Remark Media Reports Fourth Quarter and Full Year 2016 Results

LAS VEGAS, March 30, 2017

"Our fourth quarter performance provides a strong close to a very successful year for us," said Kai-Shing Tao, Remark Media's Chairman and CEO.  "We achieved several developmental and commercialization milestones related to our KanKan Data Intelligence Platform, including our expansion of KanKan from a social media network into a business-to-business solution and the introduction of new products. We are partnering with companies such as Alibaba Cloud and TenCent to deploy enterprise and precision marketing solutions that leverage our unprecedented data set.  In fact, our KanKan Open Artificial Intelligence Platform recently received the "best break-through technology" award from Alibaba.  Out of 400 companies invited to participate, KanKan was ranked the number one start-up affiliated with the Alibaba eco-system. In addition, we are introducing proprietary products – such as KanKan Social Credit Service – that utilize the KanKan Data Intelligence Platform to address unmet needs in the China marketplace.

"Our Vegas.com business is also performing well, highlighting the operational improvements we have made since the acquisition in 2015. In fact, in 18 months' time, we have successfully turned around a business with no growth into a business with projected double-digit EBITDA growth on an annual basis. We continue to enhance the technologies and website features that reinforce Vegas.com's position as the official website for Las Vegas entertainment.  In fact, of the top 20 show ticket sales days in Vegas.com history, 18 have occurred since Christmas Day of 2016, and all 20 have occurred since we acquired Vegas.com in September 2015.

"In addition, our acquisition of FansTang during the third quarter of 2016 provided us with a comprehensive digital media content platform and a prominent portfolio of partnerships with leading brands around the world.  We believe we have established a formidable set of synergistic assets, each of which presents significant monetization opportunities in the months and years ahead.  We are excited about our ability to accelerate our growth in 2017."

Financial Results for the Three Months Ended December 31st:  2016 Compared to 2015
The company's fourth quarter 2016 results reflect the acquisition of FansTang, which occurred in September 2016, whereas the prior year financials do not.

• Net revenue was $15.0 million, compared to $11.8 million.
• Total cost and expense was $23.5 million, compared to $19.0 million.
• Operating loss was $8.6 million, compared to $7.2 million.
• Net loss was $8.6 million, or $0.40 per diluted share, compared to $14.1 million, or $0.72 per diluted share.
• At December 31, 2016, the cash and cash equivalents balance was $6.9 million, and total restricted cash was $11.7 million, bringing the total combined cash position to $18.5 million.

Financial Results for the Year Ended December 31st:  2016 Compared to 2015
The financial results for the full year 2016 period reflect the operating results of Vegas.com, which was acquired in September 2015.

• Net revenue was $59.3 million, compared to $14.2 million.
• Total cost and expense was $80.8 million, compared to $36.8 million.
• Operating loss was $21.4 million, compared to $22.6 million.
• Net loss was $31.7 million, or $1.54 per diluted share, and included a loss on extinguishment of debt of $9.2 million. This compared to $31.4 million, or $2.06 per diluted share for the year ended December 31, 2015.

Conference Call Information
Remark Media's management team will hold a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its fourth quarter and full year 2016 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 1-877-440-5787 and for international calls dial 1-719-325-2145 approximately 10 minutes prior to the start of the conference. The conference ID is 9327076. The conference call will also be broadcast live over the Internet and available for replay for one year at www.remarkmedia.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the replay, U.S. callers may dial 1-844-512-2921, and international callers may dial 1-412-317-6671. Enter access code 9327076.