Mr. Derik Murray reports

NETWORK ENTERTAINMENT ANNOUNCES RECORD RESULTS AND POSITIVE EARNINGS FOR Q1 2016

The activities of Network Media Group Inc.'s subsidiary, Network Entertainment Inc., for the three months ended Feb. 29, 2016, have generated for the company positive net income of $586,114 (one cent per share), compared with a net loss of $188,318 (nil per share) for 2015. The first quarter 2016 results are reflective of the most successful three months of operations in the company's history. The highlights of the quarter are:

• Record quarterly revenues of over $2.6-million;
• Gross profit of $872,000;
• Working capital improvement of $935,000;
• Income increase of $774,000 over first quarter 2015.

The company's unaudited condensed interim consolidated financial statements for Feb. 29, 2016, and Feb. 28, 2015, are available on SEDAR under the company's profile.

The positive results in first quarter 2016 are directly attributable to the continued high levels of production that Network has experienced over the last four quarters. It released one television series, The Cowboy, and continued production on two other projects, including a seven-part docu-series.

Chief executive officer Derik Murray commented: "In 2015, we felt the tides start to turn for us as a company. Activity and interest in our productions increased dramatically, and we are seeing the results translated into our financials. We had an amazing close to our fiscal year last year, and now see a terrific start to fiscal 2016. The activity and interest have not slowed down for us, and we are expecting this trend to continue. I am very proud of how our team has performed and the quality of the properties we are able to produce."

A more detailed analysis of the other components of the company's performance can be found in its management's discussion and analysis as filed on SEDAR.

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