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                                                   Filer: iNTELEFILM Corporation
                                         Subject Company: Harmony Holdings, Inc.
                                                  Registration Number: 333-38474

       INTELEFILM CORPORATION EXTENDS EXCHANGE OFFER TO ACQUIRE REMAINING
                         HARMONY HOLDINGS, INC. SHARES

         MINNEAPOLIS, MINN., Jan. 2, 2001 - INTELEFILM CORPORATION
(NASDAQ:FILM) announced today that it is extending the expiration date of its
exchange offer for 3 additional business days to the stockholders of Harmony
Holdings, Inc. iNTELEFILM, which owns approximately 55% of Harmony's outstanding
common stock, has made an offer to Harmony's stockholders to acquire all shares
of Harmony not currently owned by it, in exchange for iNTELEFILM stock.

         iNTELEFILM is offering one share of its common stock for every 13.75
shares of Harmony common stock validly tendered and not properly withdrawn. The
offer and withdrawal rights, as extended, will expire at 11:59 p.m., Minneapolis
time, on Thursday, January 4, 2001. The offer is subject to the condition that
stockholders of Harmony tender, and do not withdraw, a sufficient number of
shares of Harmony common stock which, together with the Harmony common stock
already owned by iNTELEFILM, constitutes at least 90% of the issued and
outstanding common stock of Harmony. As of 11:59 p.m., Minneapolis time, on
December 29, 2000, 2,296,838 shares had been tendered, which together with the
shares owned by iNTELEFILM, equals approximately 85.6% of the issued and
outstanding common stock of Harmony.