MDI ENTERTAINMENT, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENT OF OPERATIONS
          FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000

                                      Three Months     Three Months
                                         Ended            Ended
                                     March 31, 2001   March 31, 2000
                                    ---------------- ----------------
                                       (Unaudited)      (Unaudited)
                                      Amount     %     Amount     %
                                    ---------- ----- ---------- -----

Total Revenue                       $3,121,999 100.0 $1,104,963 100.0

Cost of Revenues                     1,719,883  55.1    667,871  65.8
                                    ---------- ----- ---------- -----

     Gross Profit                   $1,402,116  44.9    347,092  34.2

Selling, general and administrative
 expenses                              873,544  28.0    778,778  76.7
                                    ---------- ----- ---------- -----
     Operating profit (loss)           528,572  16.9   (431,686)(42.5)

Other Income (Expense) Net              56,712   1.8   ( 39,152) (3.9)
                                    ---------- ----- ---------- -----
     Income (loss) before provision
      for income taxes                 585,284  18.7   (470,838)(46.4)

Provision for income taxes               8,000    .2      2,329    .2
                                    ---------- ----- ---------- -----
     Net Income (loss)              $  577,284  18.5 $ (473,167)(46.6)
                                    ========== ===== ========== =====

Basic Earnings (loss) Per Common
 Share                              $      .05       $     (.05)
                                    ==========       ==========

Diluted Earnings (loss) Per Common
 Share                              $      .05       $     (.05)
                                    ==========       ==========

EBITDA                              $  797,717  25.6 $ (395,961)(39.0)
                                    ========== ===== ========== =====