Stream Communications Network and Media Inc.

Stream Communications Network and Media Inc.

February 24, 2005 14:13 ET

Stream Announces Its Expansion Objectives For 2005


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STREAM COMMUNICATIONS NETWORK AND MEDIA INC.

OTC Bulletin Board SYMBOL: SCNWF

FEBRUARY 24, 2005 - 14:13 ET

Stream Announces Its Expansion Objectives For 2005

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 24, 2005) - Stream
Communications Network And Media Inc. (OTCBB:SCNWF) (the "Company") is
pleased to announce that it has established a plan of action to reach
its expansion objectives for 2005. With the highly fragmented cable TV
market in Poland, the Company plans to continue and increase its market
penetration and acquisition program in Poland. In addition, there will
be further emphasis and direct marketing efforts to increase Internet
and VoIP subscriptions. For the year ended December 31, 2005 the Company
plans to raise USD $50 million as previously announced on November 17,
2004. The Company intends to spend the proceeds on acquisition targets,
organic growth and marketing in order to increase its subscriber base by
approximately 200,000 subscribers. The Company expects to raise the
funds by the end of second quarter of 2005. Monies raised for
acquisition will be a mix of debt and equity. The Company has not
determined the ratio of debt and equity at this time.

At December 31, 2004 the average cable TV revenue per subscriber was
approximately US$6.40 per month. It is presently estimated to be US$7.00
per month per subscriber and it is estimated that cable TV subscriber
revenues will rise approximately to US $8.60 by December 2005 and
US$11.00 by December 2006. These projections are based on a number of
factors. It is expected that the Polish zloty will rise against the US
dollar in the future to a projected 2.8 zloty to one US dollar. The
marketing of new and additional channels and premium video services is
expected to increase the monthly fee subscribers will pay. With Poland
joining the EU, it is expected that disposable income will rise in
Poland. The revenue from each network will vary. This may be reflected
in the acquisition price for a particular network. Factors that are of
interest in the acquisition process include the penetration rate (like
homes passed), the existing level of services and the opportunity to
provide more channels, content and services, thereby increasing
subscriber numbers and revenues in the future.

In addition to cable TV, the Company also offers broadband Internet
access and VoIP. At December 31, 2004 Internet subscribers accounted for
approximately three percent of the total subscribers, but revenue was
relatively three times higher at nine percent of total revenues. By the
end of 2005, the Company wants to increase the percentage of Internet
subscribers to 22%. At this level, the percentage of Internet revenue
would account for 37.5% of total revenue. In later years, it is expected
that cable TV subscriber numbers will increase faster than Internet
reducing internet subscriber numbers to the 16% to 18% level.
Additionally, VoIP presently at less than one-half of one percent of
total subscribers has similar multiples to that of Internet. If the
deployment of the VoIP marketing strategies is successful VoIP could
account for five percent of total subscribers by the end of 2005. The
higher fees charged for Internet, premium video services and VoIP add an
additional component to cable income giving a blended average revenue
per unit per month estimated to be US$11.30 for December 2005 and
US$13.20 for December 2006. Factors that influence these rates include
the demand for services, competition, range of services and the market
direction. In addition, the Company will focus on deploying further
digital technologies enabling the Company to add new television and
broadband Internet services.

The Company looks forward to inform its shareholders on a regular as to
its progress of this expansion and modernization program.

About Stream

Stream is a broadband cable company and offers Cable TV, high-speed
Internet and VoIP services in Poland. With 55,000 subscribers currently,
Stream is one of the principal consolidators of the cable TV sector and
is a leading Cable TV operator and Internet provider in the densely
populated markets of Southern Poland. Established in 2000, Stream has
offices in Vancouver and Krakow, and is listed on the OTCBB, trading
symbol SCNWF.

Safe harbor for Forward-Looking Statements:

Except for statements of historical fact, the information presented
herein constitutes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of the company to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include general economic and business
conditions, the ability to acquire and develop specific projects, the
ability to fund operations and changes in consumer and business
consumption habits and other factors over which Stream Communications
Network and Media Inc. has little or no control.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Stream Communications Network And Media Inc.
    Mike Young
    Investor Relations
    (604) 669 2826 or Toll Free: 1-800-704-9649
    mike.young@streamcn.com