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Helios and Matheson Issues MoviePass Progress Report

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Owner of Theater Subscription Service Highlights Growth of New Model
for Movie Ticketing

Data and technology company Helios and Matheson Analytics Inc. (Nasdaq: HMNY) ("Helios"), owner of MoviePass, today reflected on its one year
anniversary of its revolutionary movie subscription service and
formalized plans for it new, sustainable business model.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180815005435/en/

Helios and Matheson issues MoviePass progress report (Photo: Business Wire)

Helios and Matheson issues MoviePass progress report (Photo: Business Wire)

One year ago, today, Helios announced
its acquisition of a small U.S. movie theater subscription company,
MoviePass. With only eight employees at the time, MoviePass was
considered a fringe player supporting 720 partnered screens and having
15,000 subscribers. When MoviePass lowered its subscription price from
$20 per month to $9.95 per month, it created a movement bringing movie
enthusiasts back to movie theaters and became a boon to a declining
industry which, one year later, is showing signs of a financial rebound.

Within the first several days, MoviePass grew 1,000%, from 15,000
subscribers to 150,000. MoviePass continued the quick growth trajectory,
acquiring one million subscribers in just four months. This growth
enabled MoviePass to close deals with Costco, iHeart Radio,
and major Hollywood studios.

Now, MoviePass has over 2,000 partner screens while also available for
use at 91% of movie theaters nationwide. MoviePass recently launched a
new subscription model which is projected to reduce its cash deficit by
approximately 60% or more while allowing its subscribers to enjoy three
movies per month for $9.95 per month and additional movies at a
discounted price, a "win-win" for its subscribers and the industry.

"We far exceeded our 2017 expectation for Helios and MoviePass,"
said Ted Farnsworth, Helios chairman and CEO. "In our agreement to
acquire MoviePass in August 2017, MoviePass had a performance milestone
to achieve 100,000 subscribers in one year. We were all surprised to see
the subscriber growth surpass that milestone in one week. It is rare to
see surprises of this magnitude. We've reached an important point in our
company where, after a year of research and analysis, we believe we have
fine-tuned the MoviePass business model to fit our unique growth rate.
Under the new plan, we believe we are creating a more sustainable path
for MoviePass and its loyal subscribers."

"Measured by number of movie tickets sold, we are the fourth largest
theater chain in the country without any brick and mortar locations, or
screens," said MoviePass CEO Mitch Lowe. "It's an amazing milestone
considering we feel like we've just begun."

Helios/MoviePass One Year Highlights:

  • Helios acquired MovieFone which will be integrated with MoviePass.
  • Helios launched MoviePass Ventures at Sundance Film Festival 2018.
  • Helios launched MoviePass Films with Emmett Furla Oasis Films and
    veteran Hollywood producers Randall Emmett and George Furla.
  • MoviePass Films signed Bruce Willis for its first production, 10
    Minutes gone.
  • MoviePass E-Ticketing partners have seen a 38% growth in just the last
    few weeks.
  • MoviePass now accounts for approximately 6% of all movie tickets sold
    in the U.S. in any given week.
  • MoviePass has purchased over $450 million worth of tickets in the last
    12 months.
  • 49% of MoviePass subscribers are seeing movies they wouldn't normally
    see in theaters.
  • MoviePass has partnered with 2 major studios and over 10 independent
    distributors and was engaged to promote their films, showing efficacy
    in marketing and buying a greater percentage of their box office,
    showing it can persuade subscribers to see particular titles over
    others.
  • HMNY, MoviePass' parent, established MoviePass Ventures in January
    2018, and co-acquired rights to two movie titles, American Animals
    and Gotti, and brought its subscriber base a series of
    MoviePass subscriber-only events. It has begun to monetize the titles
    downstream, beyond the theatrical window.
  • MoviePass conducted a series of sweepstakes and offers, showing the
    responsiveness and receptiveness of its subscriber base, including a
    1.5% conversion rate for a financial services company (compared to an
    average 0.025% conversion rate) and over 120,000 opt-ins in a 24-hour
    period for a movie-related sweepstakes.
  • MoviePass is one of the most widely read business stories of 2018.
  • 47% of MoviePass subscribers are recommending more movies to friends.
  • 70% of MoviePass subscribers state that they somewhat or strongly
    agree that they are still more likely to see a film despite a low
    Rotten Tomatoes score.
  • Beast, a Roadside Attractions'/30West's production:
    MoviePass-supported and E-ticketing screens grossed 54.7% higher than
    theaters that MoviePass does not support.
  • MoviePass ticket purchases represented 16.8% of Thursday night
    previews for Paramount's Book Club.
  • During the July 4th 2018 holiday week, MoviePass accounted for over 5%
    of Universal Pictures' First Purge, a 3,000+ screen wide
    release.
  • Hearts Beat Loud, a Sundance favorite: MoviePass represented
    40% of the film's box office take in its first full week of its
    theatrical release in New York and Los Angeles.
  • Tag, which MoviePass promoted in-app, represented 13% of the
    film's opening weekend domestic box office.
  • A Miseducation of Cameron Post: MoviePass represented 57% of
    the film's opening weekend NYC release.
  • Blindspotting: MoviePass contributed 22.7% of its opening weekend
    domestic box office, and 24.7% through the first Tuesday following its
    release (37.6% domestic box office contribution on Monday, 30.8%
    domestic box office contribution on Tuesday) that included advance
    member screenings.

About Helios and Matheson Analytics

Helios and Matheson Analytics Inc. (Nasdaq: HMNY)
("Helios") is a provider of information technology services and
solutions, offering a range of technology platforms focusing on big
data, artificial intelligence, business intelligence, social listening,
and consumer-centric technology. Helios currently owns approximately 92%
of the outstanding shares (excluding options and warrants) of MoviePass
Inc., the nation's premier movie-theater subscription service. Helios'
holdings include RedZone Map™, a safety and navigation app for iOS and
Android users, and a community-based ecosystem that features a socially
empowered safety map app that enhances mobile GPS navigation using
advanced proprietary technology. Helios is headquartered in New York, NY
and listed on the Nasdaq Capital Market under the symbol HMNY. For more
information, visit us at www.hmny.com.

About MoviePass Inc.

MoviePass Inc. ("MoviePass") is a marketing technology platform
enhancing the exploration of film and the moviegoing experience. As the
nation's premier movie-theater subscription service, MoviePass provides
film enthusiasts the ability to attend select new movies in theaters.
The service, now accepted at more than 91% of theaters across the United
States, is the nation's largest theater network. Visit us at moviepass.com.

Cautionary Statement on Forward-looking Information

Certain statements in this communication contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 or under Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (collectively, "forward-looking statements") that may not be
based on historical fact, but instead relate to future events, including
without limitation statements containing the words "believe", "may",
"plan", "will", "estimate", "continue", "anticipate", "intend",
"expect", "project" and similar expressions. All statements other than
statements of historical fact included in this communication are
forward-looking statements.

Such forward-looking statements are based on a number of assumptions.
Although Helios' management believes that the assumptions made and
expectations represented by such statements are reasonable, there can be
no assurance that a forward-looking statement contained herein will
prove to be accurate. Actual results and developments (including,
without limitation, the ability of MoviePass to reduce its cash deficit
by 60% while allowing its members to enjoy more than three movies per
month and the ability to create a more sustainable path for MoviePass)
may differ significantly from those expressed or implied by the
forward-looking statements contained herein and even if such actual
results and developments are realized or substantially realized, there
can be no assurance that they will have the expected consequences or
effects. Risk factors include, among other things: Helios' capital
requirements and whether or not it will be able to raise capital as
needed; the success of MoviePass' cost-reduction and subscription
revenue increase measures; the ability to successfully develop the
business model of MoviePass; the ability to integrate the operations of
MoviePass, MoviePass Ventures, MoviePass Films, Moviefone and other
acquired businesses into Helios' operation; MoviePass' ability to retain
its existing subscribers and market and sell its services to new
subscribers, and the risk factors described in Helios' Annual Report on
Form 10-K for the fiscal year ended December 31, 2017, its quarterly
report on Form 10-Q for the quarter ended June 30, 2018 and other
filings, including subsequent current and periodic reports, information
statements and registration statements filed with the U.S. Securities
and Exchange Commission. You are cautioned to review such reports and
other filings at www.sec.gov

Given these risks, uncertainties and factors, you are cautioned not to
place undue reliance on such forward-looking statements and information,
which are qualified in their entirety by this cautionary statement. All
forward-looking statements and information made herein are based on
Helios' current expectations and Helios does not undertake an obligation
to revise or update such forward-looking statements and information to
reflect subsequent events or circumstances, except as required by law.

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