Hollywood Media Corp.

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Hollywood Media Corp. Reports 2013 Third Quarter Results

BOCA RATON, FL -- (Marketwired) -- 10/29/13 -- Hollywood Media Corp. ("Company") (NASDAQ: HOLL) today reported financial results for the third quarter ended September 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 third quarter were $0.1 million compared to $0.1 million in the prior-year period.

Income from continuing operations for the 2013 third quarter was $8.2 million, or $0.36 per share, compared to a loss from continuing operations for the 2012 third quarter of $2.3 million, or $0.10 per share, which includes a non-cash goodwill impairment charge of $3.6 million relating to the Company's Ad Sales division. Income from continuing operations for the 2013 third quarter was primarily attributable to a $9.2 million gain from the Transaction Agreement (as defined below). Net income was $8.2 million, or $0.36 per share, in the 2013 third quarter, compared to net loss, which includes discontinued operations, of $0.5 million, or $0.02 per share, in the prior-year period.

At September 30, 2013, the Company had cash and cash equivalents of $24.9 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 three quarters 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.

Attached are the following financial tables:
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



                HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS

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

CURRENT ASSETS:
  Cash and cash equivalents                $    24,867,007  $    11,378,519
  Prepaid expenses                               1,102,064          329,915
  Other receivables                                 74,893           75,105
  Notes receivable, current                         33,603        1,375,545
  Related party receivable                          21,883           37,287
  Current portion of deferred compensation         430,000          430,000
                                           ---------------  ---------------
    Total current assets                        26,529,450       13,626,371

PROPERTY AND EQUIPMENT, net                        360,574          240,645
INVESTMENTS IN AND ADVANCES TO
 UNCONSOLIDATED INVESTEES                          139,145          138,384
INTANGIBLE ASSETS, net                               2,358            8,683
GOODWILL                                         6,200,000        6,200,000
OTHER ASSETS                                       195,928          727,982
NOTES RECEIVABLE, less current portion              84,007        4,455,106
WARRANT                                                  -          700,000
DEFERRED COMPENSATION, less current
 portion                                           196,151          518,651
                                           ---------------  ---------------
    TOTAL ASSETS                           $    33,707,613  $    26,615,822
                                           ===============  ===============

   LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                         $       478,144  $       414,123
  Accrued expenses and other                       964,164        1,036,788
  Deferred revenue                                  82,451          111,669
  Current portion of capital lease
   obligations                                      11,318           16,255
                                           ---------------  ---------------
    Total current liabilities                    1,536,077        1,578,835

CAPITAL LEASE OBLIGATIONS, less current
 portion                                            28,640            2,152
OTHER DEFERRED LIABILITY                                65              355
DEFERRED REVENUE                                     9,000           14,000
DERIVATIVE LIABILITIES                              60,000           60,000
                                           ---------------  ---------------
    TOTAL LIABILITIES                            1,633,782        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 September 30, 2013
   and December 31, 2012, respectively             226,410          231,625
  Additional paid-in capital                   292,831,089      293,591,903
  Accumulated deficit                         (260,983,668)    (268,863,048)
                                           ---------------  ---------------
    Total shareholders' equity                  32,073,831       24,960,480
                                           ---------------  ---------------
    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                $    33,707,613  $    26,615,822
                                           ===============  ===============




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


                             NINE MONTHS ENDED        THREE MONTHS ENDED
                               SEPTEMBER 30,             SEPTEMBER 30,
                         ------------------------  ------------------------
                             2013         2012         2013         2012
                         -----------  -----------  -----------  -----------


NET REVENUES             $   323,445  $   429,082  $   139,984  $    96,035

OPERATING COSTS AND
 EXPENSES
  Editorial, production,
   development and
   technology                181,734      391,503       68,412      108,727
  Selling, general and
   administrative          2,579,142    1,839,990      882,951      639,012
  Payroll and benefits     1,338,777    1,619,487      439,990      368,904
  Depreciation and
   amortization               58,899      113,032       16,811       37,868
                         -----------  -----------  -----------  -----------

   Total operating costs
    and expenses           4,158,552    3,964,012    1,408,164    1,154,511
                         -----------  -----------  -----------  -----------

   Loss from operations   (3,835,107)  (3,534,930)  (1,268,180)  (1,058,476)
                         -----------  -----------  -----------  -----------


EARNINGS (LOSSES) OF
 UNCONSOLIDATED
 INVESTEES
  Equity in earnings
   (losses) of
   unconsolidated
   investees                     108     (141,851)         400     (159,665)
  Impairment loss                  -   (3,600,000)           -   (3,600,000)
                         -----------  -----------  -----------  -----------
  Total equity in
   earnings (losses) of
   unconsolidated
   investees                     108   (3,741,851)         400   (3,759,665)
                         -----------  -----------  -----------  -----------

OTHER INCOME
  Interest, net            1,175,044      777,411      201,197      264,400
  Accretion of discount,
   net of allowance for
   uncollectability        1,468,757            -      218,384            -
  Other, net               9,297,426    1,108,312    9,245,302    1,109,986
                         -----------  -----------  -----------  -----------
   Total other income     11,941,227    1,885,723    9,664,883    1,374,386
                         -----------  -----------  -----------  -----------

   Income (loss) from
    continuing
    operations before
    income taxes           8,106,228   (5,391,058)   8,397,103   (3,443,755)
   Income tax (expense)
    benefit                 (226,848)   1,498,482     (186,011)   1,127,612
                         -----------  -----------  -----------  -----------
     Income (loss) from
      continuing
      operations           7,879,380   (3,892,576)   8,211,092   (2,316,143)
                         -----------  -----------  -----------  -----------

   Gain on sale of
    discontinued
    operations, net of
    income taxes                   -    2,444,891            -    1,839,788
   Income from
    discontinued
    operations                     -       22,584            -            -
                         -----------  -----------  -----------  -----------

   Income from
    discontinued
    operations                     -    2,467,475            -    1,839,788
                         -----------  -----------  -----------  -----------

   Net income (loss)     $ 7,879,380  $(1,425,101) $ 8,211,092  $  (476,355)
                         -----------  -----------  -----------  -----------


Basic and diluted income
 (loss) per common share
  Continuing operations  $      0.35  $     (0.17) $      0.36  $     (0.10)
  Discontinued
   operations                      -         0.11            -         0.08
                         -----------  -----------  -----------  -----------
  Total basic and
   diluted net income
   (loss) per share      $      0.35  $     (0.06) $      0.36  $     (0.02)
                         ===========  ===========  ===========  ===========

Weighted average common
 and common equivalent
 shares outstanding -
 basic and diluted        22,688,135   23,179,066   22,640,966   23,179,066
                         ===========  ===========  ===========  ===========



Source: Hollywood Media Corp.

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