LOS ANGELES--(ENTERTAINMENT WIRE)--June 4, 1999--Califa Entertainment Group Inc. Friday announced the successful completion of the transition of the Spice Hot network from Spice Entertainment to Califa ahead of schedule.

The network, which has now been renamed The Hot Network, is currently available in 8 million homes.

Since the close of the acquisition on March 15, Califa has successfully renewed agreements with pre-existing Spice Hot distributors. In the case of more than 85% of homes served, the new agreements extend the terms for additional years.

These agreements, combined with new distributors who have signed up since the acquisition, have enabled the network to pass the 8 million home mark for the first time.

The Hot Network offers adult programming edited to more liberal standards than those seen on television prior to the creation of the channel. The service has secured exclusive agreements with the top adult studios for the ``hot'' versions of their films.

Stated Califa President Bill Asher, ``Our commitment to offering the best product available in a proven programming category has enabled us to create the greatest possible value for our distributors. We are extremely pleased with the support we have received for this business concept.''

Asher also noted that Califa is staffed by former executives from both Playboy and Spice. ``The immense experience and professionalism that we bring to the table gives distributors confidence that they are partnering with a well-managed, responsible service,'' he added.

Califa Entertainment Group Inc. is the owner of The Hot Network. The name change from Spice Hot to The Hot Network was made to end the confusion between this network and the more heavily edited Spice network owned by Playboy. The Hot Network is the dominant adult service in the ``hot'' category.