ACME Communications, Inc. owns and operates 10 broadcast television stations in medium-sized markets across the United States.

ACME Communications, Inc. possède et actionne 10 stations de télévision ur les marchés de moyenne-taille à travers les Etats-Unis.

On April 4, 2006, the Company completed the previously announced sale of its television station in Salt Lake City (KUWB) to Clear Channel Broadcasting for $18.5 million in an all-cash transaction. As a result of this transaction, "Discontinued Operations" accounting has been adopted in the financial statements for all periods presented in this press release and the results from the operations of KUWB, which include an allocation of interest expense, have been reclassified from losses from continuing operations and reflected as a loss from discontinued operations. 

ACME's net revenues from continuing operations for the first quarter increased 10% to $10.6 million compared to net revenues of $9.6 million in the first quarter of 2005. The increase in net revenues for the quarter reflects a weighted average increase of 7% in non-political market revenues in the Company's continuing markets along with an increase in the station group's revenue share, coupled with a 21% increase in revenues at The Daily Buzz, the Company's weekday morning news venture. Broadcast cash flow (as defined in Supplemental Table 1) for the quarter increased 646% to $1.1 million compared to broadcast cash flow of $150,000 for the first quarter of 2005. Adjusted EBITDA (as defined in Supplemental Table 1) was $278,000 compared to negative $683,000 in the first quarter of 2005. The Company's loss from discontinued operations for the first quarter of 2006 was $541,000 compared to a loss of $1.2 million for the first quarter of 2005 on lower losses at its Salt Lake City station. The Company's net loss for the first quarter of 2006 was $3.8 million compared to a $4.6 million net loss in the first quarter of 2005. 

The significant increase in broadcast cash flow results reflects the combination of solid revenue growth at the stations driven by modest increases in viewership shares, continued strong local advertising demand and improved national advertising demand, coupled with a 2% decrease in the station group's cash-based operating expenses (as set forth on Supplemental Table 2). The decrease in cash-based station operating expenses was driven by a 9% decrease in program related payments on lower commitments compared to the first quarter of 2005.