New Frontier Media Announces Shareholder Dividend Program

New Frontier Media Announces Shareholder Dividend Program

Company Will Pay $0.60 Per Share Special Dividend As Well As Ongoing Dividend Of 60% Of Free Cash Flow

BOULDER, Colo., Dec. 7 /PRNewswire-FirstCall/ -- New Frontier Media, Inc. (NASDAQ:NOOF), a worldwide producer and distributor of general and adult-themed motion picture entertainment, today announced that its Board of Directors has declared a special dividend of $0.60 per share payable on February 14th 2007, to shareholders of record as of January 15th 2007. In addition, the Company announced a semi-annual dividend program in the amount of 60% of the Company's free cash flow, defined as cash flows from operations less capital expenditures. The first payment of the ongoing dividend program is intended to be payable to shareholders of record as of September 30, 2007. The Company believes that based on the present share price, and present free cash flow, that this program will provide a larger dividend yield than that of almost every media company in America.

"The adoption of this new dividend policy is evidence of our ongoing commitment to creating long-term shareholder value," said Michael Weiner, Chief Executive Officer of New Frontier Media. "We have built a solid business with sufficient free cash flow to both fuel our growth and provide an on-going return to investors. Whether it's a strategic acquisition, a stock buy-back, or an enhanced dividend, New Frontier Media will continue to make prudent moves at the right moments to benefit shareholders."

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. All statements in this release regarding the Company's intention for the first payment of the ongoing dividend program to be payable to shareholders of record on September 30, 2007, the Company's belief that based on the present share price and present free cash flow that the dividend program will provide a larger dividend yield than that of almost every media company in America, and the future outlook related to New Frontier Media and the outcome of any contingencies are 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. 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 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 worldwide producer and distributor of adult-themed and general motion picture entertainment. Under The Erotic Networks trademark, the Company delivers seven, full-time adult-themed pay-per-view networks to cable and satellite operators across the United States. Additionally, the Company is a leading provider of adult-themed Video-on-Demand content to cable and satellite platforms, as well as to the hospitality industry. These services reach over 125 million network homes.

New Frontier Media's MRG Entertainment unit produces original, adult-themed content and series that are distributed on premium movie channels in the U.S. and around the world. MRG Entertainment also develops and produces original, adult-themed event programming that is widely distributed on satellite and cable platforms in the U.S. Additionally, MRG Entertainment manages a sales operation, which matches independent, mainstream film producers with film distributors around the world.

New Frontier Media owns and operates a digital broadcast infrastructure in Colorado, which serves content to broadcast, IP and wireless networks around the world.

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

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.noof.com/

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