1

                                                   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, Feb. 26, 2001 - iNTELEFILM Corporation (NASDAQ:FILM)
announced today it is extending the expiration date of its exchange offer for
three additional business days to the stockholders of Harmony Holdings, Inc.
(OTC/BB: HAHO). 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, 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shares of Harmony common stock validly tendered and not properly withdrawn.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 Wed., Feb. 28, 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 Feb. 23, 2001, shares of Harmony
totaling 2,601,878 had been tendered, and together with the shares already owned
by iNTELEFILM, equals approximately 89.81% of the issued and outstanding common
stock of Harmony.