NO MYSTERY HERE� HALLMARK CHANNEL ACHIEVES RATINGS HIGHS IN SECOND QUARTER 2005

Original Movies Boost Hallmark Channel To A Top 10 In Total Day For June, Its Highest June And Highest 2nd Quarter Ever

Continued Ratings Success Leads to Hallmark Channel�s 8th Straight Monthly Top 10 Total Day HH Ranking

Network Also A Top 10 Cable Network In Year-to-Year Growth For Total Day (#6) And Prime Time (#8)

Hallmark Channel continues to roll achieving its highest 2nd Quarter ratings ever, its highest June in network history, and maintaining its Top 10 ranking in Total Day.

Original movies helped boost the network to its 8th straight monthly Top 10 Total Day household ranking. Competitively, in June, Hallmark Channel ranked #9 in Total Day HH rating (.7, tied with MTV), which was a 40% increase over June �04�s .5 HH rating, and it delivered 474,000 homes, a +44% increase over June �04. This is the highest-rated June in network history. Prime Time was at a 1.1 HH rating for the month with a +38% increase over June �04�s .8 HH rating and the 2nd highest monthly HH rating in network history, among all 59 ad-supported cable network (Nielsen Media Research, 5/30-6/26/05 compared to 5/31-6/27/04). Hallmark Channel�s Prime Time rating inched closer to a Top 10 ranking as it ranked number 11 for the month of June.

Among key demos in Prime Time for June, the network delivered 351,000 A25-54, a +55% increase over June �04 and the 2nd highest monthly A25-54 in network history, and 207,000 W25-54, a +39% increase over June �04 and the 2nd highest monthly W25-54 in network history.

In Total Day for June, the network delivered 236,000 A25-54, a +49% increase over June �04 and 127,000 W25-54, a +37% increase over June �04.

Contributing to Hallmark Channel�s highest second quarter ever was its steady ratings growth year-to-year. Hallmark Channel tied an all-time high in Total Day with a .7 HH rating (a +17% increase over 2Q�04), and delivered 450,000 homes, a +34% increase over 2Q�04 and the 2nd highest quarterly HH delivery in network history. Also, the network delivered 220,000 A25-54, which is a +38% increase over 2Q�04, and the second highest quarterly A25-54 in network history, and 123,000 W25-54, a +32% increase over 2Q�04.

In Prime Time, Hallmark Channel achieved a +13% year-to-year growth over 2Q�04 with a .9 HH rating, and delivered 617,000 homes, making it a +28% increase over 2Q�04 and the 2nd highest quarterly HH delivery in network history. In addition, the network had 167,000 W25-54 (a +22% increase over 2Q�04), and 268,000 A25-54 (a +25% increase over 2Q�04). (Nielsen Media Research, 2Q�05 3/28-6/26/05 compared to 2Q�04 3/29-6/27/04.)

In 2Q�05, Hallmark Channel ranks #9 in Total Day HH rating (.7, tied with 1 other network) and #15 in Prime Time HH rating (.9, tied with 2 other networks).

The channel also continues to rank among the top 10 cable networks in year-to-year growth, 2Q�05 vs. 2Q�04, ranking #6 overall in Total Day growth for HH impressions (+34%), #8 for W25-54 (+32%), and #5 for A25-54 (+38%). It ranks #8 overall in Prime Time growth for HH impressions (+28%), #10 for W25-54 (+22%), and #8 for A25-54 (+25%) among the 59 ad-supported cable networks.

The continued ratings success of the Mystery Movie franchises and other Hallmark Channel Original movies played a big part in the overall ratings increases, especially the solid Mystery Movie delivery on Sunday nights. Following are highlights:

Second quarter 2005 featured the premiere of three new installments of the Hallmark Channel Mystery Movies series: McBride, starring John Larroquette, Jane Doe, starring Lea Thompson, and Mystery Woman, starring Kellie Martin.

The three Mystery Movies premieres averaged a 1.3 HH rating, and ranked among the Top 10 for HH rating (1.3, #6 ranking), W25-54 (.8, #5 ranking) and A25-54 (.6, #9 ranking) in the Sunday, 7-9 PM time period:

Mystery Woman �Vision of Murder� premiered Sunday, June 5 with a 1.3 HH rating, 917,000 HH, 314,000 W25-54 and 434,000 A25-54. It has a 51% increase in the time period average among households and was viewed by more than 2.0 million viewers.

McBride �The Doctor is Out� Really Out� premiered Sunday, June 12 with a 1.4 HH rating, with 927,000 Households (increasing the time period average by 45%), 342,000 W25-54, and 445,000 A25-54 and had more than 1.6 million viewers.

Jane Doe �The Wrong Face� premiered June 19 with a 1.3 HH rating, 870,000 households (increasing the time period average by +31%), 220,000 W25-54, 369,000 A25-54 and had more than 1.9 million viewers.

The 2Q�05 Hallmark Channel Original movie premieres on Saturday continued to deliver top ratings performances. �Out Of The Woods� (April 2) delivered a 2.6 HH rating, with 1,785,000 homes, 650,000 W25-54 and 955,000 A25-54. It attracted nearly 3.4 million unduplicated viewers Persons 2+; it was the highest-rated add-supported cable movie on the date, the second highest movie of that week and the 2nd most-watched telecast in Hallmark Channel history.

The Hallmark Channel Original movie, �Ordinary Miracles,� which premiered May 7 delivered a 1.3 HH rating, 889,000 households and was viewed by nearly 1.7 million unduplicated viewers

The Hallmark Channel Original movie, �Fielder�s Choice,� which premiered June 18 delivered a 1.5 HH rating, 1,034,000 Households and was viewed by nearly 1.9 million unduplicated viewers. It also increased the time period by +29% in HH, +52% in W25-54 and +38% in A25-54.

Hallmark Channel is a 24-hour basic cable channel that provides a diverse slate of high-quality entertainment programming to a national audience of 69 million subscribers. The program service is distributed through 4,800 cable systems and communities as well as direct-to-home satellite services across the country. Crown Media Holdings, Inc. (NASDAQ: CRWN) owns and operates Hallmark Channel. In 2004, Crown launched its second 24-hour linear channel, Hallmark Movie Channel. Through its subsidiary, Crown Media Distribution, LLC, Crown also distributes titles from its award-winning collection of movies, miniseries and films for exhibition in a variety of television media including broadcast, cable, Video-on-Demand and High Definition Television.

-HALLMARK CHANNEL-

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