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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. 5, 2001 - INTELEFILM CORPORATION (NASDAQ:FILM)
announced today that it is extending the expiration date of its exchange offer
for 14 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shares of Harmony common stock validly tendered and not properly withdrawn.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 5:00 p.m., Minneapolis
time, on Thursday, January 25, 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 5:00 p.m., Minneapolis time, on
January 4, 2001, 2,361,128 shares had been tendered, which together with the
shares owned by iNTELEFILM, equals approximately 86.45% of the issued and
outstanding common stock of Harmony.