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February 28, 2002 – Los Angeles, CA -- Federal Hill Communications has signed an exclusive agreement with global animation producer BKN International AG (BKN), to license and distribute over 350 half-hours of children’s programming to Video On Demand (VOD) providers throughout the US and Canada, it was announced today by Bethany Gorfine, Federal Hill’s founder and president. The deal earmarks BKN’s content entrée into the North American VOD marketplace.

"We are extremely pleased to be able to make available BKN’s animated programming to our clients. The product offers a versatile viewing platform with proven track record in capturing and entertaining the young audience," said Gorfine. "Our relationship with BKN now offers them another broadcast venue in which, we are confident, will create an ancillary revenue stream."

"We value our relationship with Federal Hill," states Anthony Temple, Managing Director, BKN Consumer Products, Ltd. "Their expertise in this emerging medium will greatly help us rapidly expand our reach beyond broadcast TV."

Encompassing genres of action/adventure and comedy, the BKN roster includes nine series and three one-hour holiday specials. All target kids 4-14 and have a strong emphasis on the desirable 6-12 demographic. The available series include Extreme Dinosaurs (52 half-hours), Pocket Dragon Adventures (52 half-hours), Kong: The Animated Series (43 half-hours) Roswell Conspiracies: Alien, Myths and Legends (40 half-hours), The Lost Continent (26 half-hours), Skysurfer Strikeforce (26 half-hours), King Arthur and the Knights of Justice (26 half-hours), Capertown Cops (26 half-hours) and Princess Gwenevere and the Jewel Riders (26 half-hours). The one-hour holiday specials include Nick and Noel, Dot and Spot, and The Bear Who Saved Christmas.

Today’s announcement follows on the heels of the recent Federal Hill/Tele Images International announcement last month in which Federal Hill garnered exclusive representation and distribution rights to Tele Images award-winning programming in the genres of telefilms, miniseries, science, nature, history and civilization documentaries, biographies, culinary lifestyle and children’s animated programming. The deal marked the first time that the Tele Images library has been made available to the North American VOD broadcasting segment.

About BKNI
BKN International AG is a leading content provider for kids, specializing in the production, distribution, licensing and marketing of animated programming. The first European animation company with a worldwide reach, BKN operates production facilities in Europe and the USA, developing high-quality animation for the global market. The company has built a successful business within the kids entertainment industry, selling programming to over 80 countries and dubbing in more than 30 languages.

BKN is located in the heart of its largest markets and close to its strategic partners. The company is headquartered in Cologne, Germany with production studios in Los Angeles and Arles, France. BKN’s television distribution and marketing activities operate out of Paris and Los Angeles and the company’s consumer products division is headquartered in London with offices in New York and Paris. BKN is listed on the Neuer Markt, part of Germany’s Frankfurt Stock Exchange.

About Federal Hill Communications
Established in 1993, Federal Hill Communications is an independent international firm specializing in the licensing and delivery of digital entertainment for the Video on Demand (VOD) industry. The company is known for its forward thinking and hands-on expertise in the burgeoning VOD sector. Federal Hill Communications’ clients include Technology companies, Systems Integrators, Cable Operators, Hotels and Telephone Companies worldwide. For more information about Federal Hill Communications, visit www.fedhill.com.