New Frontier Media, Inc. Considering Strategic Options

New Frontier Media, Inc. Considering Strategic Options

BOULDER, Colo., Aug. 16 /PRNewswire-FirstCall/ -- New Frontier Media, Inc. (NASDAQ:NOOF), a leader in the electronic distribution of adult entertainment, announced today that its Board of Directors, being committed to strengthening the financial performance of the Company and positioning the business for future growth, is carefully considering strategic options to improve the profitability and growth prospects of the Company. In connection with its internal strategic review of the business, the Board of Directors has retained Averil Capital Markets Group, Inc. to assist in exploring strategic options that may enhance shareholder value. Such strategies may include, but are not limited to, acquisitions, strategic joint ventures, recapitalizations, mergers and/or share repurchases. The Board of Directors will evaluate the alternatives and pursue those it believes are in the best interest of the Company and its shareholders. At this time, there can be no assurance that this strategic analysis will result in any transaction(s).

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. The Company intends for the forward-looking statements to be 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 include, but are not limited to, the Company's ability to improve profitability and growth and the outcome of any contingencies. 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. 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. Please refer to the Company's Form 10-K and other filings with the 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 system (EDGAR) at www.sec.gov.

ABOUT NEW FRONTIER MEDIA, INC.

New Frontier Media, Inc. is a leading distributor of adult entertainment via electronic platforms. The Company delivers the most extensive lineup of quality programming over the broadest range of electronic means, including cable, satellite, broadband, video-on-demand and wireless.

The Erotic Networks(TM), the umbrella brand for the Company's subscription and pay television subsidiary, provides pay-per-view, video-on-demand, and subscription TV networks and services to over 80 million cable, DBS (direct broadcast satellite) and C-band households throughout North America. The Erotic Networks(TM) include Pleasure(TM), TEN(TM), TEN*Clips(TM), TEN*Xtsy(TM), TEN*Blue(TM), TEN*Blox(TM), TEN*Max(TM) and TEN*On Demand(TM). These networks and services represent the widest variety of editing standards available and are programmed without duplication to offer the most extensive selection of adult network programming under a single corporate umbrella.

For more information contact Karyn Miller, Chief Financial Officer, at (303) 444-0900, extension 102, and please visit our web site at www.noof.com.

ABOUT AVERIL CAPITAL MARKETS GROUP, INC.

Averil Capital Markets Group, Inc. ("Averil Capital") is a boutique investment bank, headquartered in Los Angeles, California, specializing in mergers & acquisitions and capital raising transactions for small- and mid-cap, publicly traded companies in the United States, Europe and Asia. The principals of the firm have extensive financial and legal experience and have been involved in transactions totaling more than $10 billion in value. Diana L. Maranon, the founder of the firm, was a securities attorney with Skadden, Arps, Slate, Meagher & Flom and an investment banker with Wasserstein Perella & Co., Inc. prior to establishing Averil Capital. Selected transactions include the management buyout of Virgin Interactive, plc, the going private transaction involving eMachines, Inc., and the sale of eMachines, Inc. to Gateway, Inc. Averil Capital is a licensed broker dealer with the National Association of Securities Dealers. The Company's web site is www.averil.com. For more information, please contact Ms. Maranon at Averil Capital at (310) 553-5351.

Source: New Frontier Media, Inc.

CONTACT: Karyn L. Miller, Chief Financial Officer of New Frontier Media,
Inc., +1-303-444-0900, ext. 102, kmiller@noof.com

Web site: http://www.averil.com/

Web site: http://www.noof.com/

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