HALLMARK CHANNEL EXPANDS ITS LOCAL AD SALES REACH WITH NEW LAUNCHES REPRESENTING OVER 200,000 CABLE SUBSCRIBERS

Hallmark Channel announced today that two cable systems, Charter Communications of Birmingham and Montgomery, AL, serving 209,000 total subscribers, have added Hallmark Channel to their local advertising sales insertion roster. These additions bring the Hallmark Channel�s total local ad sales subscriber reach to 34.4 million, with growth of 3.1 million subscribers to-date in 2004. The announcement was made by Janice Arouh, SVP Network Distribution and Service for Hallmark Channel.

Hallmark Channel�s continued ratings success, in addition to its premium advertising environment, led to the expansion in local ad sales participation. In addition, Hallmark Channel offers participating local ad sales affiliates the opportunity to participate in its �Great Stories Sweepstakes,� which provides local advertisers point-ofsale displays that promote original moves and a chance to win a Hallmark Channel DVD library.

�Through our local ad sales offerings, Hallmark Channel is able to use the power of our brand, our high-quality, family-friendly programming and our premium advertising environment to positively impact the bottom line of our affiliate partners and their advertisers,� stated Ms. Arouh.

Hallmark Channel is a 24-hour basic cable channel that provides high-quality, entertainment programming to a national audience of 63.5 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.