Crown Media Cuts 130 Jobs

Posted on October 11, 2002

Crown Media Holdings, which operates and distributes the Hallmark Channel, announced that it is undertaking a major restructuring of the operation of its channels broadcast in the U.S. and in over 110 international markets in order to concentrate its efforts on the U.S. market and its most successful international territories. On completion of the restructuring in the first quarter of 2003, Crown Media expects a net reduction in its workforce of approximately 30% or 130 positions.

The Company intends to implement this restructuring internationally by eliminating centralized oversight and non-technical support functions currently located in the Company's offices in Denver, Los Angeles, New York and Miami. Decentralization will occur in two ways. In the offices overseeing Europe, the Middle East and Africa and Asia Pacific, regional staff will assume responsibility for localized programming, acquisitions, marketing and advertising sales. In Latin America, the Company plans to enter into a strategic alliance with a local distribution partner who, under Crown Media's direction, will manage the Company's operations in this region. Crown Media will continue to distribute the Hallmark Channel which has a global subscriber base of over 95 million homes.

"In response to the realities of today's international marketplace, we must focus on those regions where our channel has met with the greatest success, allowing us to maximize subscriber fee and advertising revenue growth" stated David Evans, President and CEO of Crown Media.