(SHERMAN OAKS, CA) -- Vivid Entertainment Group, for many years the market leader in adult film and video, has another pair of winners on its hands with The Hot Network and The Hot Zone, which have become the fastest growing pay-per-view channels in the country. The Hot Network and The Hot Zone Take the Lead in Less Than a Year.

The networks, operated as subsidiaries of the company's new media group, Vivid On Demand, Inc. (VOD, Inc.), were purchased last spring with six million addressable homes and are already available in over 21 million addressable homes nationwide.

"This phenomenal growth reflects our decision to offer customers somewhat racier erotic fare that is not explicit or violent," said Bill Asher, President and Chief Executive of VOD and President of The Hot Networks.

The "Hot" channels give viewers exclusive adult movie premieres from the leading adult entertainment studios, and feature all the top adult stars. As a result, The Hot Network and The Hot Zone enjoy the highest buy rates among all adult pay-per-view channels, Mr. Asher said.

"People love our programming because it is original and has a realistic and unedited feel," Mr. Asher said. "In fact all of our programming is pre-screened by First Amendment attorneys. Cable system operators trust us because we never put on content that might embarrass our affiliates. The Hot Networks adhere to a strict set of content guidelines and portray only widely accepted sexual activity, never connect violence with sex, and advocate safe sexual practices. But, there's no doubt that it is hot and high quality erotic programming - that's what people want."

Mr. Asher said The Hot Network is currently ranked as the No. 1 adult pay-per-view revenue generator for cable systems and DBS platforms, surpassing its nearest rival, The Playboy Channel, while The Hot Zone is the No. 3 network, ahead of the Spice Network's order volume.

He noted that success of Vivid's new networks can be traced to more mainstream acceptance of sexual content in the media in general. "Premium cable channels broadcast very sexy material at night. The top women's magazines publish articles and photos that were unacceptable a few years ago. We're succeeding by being out in front and taking the next step," he noted.

Mr. Asher, a former Playboy Enterprises executive who established adult cable channels in North and South America, Europe and Asia, has assembled a team of veteran cable executives to develop The Hot Networks as one of Vivid Video's major revenue generators.

``The Hot Network and The Hot Zone are important beginnings for VOD, Inc., which Vivid will use as its broadband platform as we enter the 21st Century, beginning with adult video-on-demand and an array of exciting interactive services,'' Mr. Asher said.

VOD, Inc. is already beginning to preview technological advances that will put the company in the forefront of the Broadband revolution, including a video-on-demand package that will enable viewers to ``edit'' films as they watch by zooming in for close-ups and using pause, fast forward, rewind and other techniques.

About The Hot Networks

The Hot Network, formerly known as Spice Hot, was purchased in March 1999. The Hot Zone was launched in June 1999. Both networks adhere to a strict set of content guidelines and portray only widely accepted sexual activity. No scenes of violence, non-consenting sexual activity, incest, sadomasochism, forced bondage, bestiality, sexual activity with minors or drug usage are depicted. The Hot Networks prohibits underage viewership.

The Hot Network is on Telstar 7, transponder 5 and channel 0401. The Hot Zone is on Telstar 7, transponder 5 and Channel 0101. (The Hot Network and The Hot Zone will be on Telstar 7 permanently beginning 12/16/99 and will be dual illuminated beginning 11/8/99. The transponder and channels will remain the same.)