MDI ENTERTAINMENT, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS



                                           Six months ended
                                               June 30,
                                           2001         2000
                                        ----------   ----------
                                        (unaudited)  (unaudited)

REVENUE                                $ 6,685,465  $ 2,730,863

COST OF REVENUES                         3,724,105    1,865,363
                                        ----------   ----------
     Gross profit                        2,961,360      865,500

SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES                 1,785,101    1,844,536
TERMINATED MERGER EXPENSES                       -      727,025
COST OF UNSUCCESSFUL FUNDING                89,633            -
                                        ----------   ----------
     Operating profit (loss)             1,086,626     (706,061)

INTEREST EXPENSE, net                      119,972       41,499
OTHER (INCOME) EXPENSE                    (110,166)      57,218
GAIN ON SALE-INVESTMENT SECURITIES, net    (12,669)           -
                                        ----------   ----------

     Income (loss) before
      provision for income taxes         1,089,489   (1,804,778)

PROVISION FOR INCOME TAXES                  12,035        2,329
                                        ----------   ----------

     Net income (loss)                 $ 1,077,454  $(1,807,107)
                                        ==========   ==========

Basic Earnings (Loss) Per Common Share        $.10       $ (.20)
                                        ==========   ==========

Diluted Earnings (Loss) Per Common Share      $.09       $ (.20)
                                        ==========   ==========


                MDI ENTERTAINMENT, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF OPERATIONS


                                          Three  months ended
                                                June 30,
                                           2001         2000
                                        ----------   ----------
                                        (unaudited)  (unaudited)

REVENUE                                $ 3,563,467  $ 1,715,901

COST OF REVENUES                         2,004,222    1,197,492
                                        ----------   ----------
    Gross profit                         1,559,245      518,409

SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES                   911,557    1,065,757
TERMINATED MERGER EXPENSES                       -      727,025
COST OF UNSUCCESSFUL FUNDING                89,633            -
                                        ----------   ----------
     Operating profit (loss)               558,055   (1,274,373)

INTEREST EXPENSE, net                       42,212       23,125
OTHER EXPENSE                                    -       36,441
LOSS ON SALE-INVESTMENT SECURITIES, net     11,637            -
                                        ----------   ----------
     Income (loss) before
      provision for income taxes           504,206   (1,333,939)

PROVISION FOR INCOME TAXES                   4,035            -
                                        ----------   ----------
     Net income (loss)                 $   500,171  $(1,333,939)
                                        ==========   ==========

Basic Earnings (Loss) Per Common Share        $.04        $(.15)
                                        ==========   ==========

Diluted Earnings (Loss) Per Common Share      $.04        $(.15)
                                        ==========   ==========