HTVN Receives Strategic Investment.

Hispanic Television Network, Inc. announced that it has entered into a strategic relationship with C-Networks.

C-Networks, a media company with interests in Latin America has entered into a strategic investment with HTVN to provide capital and media expertise for expansion of HTVN’s strategy in the United States and Latin America.

“C-Networks brings strategic capital needed for completion of the business plan. This agreement provides for capital contributions through 2001 that would insure funding to profitability,” said James A. Ryffel, HTVN Chairman and Interim CEO.

“We believe the relationship will provide us with the ability to accelerate and expand our business model in the U.S. and Latin America,” Ryffel added. “This is the beginning of a long-term relationship which we hope to expand on in the future. The relationship will shore up our balance sheet, provide capital and expertise which will allow us to pursue major financing alternatives we put on hold earlier in the year.”

As part of the financing, HTVN will welcome Emilio Gorriti, President and CEO of C-Networks to the Board of Directors of the company.

The relationship and agreement was fostered and made possible through lengthy negotiations for the strategic investment that required the sacrifice and commitment by major founding shareholders.

Ryffel initiated by example in the returning of 75% of his and Woodcrest Capital’s shares to the company for the purposes of attracting this strategic capital investment. This was quickly followed by Mr. and Mrs. P. Alan Luckett, Mr. Bob J. Bryant, and Mr. Don Sallee returning approximately 75% of their shares. In total, approximately 35 million shares were returned to the company to attract this and future strategic investments at the discretion of the Board of Directors.

“It was our intent to attract a strategic investor with media expertise while protecting the shareholder value of the company. By returning shares to the company, the shareholders would not be subject to the otherwise dilutive effects of the investment,” said Ryffel.

“These actions by Ryffel show unprecedented leadership and commitment to the company,” said Emilio Gorriti of C-Networks. “I look forward to working closely with HTVN to ensure the success and profitability of the company. This is an incredible opportunity and we feel we can help move the company forward and accelerate the business plan.”

As a result, HTVN’s lender group agreed to restructure and extend its bridge loan to the company for up to one year, contingent on the satisfaction of certain conditions. Other terms favorable for strategic investors include, but are not limited to the cancellation of up to 80% of the warrants that were associated with the underlying debt transaction.

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