New Frontier Media Announces Quarterly Cash Dividend of $0.125 per Share

New Frontier Media Announces Quarterly Cash Dividend of $0.125 per Share

BOULDER, Colo., May 8 /PRNewswire-FirstCall/ -- New Frontier Media, Inc. (NASDAQ:NOOF), a worldwide producer and distributor of adult-themed and general motion picture entertainment, today announced that its Board of Directors has declared its first quarterly cash dividend of $0.125 per share of common stock, payable on June 29, 2007, to shareholders of record on June 4, 2007.

The Company intends to pay a regular quarterly cash dividend of $0.125 per share of common stock for the foreseeable future at the discretion of the Board of Directors depending on available cash, anticipated cash needs, and overall financial conditions. Future quarterly dividends are expected to be paid in September, December, and March of each year. The Company believes that based on its current share price this program will provide a larger dividend yield than that of nearly every other media company in the U.S. The new regular quarterly dividend replaces -- and we believe improves upon -- the dividend program that the Company announced in December of 2006 which was based on a percentage of free cash flow.

"There can be no better demonstration of the solid financial performance of our company than today's announcement of our intention to provide material, recurring cash returns to our investors," said Michael Weiner, Chief Executive Officer of New Frontier Media.

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 to pay a regular quarterly dividend for the foreseeable future, the belief that based on our current share price that this program will provide a larger dividend yield than that of nearly every media company in the U.S., the belief that the new regular quarterly dividend improves upon the dividend program that the Company announced in December 2006, our intention to provide material, recurring cash returns to our investors, 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 as a result of new information or future events. Please refer to the Company's Form 10-K under the caption "Risk Factors" and our other periodic and current reports filed by us with the SEC for additional information regarding risks and uncertainties associated with an investment in our securities. Copies of these filings are available through the SEC's website 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 The Erotic Networks(R) 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 139 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 x 102, kmiller@noof.com

Web site:

http://www.noof.com/

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