Unitel Video Completes the Final Phase of Financingfor Digital Mobile Production Units.

NEW YORK--(BUSINESS WIRE)--January 13, 1998--

Second New Unit To Be Delivered In February

Unitel Video, Inc. (ASE:UNV), a leading national independent video services company, today announced that it completed the final phase of financing amounting to $3.5 million (for a

total of $8.5 million) in Industrial Revenue Bonds issued by Allegheny County, Pennsylvania with which the Company funded the construction of two state-of-the-art digital mobile television production units, GOLD and SILVER. The Company also obtained a $500,000, 5% loan from the Commonwealth of Pennsylvania Machinery Equipment Loan Fund. The SILVER mobile unit is currently in the final phase of construction and will be operational in February.

Since its delivery in September, the GOLD mobile unit has already provided production facilities and services for the entertainment industry's highest profile specials and clients including The Miss America Pageant, HBO's Whitney Houston Special, MTV Network's Video Music Awards, The Diners Club Matches, GQ Man of the Year Awards, Wheel of Fortune, Jeopardy, The Cable Ace Awards and The Billboard Awards.

Barry Knepper, Chief Executive Officer of Unitel Video, stated, "This attractive financing funded the construction of the industry's most advanced mobile television production units. These facilities which provide on-location services at the nation's leading special events, are in high demand by the entertainment industry's most prominent clients. Unitel is a leading service provider to this sector of the market, and we have focused on our mobile division as an area for further growth and investment. GOLD and SILVER are unique in that they can process either analog or digital signals or both at the same time, providing us with flexibility and a unique competitive advantage as the television industry presently uses both standards."

Unitel Video, Inc. is a leading provider of studio and mobile production facilities, and post-production and special effects services to virtually every major entertainment company in the United States. The Company's studio division comprises eight production studios in New York City which are used by leading network, cable and syndicated television producers. The Company's mobile division, with ten units, provides on-location services for the taping and live telecasting of sports, musical, entertainment and cultural events throughout North America. The Company also provides post-production and new media services to producers of theatrical films, television programs and corporations through its New York and Los Angeles-based facilities. -0-

This news announcement contains certain forward-looking statements under federal securities laws which are based upon current expectations and involve certain risks and uncertainties. Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, readers should note that these statements may be impacted by several factors, and, accordingly, the Company's actual performance and results may vary from those stated herein.

CONTACT: Unitel Video Inc.

Barry Knepper

Chief Executive Officer

212/265-3600

or

Jaffoni & Collins Incorporated

Joseph N. Jaffoni

212/835-8500 or info@jcir.com