Mr. Derik Murray reports

NETWORK MEDIA GROUP ANNOUNCES RESULTS FOR THIRD QUARTER ENDED AUGUST 31, 2016

Network Media Group Inc. has released its financial results for the three- and nine-month periods ended Aug. 31, 2016, which yielded year-to-date record revenues that continue the trend of positive results largely attributable to the company's expanded relationships with major U.S. broadcast networks and distributors.

Network enjoyed revenues of $7.6-million for the nine-month period ended Aug. 31, 2016, and approximately $2-million for the third quarter of 2016, and reports the following additional highlights:

• Launched first two series productions, both for major broadcasters, in the past year;
• Gross profits of $409,000 for the third quarter and $1,987,000 for the nine-month period;
• Working capital improvement of $1,549,749 from Nov. 30, 2015;
• Increased net income for the third quarter of $95,295 and for the nine-month period of $1,413,000.

The positive results are directly attributable to Network's continued high levels of production over the first nine months of fiscal 2016, in which it released two television specials, The Cowboy and I Am JFK Jr., and continued production on a seven-part Facing series.

Chief operating officer Paul Gertz stated: "In the past year, Network has been rewarded for its investment in building and expanding upon its relationships with major U.S. broadcast networks, resulting in the production of our Facing series for National Geographic and The Cowboy for the Discovery networks. As a result of our investment in these first two series productions throughout the past year, we have built an efficient production pipeline that we plan to leverage for successive seasons."

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

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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