Crown Media Narrows Loss

STUDIO CITY, May 10: Crown Media Holdings has narrowed its
first-quarter net loss from $47.2 million to $40.2 million, with revenues up 19
percent to $53.6 million.

The revenue increase was primarily due to a 20 percent
increase in advertising revenues to $46 million and a 20 percent increase in
subscriber fee revenues to $7.5 million. In the period, Hallmark Channel
subscribers increased 6 percent to 76.2 million as of March 31, 2007.

"We have had a tremendous start to 2007, with our
continued ratings success as a top-rated cable network, unprecedented increases
in advertising revenues and explosive growth in subscribers," said Henry
Schleiff, the president and CEO of Crown Media. "Combine this with the
renewal of three major distribution agreements with important partners on
attractive terms, and the result is a cable network that is extremely
well-positioned to benefit from the value that is being created. As we look
ahead, we are confident that the exciting lineup of our brand-defining quality
and wholesome, family friendly programming will continue to resonate with advertisers
as we enter the upfront negotiations and, in addition, will appeal to our
expanding audience of viewers during the summer and into our popular winter
holiday season. We expect that the momentum of the first quarter will carry us
through 2007 to produce a year filled with solid operating achievements."