Hollywood Media Corp.

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Hollywood Media Corp. Reports 2013 Second Quarter Results

BOCA RATON, FL -- (Marketwired) -- 08/14/13 -- Hollywood Media Corp. ("Company") (NASDAQ: HOLL) today reported financial results for the second quarter ended June 30, 2013.

On a continuing operations basis, which includes the contribution from Tekno Books, the Company's 100% owned subsidiary under the Intellectual Property division, net revenues for the 2013 second quarter were $0.1 million compared to $0.2 million in the prior-year period.

Loss from continuing operations for the 2013 second quarter was $0.1 million, or $0.01 per share, compared to a loss from continuing operations for the 2012 second quarter of $1.3 million, or $0.06 per share. Net loss, which includes discontinued operations, was $0.1 million, or $0.01 per share, in the 2013 second quarter, compared to net loss of $0.5 million, or $0.02 per share, in the prior-year period. Income from discontinued operations during the 2012 second quarter primarily consisted of a $0.6 million gain on the sale of the Company's U.K.-based CinemasOnline business.

At June 30, 2013, the Company had cash and cash equivalents of $9.7 million and no debt as compared to cash and cash equivalents of $11.4 million and no debt at December 31, 2012.

The Company repurchased 521,500 shares of Hollywood Media's common stock for $0.8 million during the first half of 2013, comprised of 510,700 shares in first quarter 2013 and 10,800 shares in second quarter 2013.

On August 8, 2013, the Company entered into the Transaction Agreement (the "Agreement") among Key Brand Entertainment Inc. ("Key Brand"), Theatre Direct NY, Inc. ("Theatre Direct"), and the Company for the prepayment by Key Brand in full of the amount owed to the Company pursuant to the loan (the "Loan") under the Second Lien Credit, Security and Pledge Agreement, dated as of December 15, 2010, among Key Brand, Theatre Direct, and the Company, as amended. Pursuant to the Agreement, Key Brand paid to the Company on August 8, 2013 in cash the amount of $13,861,738, which constituted the outstanding principal plus accrued interest through August 8, 2013 of the Loan. The Loan was scheduled to mature on June 30, 2015.

In addition, pursuant to the Agreement, Theatre Direct redeemed a warrant ("Warrant") to purchase shares of common stock of Theatre Direct held by the Company. The redemption price for the Warrant was $2,750,000 and was paid on August 8, 2013 to the Company. The Warrant provided, among other things, that the Company could sell the Warrant to Theatre Direct for a floor amount of $3,000,000 beginning on June 30, 2015.

Accordingly, the Company received on August 8, 2013 a total of $16,611,738 consisting of $13,861,738 from the prepayment of the Loan and $2,750,000 from the redemption of the Warrant.

About Hollywood Media Corp.

Hollywood Media Corp. is comprised primarily of an Ad Sales division and an Intellectual Property division.

Note on Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous potential risks and uncertainties, including, but not limited to, the need to manage our growth, our ability to realize anticipated revenues and cost efficiencies, the impact of potential future dispositions or other strategic transactions by Hollywood Media Corp., our ability to develop and maintain strategic relationships, technology risks, the volatility of our stock price, and other risks and factors described in Hollywood Media Corp.'s filings with the Securities and Exchange Commission including our Form 10-K for 2012. Such forward-looking statements speak only as of the date on which they are made.


                   HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED BALANCE SHEETS

                                                  June 30,     December 31,
                                                    2013           2012
                                               -------------  -------------
                                                (unaudited)
                    ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                    $   9,669,277  $  11,378,519
  Prepaid expenses                                 1,227,912        329,915
  Other receivables                                   69,953         75,105
  Notes receivable, current                        1,567,837      1,375,545
  Related party receivable                            26,552         37,287
  Current portion of deferred compensation           430,000        430,000
                                               -------------  -------------
    Total current assets                          12,991,531     13,626,371

PROPERTY AND EQUIPMENT, net                          286,604        240,645
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED
 INVESTEES                                           138,082        138,384
INTANGIBLE ASSETS, net                                 4,466          8,683
GOODWILL                                           6,200,000      6,200,000
OTHER ASSETS                                         727,982        727,982
NOTES RECEIVABLE, less current portion             4,195,677      4,455,106
WARRANT                                              750,000        700,000
DEFERRED COMPENSATION, less current portion          303,651        518,651
                                               -------------  -------------
    TOTAL ASSETS                               $  25,597,993  $  26,615,822
                                               =============  =============

     LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                             $     664,588  $     414,123
  Accrued expenses and other                         851,587      1,036,788
  Deferred revenue                                   104,451        111,669
  Current portion of capital lease obligations        15,023         16,255
                                               -------------  -------------
    Total current liabilities                      1,635,649      1,578,835

CAPITAL LEASE OBLIGATIONS, less current
 portion                                              30,444          2,152
OTHER DEFERRED LIABILITY                                 161            355
DEFERRED REVENUE                                       9,000         14,000
DERIVATIVE LIABILITIES                                60,000         60,000
                                               -------------  -------------
    TOTAL LIABILITIES                              1,735,254      1,655,342
                                               -------------  -------------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
  Preferred Stock,  $. 01 par value, 1,000,000
   shares authorized; none outstanding                     -              -
  Common stock,  $. 01 par value, 100,000,000
   shares authorized; 22,640,966 and
   23,162,466 shares issued and outstanding at
   June 30, 2013 and December 31, 2012,
   respectively                                      226,410        231,625
  Additional paid-in capital                     292,831,089    293,591,903
  Accumulated deficit                           (269,194,760)  (268,863,048)
                                               -------------  -------------
    Total shareholders' equity                    23,862,739     24,960,480
                                               -------------  -------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $  25,597,993  $  26,615,822
                                               =============  =============


                   HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (unaudited)


                             SIX MONTHS ENDED         THREE MONTHS ENDED
                                 JUNE 30,                  JUNE 30,
                         ------------------------  ------------------------
                             2013         2012         2013         2012
                         -----------  -----------  -----------  -----------


NET REVENUES             $   183,461  $   333,047  $   102,402  $   156,213

OPERATING COSTS AND
 EXPENSES
  Editorial, production,
   development and
   technology                113,322      282,776       55,824      157,672
  Selling, general and
   administrative          1,696,191    1,200,978      755,144      696,132
  Payroll and benefits       898,787    1,250,583      467,541      851,862
  Depreciation and
   amortization               42,088       75,164       20,953       37,570
                         -----------  -----------  -----------  -----------

    Total operating
     costs and expenses    2,750,388    2,809,501    1,299,462    1,743,236
                         -----------  -----------  -----------  -----------

    Loss from operations  (2,566,927)  (2,476,454)  (1,197,060)  (1,587,023)
                         -----------  -----------  -----------  -----------


(LOSSES) EARNINGS OF
 UNCONSOLIDATED
 INVESTEES                      (292)      17,815         (140)     (53,982)
                         -----------  -----------  -----------  -----------

OTHER INCOME (EXPENSE)
  Interest, net              973,847      513,009      480,547      259,972
  Accretion of discount,
   net of allowance for
   uncollectability        1,250,373            -      639,894            -
  Other, net                  52,124       (1,674)      51,586       32,203
                         -----------  -----------  -----------  -----------
    Total other income     2,276,344      511,335    1,172,027      292,175
                         -----------  -----------  -----------  -----------

      Loss from
       continuing
       operations before
       income taxes         (290,875)  (1,947,304)     (25,173)  (1,348,830)
      Income tax
       (expense)             (40,837)           -      (17,857)           -
                         -----------  -----------  -----------  -----------
        Loss from
         continuing
         operations         (331,712)  (1,947,304)     (43,030)  (1,348,830)
                         -----------  -----------  -----------  -----------

      Gain on sale of
       discontinued
       operations, net
       of income taxes             -      975,973            -      778,456
      Income from
       discontinued
       operations                  -       22,584            -       34,166
                         -----------  -----------  -----------  -----------

      Income from
       discontinued
       operations                  -      998,557            -      812,622
                         -----------  -----------  -----------  -----------

      Net loss           $  (331,712) $  (948,747) $   (43,030) $  (536,208)
                         ===========  ===========  ===========  ===========


Basic and diluted (loss)
 income per common share
      Continuing
       operations        $     (0.01) $     (0.08) $     (0.01) $     (0.06)
      Discontinued
       operations                  -         0.04            -         0.04
                         -----------  -----------  -----------  -----------
      Total basic and
       diluted net loss
       per share         $     (0.01) $     (0.04) $     (0.01) $     (0.02)
                         ===========  ===========  ===========  ===========

Weighted average common
 and common equivalent
 shares outstanding -
 basic and diluted        22,712,110   23,179,066   22,648,740   23,179,066
                         ===========  ===========  ===========  ===========

Source: Hollywood Media Corp.

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