News Announcement

CONTACT:
Joel Getzler, Getzler & Co., Inc.
212/697-2400

                              FOR IMMEDIATE RELEASE

                     UNITEL VIDEO, INC. FILES FOR VOLUNTARY
                 CHAPTER 11, ANTICIPATES OBTAINING $3.5 MILLION
                POST-PETITION FINANCING FOR CONTINUING OPERATIONS

            New York, New York - September 3, 1999 - Unitel Video, Inc.
(AMEX:UNV) (the "Company") announced today that, on September 2, 1999 (the
"Filing Date"), it and its domestic subsidiaries (R Squared, Inc. ("R Squared"),
Unitel 53 LLC, and Unitel 57 LLC) filed voluntary petitions for relief under
Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware. The Chapter 11 filings, supported by
proposed debtor-in-possession financing being provided by Heller Financial,
Inc., will enable the Company to conduct its business or, additionally or in the
alternative, find a strategic buyer of its divisions or business or an investor
for its business while it attempts to negotiate a plan to reorganize with its
major creditors and to seek additional capital.

            Subject to court approval, the Company expects to use the $3.5
million debtor-in-possession commitment from Heller Financial, Inc., coupled
with operating revenue, to fulfill obligations associated with operating its
business.

            In addition, the Company announced that, on September 2, 1999, the
Company closed its post-production division located at 8 West 38th Street in New
York City and terminated substantially all of its employees working in such
division.

            The Company also announced that Walter Arader has resigned from the
Board of Directors.

            Commenting on the announcement, Abraham E. Getzler, Chairman of
Getzler & Co., Inc., the Company's management consultant which is overseeing and
managing the day-to-day operations of the Company, said, "The filing, coupled
with the new financing, affords the Company the opportunity to stabilize its
financial situation, restructure its balance sheet, and reinforce and maximize
the underlying value of its business to attract additional investors or
strategic partners."



            As of May 31, 1999, the Company had consolidated assets (unaudited)
of approximately $56.8 million and consolidated liabilities (unaudited) of
approximately $52.4 million.

            Unitel is a leading provider of studio and mobile production
facilities to virtually every major entertainment company in the United States.
Unitel's New York City studios are home to King World Production's "Inside
Edition", Paramount Picture's "The Montel Williams Show", and Eyemark
Entertainment's the "Dr. Joy Browne Show". Unitel Mobile Video, based in
Pittsburgh and Burbank, is the pre-eminent supplier of mobile facilities to the
entertainment industry.

            This news announcement contains certain forward-looking statements
under federal securities laws which are based upon current expectations and
involve certain risks and uncertainties. Under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, readers should note that these
statements may be impacted by several factors, and, accordingly, Unitel's actual
performance and results may vary from those stated herein.