.com
or
The Lippin Group/NY
Don Ciaramella
212-986-7080
don@lippingroup.com
or
Investor Relations:
Lippert/Heilshorn & Associates
Karen Pisciotta
212-838-3777
kpisciotta@lhai.com
or
For The Hallmark Channel:
The Hallmark Channel
Mark Kern
818-755-2626
MarkKern@hallmarkchannel.com
FOR IMMEDIATE RELEASE Contact: Mark J. Kern, 818.755.2626
October 15, 2001 Elizabeth Hillman, 818.755.2643
HALLMARK CHANNEL U.S. CONTINUES DISTRIBUTION MOMENTUM
AS NETWORK REACHES 40 MILLION SUBSCRIBERS
WITH ADDITION OF 1.4 MILLION NEW CHARTER CUSTOMERS;
55% YEAR-TO-YEAR GROWTH
Hallmark Channel U.S. continues its distribution momentum with the
addition this month of 1.4 million new Charter Communications customers
throughout the eastern United States. The additions bring the subscriber base of
the channel to 40 million and cap a 12-month period during which Hallmark
Channel added close to 15 million subscribers to its distribution, an increase
of 55+ percent.
Announcement of the new launches with Charter Communications was made by
Ron Garfield, Senior Vice President, Network Distribution and Service, Hallmark
Channel and Patty McCaskill, Vice President, Programming & Pay Per View, Charter
Communications. Hallmark Channel will now be available to customers of Charter
Communications systems throughout the company's Eastern Division, including
Alabama, Connecticut, Georgia, Kentucky, Louisiana, Massachusetts and Tennessee.
"Charter has been incredibly supportive of the Hallmark brand," said Mr.
Garfield. "We are very excited that this support translates into a substantial
number of Charter customers having the opportunity to now view the Hallmark
Channel."
Ms. McCaskill said, "Charter Communications serves customers in more
than 40 states nationally. We feel strongly that the Hallmark Channel is the
kind of product our customers would enjoy. With a brand as strong and
recognizable as Hallmark, Charter Communications can provide its customers with
high-caliber content that appeals to the entire family."
Hallmark Channel is a 24-hour television network that provides high
quality, broad-appeal, entertainment programming that is family-friendly to a
national audience of 40 million subscribers. The program service is distributed
through 1,700 cable systems, DirecTV (Channel 312) and EchoStar (DISH Channel
185) direct-to-home satellite services and C-Band dish owners across the
country. Crown Media Holdings, Inc. (NASDAQ NM: CRWN) owns and operates the
Hallmark Channel which, in addition to the U.S., is distributed worldwide to 100
international markets. The combined channels reach 80 million subscribers
globally.
CROWN MEDIA HOLDINGS TO CONSOLIDATE WORLDWIDE ORGANIZATION
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Oct. 25, 2001-- Initiative to
Integrate Domestic and International Efforts, Strengthening Global Hallmark
Channel Brand
Crown Media Holdings, Inc. CRWN today announced that it is consolidating its
worldwide organization to capitalize on opportunities for operating efficiencies
within its worldwide divisions and to strengthen the global Hallmark Channel
brand.
The reorganization will create a seamless organization with enhanced
communication flow between all divisions. The revised structure will, among
other things, allow Crown Media Holdings to execute a regionalized marketing
structure worldwide while consolidating its staff.
David Evans, president and chief executive officer of Crown Media Holdings,
said, "This reorganization of our domestic and international operations is an
inevitable step in the evolution of our business. As a global channel televised
in more than 100 countries, it is increasingly important for us to create an
efficient and effective structure. At the same time, particularly in today's
economic environment, it is prudent for us to capitalize on the economies of
scale available in a global brand. Some staff reductions will result, which is
always difficult."
In order to achieve these objectives, Crown Media Holdings has reorganized its
staff, particularly in marketing, finance and administrative operations, with
the intent to create a stronger unit with much more efficient mechanisms in the
United States and abroad to operate its channels. With the increased regional
input provided under this structure, the company expects to further build the
global Hallmark Channel brand and be even more sensitive to regional and local
distribution and programming issues. The restructuring will result in a net
reduction of approximately 15% of its global workforce, which will be achieved
through a combination of attrition, contract expirations and layoffs.
About Crown Media Holdings, Inc.
Crown Media Holdings, Inc. owns and operates pay television channels dedicated
to high quality, broad appeal, entertainment programming. The company currently
operates and distributes the Hallmark Channel in the U.S. and more than 100
international markets. The combined channels have over 80 million subscribers
worldwide. Significant investors in Crown Media Holdings include Hallmark
Entertainment, Inc., a subsidiary of Hallmark Cards, Inc., Liberty Media Corp.,
DIRECTV, Inc., VISN Management Corp., a for-profit subsidiary of the National
Interfaith Cable Coalition, Inc. and J.P. Morgan Partners (BHCA), L.P.
Forward-looking Statements
Statements contained in this press release may contain forward-looking
statements as contemplated by the 1995 Private Securities Litigation Reform Act
that are based on management's current expectations, estimates and projections.
Words such as "expects," "anticipates," "intends," "plans," "believes,"
"estimates," variations of such words and similar expressions are intended to
identify such forward-looking statements. Forward-looking statements are subject
to risks and uncertainties, which could cause actual results to differ
materially from those projected or implied in the forward-looking statements.
Such risks and uncertainties include: competition for distribution of channels,
viewers, advertisers, and the acquisition of programming; fluctuations in the
availability of programming; fluctuations in demand for the programming Crown
Media airs on its channels; and other risks detailed in the Company's filings
with the Securities and Exchange Commission, including the Risk Factors stated
in the Company's 10-K Report for the year ended December 31, 2000 and 10-Q
Report for the quarter ended June 30, 2001. Crown Media Holdings is not
undertaking any obligation to release publicly any updates to any forward
looking statements to reflect events or circumstances after the date of this
release or to reflect the occurrence of unanticipated events.
Contact Information:
Investor Relations:
Lippert/Heilshorn & Associates
Karen Pisciotta, 212/838-3777
kpisciotta@lhai.com
or
Media:
The Lippin Group/LA
Les Eisner, 323/965-1990
leisner@lippingroup.com
The Lippin Group/NY
Don Ciaramella, 212/986-7080
don@lippingroup.com