(BOULDER, CO) -- New Frontier Media, Inc. (Nasdaq: NOOF - news), a leader in the electronic distribution of adult entertainment, announced that the Company's Internet division -- collectively referred to as the IGallery Companies -- reported substantial progress in the areas of traffic generation, new membership generation and resale of content. Specifically, the Company reported that the current number of unique visits to its membership sites increased by 33% since the quarter ended September 30, 1999. In addition, the current average daily sign-up rate for its subscription memberships has increased by approximately 40% over the same period. The Company attributes growth in unique visits to increased webmaster participation and growth in average daily sign-up rates to improvements in traffic conversion.

Separately, the Company announced its operating officers have completed a comprehensive plan of integration that includes, among other things, content and technology sharing between the television and Internet subsidiaries, cross promotions, public relations and new product development. The first phase of that plan has been completed.

``We are pleased that the integration process is progressing so smoothly. Our objectives are very well defined. In addition, as part of the overall corporate strategy, we intend on becoming active consolidators in the Internet-based adult entertainment industry. We've already identified several key acquisitions which are currently under review,'' commented Gregory Dumas, President of Interactive Gallery, Inc.

The Company also completed its preliminary capital budgeting process for the remainder of its fiscal year ending March 2000. Among the approved projects slated for development are a comprehensive upgrade of the Company's Data Center to accommodate the infrastructure necessary to support expanded credit card processing functions, and greatly enhanced bandwidth, routing and server capabilities. In addition, the Company has approved budgets for the continued development and deployment of its Broadband Internet service and the acquisition of numerous additional high-traffic generating vanity domain names.

``The next eighteen to twenty-four months should represent a period of rapid growth for the Company as a result of new resources that have heretofore not been available to our Internet subsidiaries in the areas of content, capital, and partnerships that are being forged with Broadband Internet service providers,'' commented Mark H. Kreloff, Chairman and Chief Executive Officer of New Frontier Media, Inc. ``We intend to focus our efforts in the near-term on content delivery technology upgrades, traffic generating acquisitions, hardware and software enhancements to existing billing technologies and the development of new proprietary billing methodologies,'' continued Kreloff.

ABOUT NEW FRONTIER MEDIA

New Frontier Media, Inc. is a leader in the electronic distribution of adult entertainment with an unparalleled library of content. Through its television subsidiary, the Company distributes adult entertainment via pay-per-view and subscription cable/satellite video networks. Cable/DBS networks include TeN(TM) (The Erotic Network), which incorporates partial-editing standards and Pleasure(TM), which incorporates the most-edited standard available in the category. Through its Internet subsidiaries, New Frontier Media designs, creates and implements company-owned subscription/membership-based web sites for the adult Internet consumer markets. It also operates traffics sales and acquisition programs for the adult webmaster community. In addition, the Company serves as a single source for a comprehensive range of high-performance Internet products and services, including transaction processing, dedicated access, web hosting, co-location, e-commerce application development, streaming media, and bandwidth management. New Frontier Media's network infrastructure enables the delivery of live and on-demand video events to millions of Internet users.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The Company intends the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. All statements regarding the Company's expected financial position and operating results, its business strategy, its financing plans 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.

SOURCE: New Frontier Media, Inc.