HALLMARK CHANNEL CONTINUES DISTRIBUTION GROWTH WITH LAUNCHES IN KEY MARKETS: PHILADELPHIA, DETROIT, WASHINGTON, DC AND CLEVELAND LEAD THE WAY

Additional Launches Include Systems in Florida, Delaware, New Mexico and Indiana

Hallmark Channel announced today it has launched on Comcast, Time Warner and NCTC systems, serving markets such as Philadelphia, PA, Detroit, MI, Cleveland, OH, Tallahassee, FL, Rockville, MD, New Castle, DE, Delaware County, PA, Santa Fe, NM, Del Rio, TX, Hattiesburg, MS and Evansville, IN. The new launches bring Hallmark Channel�s total distribution to more than 64 million subscribers. The announcement was made by Janice Arouh, Senior Vice President of Network Distribution and Service for Hallmark Channel.

The new launches are particularly significant in Philadelphia, the Washington, DC area, Detroit, Baltimore and Tallahassee because Hallmark Channel is now substantially distributed in these markets. The network also experienced growth in 2004 with increased DirecTV and Echostar subscribers as well as cable system launches in Los Angeles, CA, Tucson, AZ, Tulsa, OK, Little Rock, AR and Savannah, GA, among others.

�The success we�ve had with distribution growth and ratings this year proves the value our programming provides our affiliate partners and their subscribers,� stated Arouh. �With the upcoming debut of �JAG� and �Walker, Texas Ranger� and the arrival of the holiday season, our most highly rated time of year, we�re poised to continue with strong growth across-the-board through the end of the year and beyond.�

Hallmark Channel is a 24-hour basic cable channel that provides high-quality, entertainment programming to a national audience of more than 64 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 115 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 visit hallmarkchannel.com and hallmarkmoviechannel.com.