Crown Media Holdings Prices Private Offering of $300 Million of 10.5% Senior Notes Due 2019

Crown Media Holdings, Inc., announced today the pricing of its before announced offering in a private placement of $300 million in aggregate principal amount of 10.5% senior notes due 2019. The Notes will have an interest rate of 10.5% per annum and will be issued at a price equal to 100 % of their face value. The Notes will be senior unsecured obligations of Crown Media and will be guaranteed by each of Crown Media's subsidiaries. The sale of the Notes is expected to close on July 14, 2011, subject to customary closing conditions and subject to the entry by Crown Media into new senior secured credit facilities as before announced.

Crown Media Holdings, Inc. is the corporate parent for the portfolio of cable networks and related businesses in accordance with Crown Media Networks. The Company currently operates and distributes Hallmark Channel in both high definition and standard definition to 87.5 million subscribers in the U.S. Hallmark Channel is the nation's leading network in providing quality family programming with an ambitious slate of original TV movies and general entertainment, and is the home of The Martha Stewart Show and other home and lifestyle content. Hallmark Channel's sibling network is Hallmark Movie Channel, as well available in HD and SD, distributed to more than 41 million homes and one of America's fastest-growing cable networks. Hallmark Movie Channel provides family-friendly movies with a mix of classic theatrical films, presentations from the acclaimed Hallmark Hall of Fame library, original Hallmark Channel movies and special events. To boot, Crown Media Networks as well includes the online offerings of HallmarkChannel.com and HallmarkMovieChannel.com

INDUSTRY KEYWORDS: Entertainment Licensing TV and Radio Research Telecommunications Film & Motion Pictures General Entertainment