InternetStudios Announces Completion of Acquisition and Roll-Out of DVD Titles

InternetStudios (OTCBB:ISTO) announced March 6th that it has finalized its agreement to acquire a film library of over 1500 classic movies from Trocadero Films and Dominique Bigle.

SANTA MONICA, Calif.--(BUSINESS WIRE)--March 6, 2003-- InternetStudios (OTCBB:ISTO - News) announced today that it has finalized its agreement to acquire a film library of over 1500 classic movies from Trocadero Films and Dominique Bigle. Included with the Trocadero Library are classic feature length motion pictures, rare and restored footage, newsreel collections, and archival material. The Company and Mr. Bigle intend to market and exploit the library in Remakes, Television, Video on Demand and DVD markets on a worldwide basis. The initial exploitation of the titles will be focused on the burgeoning DVD market. This will mark the first milestone in ISTO's plan to quickly build a niche-oriented DVD releasing and merchandising company focused on Hollywood's classic era.

The Trocadero library is comprised of timeless classics spanning a variety of genres including: Westerns, Musicals, Film Noir, Romance, Horror and Sci-Fi featuring such famous and glamorous stars as Randolph Scott, John Wayne, Marlon Brando, Fred Astaire, Frank Sinatra, Barbara Stanwick, George Raft, Danny Kaye, Jimmy Stewart, Errol Flynn and many more.

These films are perfect for taking advantage of the booming DVD market and the trend towards nostalgia. It is now clear that DVD sales have become Hollywood's cash cow, and ISTO plans to capture a share of this rapidly growing market. Just as record buyers embraced the music CD format twenty years ago, movie viewers around the world have fallen in love with the DVD, purchasing some 491 million DVD units in 2002. The DVD format for movies has experienced unprecedented popularity and has driven a global swell of consumer demand for movies on disk, both for new releases and for older catalog titles. Industry analysts expect that DVD sales will exceed 681 million units in 2003, a 39% increase over 2002 levels. All together, domestic DVD revenues reached $8.4 billion in 2002. Consumers now average roughly sixteen DVD purchases each year to build their collections.

Amid this surge of consumer spending niche opportunities abound, and Internet Studios is positioned to profitably exploit them. Through the acquisition of the Trocadero Films library, the Company will own the necessary brand, library, and film exploitation rights to establish itself as the leading "classic Hollywood" film company for DVD collectors.

Mr. Bigle has already commenced the packaging of these titles into attractive "6-packs" of DVDs in the following configurations: The Detective and Film Noir, Monsters, Sci-Fi, Westerns, Romance and Foreign Classics Collections. Each DVD box set will feature exclusive bonuses such as documentaries, newsreels, cartoons, vintage commercials and original theatrical trailers.

Mr. Bigle has now joined the InternetStudios management team to oversee the marketing of these DVD titles. Mr. Bigle's resume includes over 15 years at the Walt Disney Company, as Senior Vice President, Europe and Middle East. Bigle also successfully launched the Walt Disney and Buena Vista Home Video labels in all of the European markets and eventually produced several Disney television franchises such as the Disney Channel Show and received Le 7 d'Or, the equivalent in France to an Emmy Award. In addition, Mr. Bigle was the founder of United Communications, where he successfully acquired the television rights for 50 titles from Columbia Pictures as well as the entire MGM/UA library for the French-speaking territories. United Communications also signed exclusive agency rights for the licensing of 20th Century Fox characters, including The Simpson's and signed over 200 licensing agreements based on Steven Spielberg's Jurassic Park. Bigle sold the company to UGC/General des Eaux (Vivendi) in 1994.

In the late 90's, Bigle headed up Film Office, France's largest Home Video distribution company at the time. He also produced a number of successful and prestigious series for French Television.

Robert Maclean, Chairman of InternetStudios commented: "We are thrilled to be working with Dominique and we look forward to creating an exciting new brand of Classic DVD product from the golden age of Hollywood and as well as Classic European films. These great films edited along with other unique material will appeal not only to film enthusiasts everywhere but also to a whole new generation of consumers. We are busy preparing to introduce our first selected titles, which we want to have in the stores by August. All these titles will also be available on-line, of course."

Internet Studios is an emerging Entertainment Media Company that is focused on acquiring undervalued assets to exploit through its proprietary online platform and traditional marketing capabilities.

Investor Communications 1-888-784-6166 ext.1 or email ir@internetstudios.com

Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.

--------------------------------------------------------------------------------

Contact:

     InternetStudios
     John Kirk, 888/784-6166 Ext. 1
     ir@internetstudios.com