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About New Frontier Media
New Frontier Media, Inc. is a leader in transactional television as well as general motion picture entertainment. The Company delivers transactional adult-themed pay-per-view networks to cable and satellite operators across the United States. Additionally, the Company is a leading provider of content to video-on-demand platforms on cable and satellite. The Company's programming originates at New Frontier Media's state of the art digital broadcast infrastructure in Boulder, Colorado. The Company owns thousands of hours of digital content and partners with movie studios to bring together the most exciting variety of transactional adult entertainment available today.

New Frontier Media's Film Production segment produces original motion pictures that are distributed in the U.S. on premium movie channels, such as Cinemax and Showtime and internationally on similar services. The Film Production segment also develops and produces exciting original event programming that is widely distributed on satellite and cable pay-per-view. MRG Entertainment's Lightning Entertainment unit represents the work of a full range of independent film producers in markets in every corner of the globe.

Transactional TV Segment
The Transactional TV segment distributes branded adult television programming to cable and satellite television companies. The content is distributed to nearly every television household in the United States. Pay-per-view and video-on-demand programming competes well with other forms of entertainment because it is offered conveniently in the comfort of user's homes, is high quality, and at a reasonable price point.


Film Production Segment
The Film Production segment is a multi-faceted film production and distribution company, which New Frontier Media, Inc. acquired in February 2006 to expand its portfolio to the rapidly growing and higher margin market for less explicit erotic content. This acquisition also provides established relationships in international markets.


Direct to Consumer Segment
The Direct-to-Consumer segment derives revenue primarily through subscriptions to its consumer websites. Traffic to its consumer websites is primarily derived through either a targeted network of affiliates that earn a referral fee when diverted traffic converts into paying members, or "type-in" traffic in which users navigate directly to the sites by typing the addresses into their web browsers.