Networks North Inc. Announces the Strategic Acquisition of a Technology Based Entertainment Operation with $7,000,000 in Annual Revenue.

NASDAQ:NETN

TORONTO, Sept. 14 /CNW-PRN/ - Networks North Inc. (NASDAQ: NETN) is pleased to announce the purchase, through a wholly owned subsidiary, of the assets, right, title and interest of GalaVu Entertainment Inc.

GalaVu is a technology-based entertainment provider of interactive in-room entertainment systems to hotels and holds a leading position in the Canadian market for the small and mid-sized hotel segment. For it's current fiscal year ending September 30, 1999, GalaVu was on track to generate in excess of $7,000,000 CDN and has reported a positive EBITDA of $207,000 for the three months ended June 30, 1999 and has reported positive EBITDA for the last two consecutive quarters.

Consideration for the purchase includes 100,000 common shares of Networks North Inc. and a sharing of future cash flows of the operations of GalaVu over the next five years with a minimum guarantee of $3,300,000 by our newly formed subsidiary.

``This is certainly a strategic acquisition for our company,'' stated Peter Rona, President and Chief Executive Officer of Networks North Inc., ``we currently are the leaders in interactive entertainment in Canada servicing more than 525 hospitality sites with our NTN Network. The operations of GalaVu are very similar to our current activities and we will be able to capitalize on the synergies of the combined entities.''

Working closely with GalaVu's team of hardware and software specialists, plans are to integrate the NTN content into the current hotel offerings. Tests of this concept have already been conducted successfully. Further synergies will be realized in the areas such as customer service, maintenance, and repairs as divisions of Networks North and GalaVu perform similar functions.

``The addition of $7,000,000 of revenue to Networks North Inc. will be an increase of almost 50% compared to last year's reported revenue of $14,772,000,'' continued Peter Rona, ``and this is consistent with our strategic plan to grow our business both internally and through acquisition.''

GalaVu's interactive system is based on proprietary technology and provides a wide range of affordable, in-room entertainment packages. Marketed to guests under the Round-the-Clock Entertainment brand, GalaVu's suite of products include Hollywood movies on demand, premium television programming, and other information and entertainment services designed to enhance the stay of hotel guests while generating revenue for GalaVu and its hotel partners. The system utilizes a variety of technologies to provide one of the industry's widest selections of value-priced entertainment packages.

Networks North Inc.'s operating units include wholly owned NTN Interactive Network Inc. (NTNIN), Magic Lantern Communications Ltd. and Interlynx Multimedia Inc. NTNIN is the exclusive Canadian Licensee of NTN Communications, Inc. (AMEX:NTN), a leading producer and programmer of interactive television, on-line and Internet entertainment. The NTN Entertainment Network distributes programming to more than 15 million participants per month at restaurants, sports bars, and other group viewing locations throughout North America, including 525 in Canada with over 2.5 million participants. Magic Lantern is Canada's premier distributor of educational media resources, with exclusive rights to over 14,000 titles in English and French. Magic's subsidiaries provide MPEG encoding, video duplication, distribution and fulfillment services for broadcasters. Interlynx Multimedia Inc. is a developer of web-based interactive software in the areas of training, knowledge management, and e-business.

Financial Statements in this press release other than historical facts are ``forward looking'' statements within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements (future operational results and sales) involve risk and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.