NATIONAL MEDIA CORPORATION

National Media Corporation is the world's largest publicly held direct response (infomercial) television company and a leader in the growing world of electronic commerce. The company broadcasts more than 3,000 half hours of programming each week throughout the world, bringing its programming to more than 370 million television households in more than 70 countries worldwide. As it approached the end of the century, National Media hoped to begin providing live, taped, and on-demand video programmi... ng over the Internet. The television infomercial was born in 1984. Prior to 1984, the Federal Communications Commission (FCC) limited the amount of advertising to 16 minutes of commercial messages per hour. In 1984 the FCC eliminated its limitations and permitted the sale of blocks of advertising. Recognizing the advertising opportunity, infomercial producers began buying chunks of broadcast time from cable operators. Their half-hour and one-hour shows combined direct response marketing and retailing principles in a television talk show format. Media Arts International, based in Phoenix, Arizona, was one of the first companies to produce infomercials in 1984. In November 1986 Media Arts International was acquired by National Media Corporation, then known as National Paragon Corporation, for $4 million, as part of National Paragon's approved reorganization plan. Prior to entering the infomercial business, National Paragon Corporation was engaged in the needlecraft business for more than 60 years. In 1984 it formed National Syndication, Inc., a subsidiary that managed a variety of specialty catalogs and mail-order businesses. In October 1985 National Paragon filed for bankruptcy protection under Chapter 11 of the Bankruptcy Reform Act. A year later it emerged from Chapter 11 and in November 1986 acquired Media Arts International as part of its approved reorganization plan. On July 24, 1987, National Paragon Corporation adopted its present name, National Media Corporation. Fiscal 1988 (ending March 31, 1988) was the company's first profitable year following its emergence from bankruptcy protection, when it reported net income of $4.2 million on revenues of $31.9 million. For fiscal 1989 it had net income of $2.5 million on sales of $31.8 million. Then, in fiscal 1990, revenues increased dramatically to $92.7 million, with net income rising to $11.5 million. In September 1990, the company's stock, which had been trading on the NASDAQ, was approved for listing on the New York Stock Exchange. SYMBOL: NM

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