HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

	QUARTER ENDED DECEMBER 31, 2002
(Unaudited)

		Quarter Ended December 31,
		2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$(4,304,270)
	Adjustments to reconcile net loss to net cash provided by
	operating activities:
	Depreciation and amortization	649,119
	Equity in earnings of investments, net of distribution of earnings	196,484
	Interest – non-cash	175,588
	Issuance of compensatory stock, stock options and warrants for services rendered	463,628
	Amortization of deferred compensation costs	463,927
	Provision for bad debts	68,283
	Write-off – prepaid trade credits(Note 13)	–
	Impairment loss – CBS advertising(Note 6)	–
	Distribution of earnings to minority partners	(191,486)
	Amortization of CBS advertising	315,071
	Minority interest	69,861
	Changes in assets and liabilities:
	Receivables	(204,634)
	Prepaid expenses	164,377
	Inventories	657,389
	Other current assets	(145,653)
	Other assets	28,677
	Accounts payable	(437,920)
	Deferred revenue	618,048
	Deferred Liability	127,793
	Other accrued expenses	1,399,037
	Net cash provided by operating activities	113,319

CASH FLOWS FROM INVESTING ACTIVITIES:
	Cash paid for acquisitions, net of cash received	–
	Capital expenditures	(183,236)
	Net cash used in investing activities	(183,236)

CASH FLOWS FROM FINANCING ACTIVITIES:
	Proceeds from shareholder/officer loan	–
	Proceeds from issuance of convertible debentures and warrants, less issuance costs	–
	Cash paid for acquisition	–
	Net advances from accounts receivable lender	187,507
	Proceeds from issuance of convertible debentures and warrants, less issuance costs	(65,261)
	Payments under capital lease obligations	(153,859)
	Net cash used in financing activities	(31,613)

	Net increase (decrease) in cash and cash equivalents	(101,530)

CASH AND CASH EQUIVALENTS, beginning of period		2,443,768

CASH AND CASH EQUIVALENTS, end of period		$2,342,238

SUPPLEMENTAL SCHEDULE OF CASH RELATED ACTIVITIES:
	Interest paid	$44,598

(Unaudited)

		Year Ended December 31,
		2002	2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$(81,550,116)	$(41,829,905)
	Adjustments to reconcile net loss to net cash used in
	operating activities:
	Depreciation and amortization	3,074,614	8,886,350
	Equity in earnings of investments, net of distribution of earnings	912,347	191,695
	Interest – non-cash	819,615	–
	Issuance of compensatory stock, stock options and warrants for services rendered	1,137,223	709,640
	Amortization of deferred compensation costs	2,174,368	208,286
	Provision for bad debts	233,188	550,117
	Write-off – prepaid trade credits	655,500	–
	Impairment loss – CBS advertising	57,274,680	–
	Distribution of earnings to minority partners	(700,503)	(426,226)
	Amortization of CBS advertising	11,251,566	27,822,802
	Minority interest	665,529	309,868
	Changes in assets and liabilities:
	Receivables	(423,670)	(428,565)
	Prepaid expenses	(279,972)	(59,454)
	Inventories	(57,867)	(2,814,232)
	Other current assets	(235,471)	(12,094)
	Other assets	(12,249)	(13,549)
	Accounts payable	(214,266)	(726,047)
	Deferred revenue	130,500	3,331,450
	Deferred Liability	127,793	–
	Other accrued expenses	1,069,996	(1,114,991)
	Net cash used in operating activities	(3,947,195)	(5,414,855)

CASH FLOWS FROM INVESTING ACTIVITIES:
	Cash paid for acquisitions, net of cash received	–	300,000
	Capital expenditures	(1,427,803)	(996,808)
	Net cash used in investing activities	(1,427,803)	(696,808)

CASH FLOWS FROM FINANCING ACTIVITIES:
	Proceeds from shareholder/officer loan	1,651,000	1,570,000
	Payments of shareholder/officer loan	(2,101,000)	(1,120,000)
	Payments to repurchase common stock	(340,053)	(453,700)
	Payments under note payable	(100,000)	(400,000)
	Proceeds received from exchange of advertising for common stock and warrants	2,000,000	–
	Net proceeds from issuance of common stock	–	6,323,764
	Net advances from accounts receivable lender	(4,378)	341,856
	Proceeds from issuance of convertible debentures and warrants, less issuance costs	5,342,600	–
	Proceeds from exercise of stock options and warrants	–	175,216
	Cash paid for acquisition	(10,000)	–
	Payments under capital lease obligations	(701,899)	(255,731)
	Net cash provided by financing activities	5,736,270	6,181,405

	Net increasein cash and cash equivalents	361,272	69,742

CASH AND CASH EQUIVALENTS, beginning of period		1,980,966	1,911,224

CASH AND CASH EQUIVALENTS, end of period		$2,342,238	$1,980,966

SUPPLEMENTAL SCHEDULE OF CASH RELATED ACTIVITIES:
	Interest paid	$137,551	$322,230

HOLLYWOOD
MEDIA REPORTS FOURTH QUARTER AND FULL YEAR 2002 FINANCIAL RESULTS

CONSOLIDATED BALANCE SHEETS

CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS

CONSOLIDATED STATEMENTS OF CASH FLOWS

Business
Segment Financial Information – non-GAAP

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