MoviePass™ and MoviePass Films Announce New Strategic Direction

MoviePass Refocuses its Business Model to No Longer Depend on
Revenues from Studios and Exhibitors

NEW YORK–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24AAPL&src=ctag” target=”_blank”gt;$AAPLlt;/agt; lt;a href=”https://twitter.com/hashtag/Gambinocrimefamily?src=hash” target=”_blank”gt;#Gambinocrimefamilylt;/agt;–Following the previously announced intention to create a vertically
integrated film production and exhibition company called MoviePass
Entertainment Holdings Inc., MoviePass and MoviePass Films announced
their new business strategy going forward.


MoviePass and MoviePass Films plan to implement a new business model
that prioritizes self-generated revenues without dependence on studios
or exhibitors, to build more reliable revenue streams.


The future growth of the MoviePass group of companies will require us
to take advantage of the rapidly evolving media landscape. To maximize
our audience reach, we plan to focus on technological innovation and
high-quality content production through our three key channels –
MoviePass (theatrical subscription service); MoviePass Films (original
content production company) and Moviefone (multimedia media information
and advertising service).


Below are the highlights of our strategic vision:


Our new business model no longer depends on achieving revenues from
studios or exhibitors to succeed, but instead will prioritize the
economic relationship among our MoviePass subscription service,
MoviePass Films production business and Moviefone multimedia media
information and advertising service.


We believe the MoviePass subscription service will enhance box office
results of MoviePass Films productions, and that revenues from our
MoviePass Films productions will help fuel an expansion of our
MoviePass subscription service, with the Moviefone multimedia media
information and advertising service supporting the entire group of
MoviePass companies.


By seeking to generate new revenues and profit centers within our own
ecosystem, we believe we can accelerate our overall growth in the U.S.
market.


MoviePass, MoviePass Films, and Moviefone plan to work together in a
much more interconnected fashion and share resources across each
company.


MoviePass Films will seek to optimize its platform to accelerate
content production for theatrical release as well as expand
distribution deals for in-home video, and retail, transactional and
international sales.


We believe this new model will enable us to increase our revenue per
MoviePass subscriber.


We also believe this new model will significantly enhance our
subscriber satisfaction and retention by enabling us to increase
inventory on the MoviePass subscription service, thereby providing a
more consistent subscriber experience for the casual moviegoer.


We remain committed to offering a wide inventory of movies and
enhanced box office results for our industry partners.


Our strategy will also focus on technology development, building
stronger deterrents to prevent violations of the MoviePass terms of
use that are costly to us and damaging to the MoviePass community of
casual moviegoers.


“By spending the last several months analyzing the many different
aspects of our prior business model, in terms of what worked and what
didn’t, I believe we’ve been able to illuminate the path forward. We’ve
taken a deep dive to understand our unique ecosystem and I believe we’re
now ready to move forward at a rapid pace. I see this as an exciting
time for MoviePass and its sister companies, because we’re taking our
original vision for subscription, altering it for the better, and
proceeding with significant clarity,” said Ted Farnsworth, CEO of
MoviePass’ parent company, Helios and Matheson Analytics Inc.


“We have gained a tremendous amount of insight into moviegoers and the
industry over this past year and a half. MoviePass subscription,
MoviePass Films and Moviefone now have a winning combination that we
believe will drive consumers to our films, and re-energize casual
moviegoers to go more often and see great films in local theaters –
films that consumers often wait to see much later through streaming
services,” Mitch Lowe, CEO of MoviePass.


“We always believed in the MoviePass value proposition for filmmakers.
Now, after witnessing how MoviePass subscribers can positively impact
box office results of our own movies, I must say the opportunity of this
partnership is bigger than I ever thought it would be,” said Randall
Emmet, Co-CEO of MoviePass Films. “At the end of the day, we believe we
will be getting people back in movie theater seats, this time to the
benefit of our companies and the MoviePass community of casual
moviegoers. That’s exciting and certainly a game-changer,” concluded Mr.
Emmett.


About MoviePass Inc.


MoviePass Inc. (“MoviePass”) is a marketing technology platform
enhancing the exploration of film and the moviegoing experience. As a
premier movie-theater subscription service, MoviePass provides film
enthusiasts the ability to attend select new movies in theaters. The
service is now accepted at theaters everywhere in the U.S. Visit us at moviepass.com.


About MoviePass Films:


MoviePass Films LLC (“MoviePass Films”) is dedicated to supporting
independent filmmakers and distributors by collaborating with creatives,
co-acquiring equity stakes in films and offering them enhanced
performance in the theatrical window. A joint venture of Helios and
Matheson Analytics Inc. and Emmett Furla Oasis (EFO) Films, MoviePass
Films focuses on studio-driven content and new film production for
theatrical release and other distribution channels, with the goal of
democratizing the film production experience by bridging the gap between
moviegoers and film industry endeavors.


About Helios and Matheson Analytics


Helios and Matheson Analytics Inc. (OTC:HMNY) (“Helios”) currently owns
approximately 92% of the outstanding shares (excluding options and
warrants) of MoviePass, a premier movie-theater subscription service,
100% of the outstanding equity interests of MoviePass Ventures LLC, and
51% of the outstanding equity interests of MoviePass Films. Helios also
owns Moviefone, a multimedia media information and advertising service.
Helios’ holdings include RedZone Map, a safety and navigation app for
iOS and Android users, and a community-based ecosystem that features a
socially empowered safety map app that enhances mobile GPS navigation
using advanced proprietary technology. Helios is headquartered in New
York and quoted on the OTC Market under the symbol HMNY. For more
information, visit us at www.hmny.com.


About Emmett Furla Oasis Films:


Emmett Furla Oasis Films initially was founded in 1998 and was a
combination of Emmett’s extensive entertainment industry experience and
Furla’s business expertise. In 2013 a collaboration was finalized with
Oasis Ventures Entertainment. The success to date has been rooted in the
company’s ability to facilitate relationships between top creative
talent (including actors, writers, and directors) and companies who
produce, finance, and distribute motion pictures. To date, more than 80
films have been produced which include The Amityville Horror,
Rambo, 16 Blocks, End of Watch, Broken City, The Frozen Ground, Escape
Plan, 2 Guns and Lone Survivor.


Cautionary Statement on Forward-looking Information


Certain statements in this communication contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 or under Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (collectively, “forward-looking statements”) that may not be
based on historical fact, but instead relate to future events, including
without limitation statements containing the words “believe”, “may”,
“plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”
and similar expressions. All statements other than statements of
historical fact included in this communication are forward-looking
statements.


Such forward-looking statements are based on a number of assumptions.
Although Helios’ management believes that the assumptions made and
expectations represented by such statements are reasonable, there can be
no assurance that a forward-looking statement contained herein will
prove to be accurate. Actual results and developments may differ
significantly from those expressed or implied by the forward-looking
statements contained herein and even if such actual results and
developments are realized or substantially realized, there can be no
assurance that they will have the expected consequences or effects.
Some, but not all, of these risks include, among other things: our
capital requirements and whether or not we will be able to raise capital
as needed; whether our new subscription plan and business model will be
successful; our ability to successfully develop the business model of
MoviePass, Moviefone, and MoviePass Films; our ability to retain our
existing subscribers and market and sell our services to new subscribers
following the change in the subscription plan and business model; our
ability to integrate the operations of MoviePass, Moviefone, MoviePass
Films and MoviePass Ventures and other acquired businesses into our
operation; audience acceptance of the films and acquired content of
MoviePass Films; delays, cost overruns, cancellation or abandonment of
the completion or release of MoviePass Films’ films; failure of third
party distributors to distribute MoviePass Films’ films and their
failure to perform or promote such films; changes in consumer
discretionary spending; the inability of MoviePass, MoviePass Films and
Moviefone to compete effectively; Helios’ ability to fulfill its payment
obligations to MoviePass’ merchant processors in a timely manner to
prevent MoviePass service interruptions; changes in local, state or
federal regulations that will adversely affect Helios’ business;
consumer acceptance of the new uncapped MoviePass subscription plan; the
success of cost-reduction and subscription revenue increase measures;
the risk that increased monthly usage by MoviePass’ subscribers may
cause MoviePass to incur losses and negative cash flow; risk of attempts
at unauthorized or improper use of MoviePass’ services; the inability to
maintain or rebuild the value of the MoviePass brand; the inability to
successfully respond to rapid technological changes and alternative
forms of delivery or storage to remain competitive; the inability to
maintain relationships with program suppliers and vendors; the ability
of Moviefone to obtain advertising revenues; consumer acceptance of
Moviefone services; the ability of Moviefone to develop and offer
compelling content, products and services and attract new users or
maintain existing users; breaches of network and data security measures;
a disruption or failure of networks and information systems; the impact
of legal proceedings or governmental action against Helios and
MoviePass; whether Helios will continue to receive the services of
certain officers and directors; Helios’ ability to protect its and its
subsidiaries’ intellectual property and operate its businesses without
infringing upon the intellectual property rights of others; and the risk
factors described in Helios’ Annual Report on Form 10-K for the fiscal
year ended December 31, 2017, its quarterly reports on Form 10-Q for the
quarters ended March 31, 2018, June 30, 2018 and September 30, 2018,
including subsequent current and periodic reports, information
statements and registration statements filed with the U.S. Securities
and Exchange Commission. You are cautioned to review such reports and
other filings at www.sec.gov.


Given these risks, uncertainties and factors, you are cautioned not to
place undue reliance on such forward-looking statements and information,
which are qualified in their entirety by this cautionary statement. All
forward-looking statements and information made herein are based on
Helios’ current expectations and Helios does not undertake an obligation
to revise or update such forward-looking statements and information to
reflect subsequent events or circumstances, except as required by law.


Contacts

HMNY Contact:The Pollack PR Marketing GroupStephanie
Goldman/Mark Havenner, 310-556-4443sgoldman@ppmgcorp.com
/ mhavenner@ppmgcorp.com