FIVE ADVERTISERS ENROLL IN HALLMARK CHANNEL�S BACK-TO-SCHOOL VIGNETTE CAMPAIGN

Staples, Kohl�s, Subaru, Dairy Management and Interstate Brands (Wonderbread) Participate in Seasonal Vignettes for Kids and Kids at Heart

Hallmark Channel announced today that five advertisers have signed on to sponsor themed vignettes to run on the family-friendly network during the back-toschool season. Staples, Kohl�s, Subaru, Dairy Management and Interstate Brands� Wonderbread will sponsor the vignettes, which take on a 1970s feel with a series of classic first-day-of-school photographs set to music. The promotion marks Hallmark Channel�s first back-to-school seasonal campaign.

The funny, and often �frightening,� set of images remind viewers of their backto- school days and what it was like trying just a little too hard to be hip on that first day back from summer vacation. Images include a teen with a mullet, butterfly collar and white polyester bellbottom pants, and a young boy in tube socks, bowl cut and Starsky & Hutch lunch box. A voice-over explains that the images are being presented as a friendly reminder for parents to dress their kids �responsibly� and to shop �responsibly� during the back-to-school season. Each spot is �brought to you by� one of the five sponsors.

�This campaign is in keeping with the mission of our Sponsorship Solutions Unit to create unique and tailored environments for our advertisers,� said Bill Abbott, Hallmark Channel�s executive vice president, national ad sales. �Our goal is to help advertisers break through commercial clutter to allow their messages to stand out and back-to-school makes complete sense for us since Hallmark Channel reaches such a loyal audience.�

Hallmark Channel is a 24-hour basic cable channel that provides high-quality, entertainment programming to a national audience of 62 million subscribers. The program service is distributed through nearly 4,500 cable systems and communities and direct-to-home satellite services across the country. Crown Media Holdings, Inc. (NASDAQ: CRWN) owns and operates Hallmark Channel, which, in addition to the U.S., is distributed worldwide to more than 122 countries. The combined channels reach more than 116 million subscribers globally. In January 2004, Crown launched its first digital service, the Hallmark Movie Channel, which is its second 24-hour linear channel. Through its subsidiary, Crown Media Distribution, LLC, Crown also distributes awardwinning titles from the Hallmark Entertainment collection for exhibition in a variety of television media including Video-on-Demand and High Definition Television.

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For more information please visit hallmarkchannel.com or hallmarkmoviechannel.com.