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NTN Reports Q3 Results

NTN reported revenues of $5.7 million for the quarter ended September 30, 2000, compared with revenues of $5.9 million for the third quarter of 1999.

Revenue declines for the third quarter 2000 compared with the third quarter 1999 are primarily attributable to the discontinuation of approximately $250,000 in fees from America Online and the Company's former subsidiary, IWN, Inc., that have been phased out. The declines are also partially attributable to a decrease in installation fees for The NTN Network, as the Network is now 83% converted from DOS-based systems to DITV systems.

The number of NTN Network sites at September 30, 2000 of 2,906 represents an increase of approximately 100 compared with September 30, 1999. These declines were partially offset by a $222,000 increase in advertising revenues generated by both The NTN Network and BUZZTIME divisions for the current period over last year.

Total operating expenses decreased 10% to $6.6 million for the third quarter 2000 from $7.4 million in the same period of 1999. This overall reduction was achieved despite a significant increase in operating expenses in the third quarter 2000 related to the BUZZTIME division. The reduction is primarily attributable to lower installation costs, lower repair and servicing costs associated with the Company's DITV system, and to lower depreciation costs.

``We are very pleased with the results of our third quarter operations,'' said Stanley B. Kinsey, Chairman and Chief Executive Officer of NTN Communications. ``As a result of streamlined operations, the NTN Network shows dramatically improved results. In addition, the Network will soon deliver additional content and services to hospitality locations via broadband connectivity, increasing revenue opportunities.

``We also anticipate that the investments we have made in BUZZTIME will soon deliver positive returns to shareholders. We continue to position BUZZTIME as the leading programmer of interactive sports games and trivia game shows on all interactive platforms. With the growing penetration of Interactive Television initiatives (iTV) by the major cable companies, BUZZTIME is placing increasing emphasis on becoming a major iTV programmer.

Going forward, the Company will continue to aggressively pursue these iTV opportunities. We have successfully launched the BUZZTIME channel on both WebTV and AOLTV this past quarter and continue development for AT&T Broadband's cable roll-out, giving BUZZTIME premium positioning on three major iTV initiatives. According to WebTV, in just the first eight weeks of availability, BUZZTIME has become one of the most visited content areas on their WebTV service.

``Finally, distribution agreements with FoxSports.com, WebTV, NHL.com and others continue to drive player registrations to BUZZTIME.com. The recent announcement of Yahoo! as the newest BUZZTIME distribution partner is expected to further increase registrations and awareness of the BUZZTIME trivia brand. In addition to iTV and Internet initiatives, the Company is pursuing a growing demand for content by wireless providers. We plan to continue to develop strategic partnerships to extend the BUZZTIME audience,'' said Mr. Kinsey.

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