Mr. Robert Pirooz reports

NETWORK ENTERTAINMENT ANNOUNCES SECOND CONSECUTIVE POSITIVE QUARTERLY EARNINGS RESULTS AND OPTION GRANTS

The production activities carried out through Network Media Group Inc.'s subsidiary, Network Entertainment Inc., have garnered per-share net income of one cent for the second fiscal quarter ended May 31, 2016.

The company reported net income of $395,905 and $982,019 (one cent and two cents per share) for the three- and six-month periods ended May 31, 2016, compared with a net loss of $147,499 and $335,817 (nil and one cent per share) for the respective periods in 2015. These results extend the record financial trend enjoyed by the company over the last four financial quarters. The highlights of the second quarter of fiscal 2016 are:

• Three- and six-month revenues of approximately $3-million and $5.6-million;
• Three- and six-month gross profits of $705,000 and $1,578,000;
• Working capital improvement of $1,258,000 from Nov. 30, 2015;
• Three- and six-month income increase of $543,000 and $1,318,000 over the second quarter of 2015.

The company's unaudited condensed interim consolidated financial statements for May 31, 2016, and 2015 are available on SEDAR under the company's profile.

The positive results are directly attributable to Network's continued high levels of production over the first six months of fiscal 2016, during which it released one television series, The Cowboy, and continued production on two other projects, including a seven-part docu-series.

Chairman Robert Pirooz said: "Our second quarter results are a continuation of the momentum we have been creating over the last year. The company is functioning at an unprecedented level. The board of directors and senior management are proud of how far the company has come. Fiscal 2016 is becoming a year where Network has taken itself to the next level of production and results."

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.

The company also announces that it has granted incentive stock options to its directors, officers and employees for the right to purchase up to a total of 886,243 common shares of the company. These options are exercisable at a price of 20 cents per share, for a term of five years, and vest in tranches over a period of two years. The terms of the options granted are in accordance with the company's share option plan approved by shareholders on June 9, 2016.

The option grants are subject to TSX Venture Exchange approval.

We seek Safe Harbor.