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RESULTS for FIRST QUARTER 2005

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NTN Communications, Inc

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Title: RESULTS for FIRST QUARTER 2005
Date: 5/10/2005
Industry: BRDCST     Sector: SERVIC

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CONTACT:

James Frakes

Chief Financial Officer

NTN Communications, Inc.

(888) 752-9686 x 1263

James.Frakes@ntn.com

NTN COMMUNICATIONS announces RESULTS

for FIRST QUARTER 2005

o iTV Network Registers Highest Q1 Domestic Site Growth in 8 Years

o Fourth Consecutive Quarter of Strong iTV Network Site Growth

o Buzztime Expands Agreement with Comcast and Records Development and

License Revenues

CARLSBAD, CA, May 10, 2005 -- NTN Communications, Inc. (AMEX: NTN), a leader in

interactive communications and entertainment products for the home and for the

hospitality industry, today announced results for the first quarter ended March

31, 2005. NTN will host a live webcast and conference call today at 1:00 pm EDT

to discuss the results (see conference call details below).

First Quarter 2005 Results

Consolidated Results

Consolidated revenues increased by 7.5% to $9.51 million in the first quarter of

2005, compared to revenues of $8.84 million in the first quarter of 2004. The

company reported a consolidated net loss of $1,347,000, or $(0.03) per common

share for the 2005 period, which was a $53,000 increase over the net loss of

$1,294,000, or $(0.02) per common share in the 2004 period. The $1.35 million

net loss represented the combination of a net loss of $684,000 from the NTN

Hospitality Technologies division and a net loss of $663,000 from NTN's Buzztime

subsidiary.

Hospitality Technologies Division Results

Revenues for the Hospitality Technologies division increased by $412,000, or

4.7%, to $9,213,000 in the first quarter of 2005, compared to revenues of

$8,801,000 in the first quarter of 2004. The revenue growth arose primarily from

the NTN iTV Network both domestically and in Canada.

NTN iTV Network's net site growth of 45 sites in the United States in the first

quarter of 2005 was the strongest first quarter net site growth in eight years.

NTN historically has posted losses in its domestic net site count in the first

quarter due in part to the end of the football season occurring in that period.

The net site growth of 45 gave the company a 119-site quarterly improvement over

a 2004 first quarter loss of 74 sites, and was well above an average first

quarter loss of 57 sites over the previous seven years. The quarter ended with a

record U.S. site count of 3,354, which was 307 sites higher than at March 31,

2004. Management attributes this success to the marketing launch of its new NTN

Blast content, including the Texas Hold `em poker game, and a restructured sales

force.

The NTN Hospitality Technologies division's net loss of $684,000 in the first

quarter of 2005 represented an increased loss of $372,000 from a net loss of

$312,000 in the first quarter of 2004. Within the Hospitality Technologies

division, the three segments posted the following revenue and income

contributions:

<TABLE>

<S> <C>

Three Months Ended March 31,

2005 2004

---- ----

Revenues by Segment:

NTN iTV Network $ 6,793,000 $ 6,316,000

NTN Wireless 1,466,000 1,539,000

Software Solutions 954,000 946,000

---------- ----------

Hospitality Technologies Division Revenues $ 9,213,000 $ 8,801,000

========= =========

Income (Loss) by Segment:

NTN iTV Network $ (63,000) $ 197,000

NTN Wireless 49,000 55,000

Software Solutions (670,000) (564,000)

-------- --------

Hospitality Technologies Division Income (Loss) $ (684,000) $ (312,000)

========= =========

</TABLE>

Net Income in the three segments is addressed as follows:

a) The earnings of the NTN iTV Network segment declined as a result of several

cost items summing to $537,000 as follows:

1. Sarbanes-Oxley-related costs of $141,000, including related internal audit

expenses, with no comparable expense in the Q1 2004.

2. $184,000 of expenses relating to the UK trial with no comparable expense in

the Q1 2004.

3. An increase in technical site visits and freight and shipping of $159,000

as the company moved to aggressively install new sites and upgrade software

in existing sites.

4. Increased non-cash stock based compensation expense of $53,000.

Without these charges, the NTN iTV Network segment net income would have been

$277,000 higher in the first quarter of 2005 than in 2004. Management believes

that going forward in 2005, Sarbanes-Oxley-related costs will decline as we move

into year two of that government mandate.

b) Earnings in the Wireless Segment were negatively impacted in periods by

approximately $40,000 in legal fees incurred while successfully defending a

lawsuit from a competitor. On March 2nd 2005, the court dismissed the

competitor's litigation under a settlement agreement without liability or any

payment by NTN to the other party.

c) The increased loss in the Software Solutions segment was due to a $276,000

one-time, non-cash charge related to the spin off of some of the segment's

software products to Intura Solutions LP that reflected the transfer of certain

of our intangible assets to Intura. Without that non-cash charge, the segment

would have posted a reduced loss of $170,000. That economic improvement was due

to personnel reductions at that segment. Following the Intura transaction, we

are now focusing on our reservation and table management products, which we

believe show strong potential.

Buzztime Subsidiary Results

Buzztime revenues increased by $251,000 to $294,000 in the first quarter of 2005

from $43,000 in the first quarter of 2004. The primary components in the

$251,000 revenue increase were an incremental $188,000 revenue under the Trial

Agreement with Comcast Cable that related to a combination of technology

development work, equipment installations and license fees and an incremental

$40,000 in consumer subscription fees via our distribution through

wireless/mobile phones and satellite television companies.

The net loss for Buzztime was $663,000 in the first quarter of 2005, a reduction

of $319,000, or 32.5%, from the net loss of $982,000 in the first quarter of

2004.

NTN posted consolidated EBITDA of $(333,000) in the first quarter of 2005

compared to EBITDA of $(314,000), a decrease of $19,000. The NTN Hospitality

Technology division posted EBITDA of $173,000 in the first quarter of 2005

versus $547,000 in the 2004 period.

"We are very pleased with the positive long-term trends of the operations,"

stated chairman and CEO Stanley B. Kinsey. "In Buzztime, our revenues and

relationships with the cable operators strengthened while we increased licensing

revenues from satellite and mobile markets. We also expect to recognize retail

license revenues in Q2 from our new Buzztime plug-and-play retail electronic

home game.

"Our Hospitality Technologies business is getting stronger as can be seen by the

normalized numbers. The fantastic increase in iTV Network site count will drive

substantial recurring iTV revenues. Meanwhile, we have made improvements to our

Software Solutions business and have begun in Q2 to book the first solid

revenues from that segment's customer management products. Finally, we maintain

a positive outlook for the UK market as our trial demonstration period is

showing several reasons for long-term optimism."

Conference Call

A conference call to review the first quarter earnings is scheduled for today at

1:00 pm. EDT. Investors may access the teleconference call by dialing (800)

795-1259 approximately 15 minutes prior to the starting time and ask to be

connected to the NTN Communications First Quarter Earnings Conference Call.

International callers please dial (785) 832-0326. This call is also being

simultaneously webcast and can be accessed at NTN Communications' web site at

www.ntn.com.

A replay will be available beginning on immediately following the conclusion of

the conference call through May 24, 2005 at 11:59 p.m. EST. Please dial (800)

839-4198 to access the replay. International callers please dial (402) 220-2988.

An archive of the webcast will also be available on the Company's Web site at

www.ntn.com.

About NTN Communications, Inc. Based in Carlsbad, CA, NTN Communications, Inc.

is the parent corporation of the NTN Hospitality Technologies division and

Buzztime Entertainment, Inc., a subsidiary. The NTN Hospitality Technologies

division, which focuses on the out-of-home hospitality industries, is comprised

of the NTN interactive Television (iTV) Network, NTN Wireless Communications,

Inc. and NTN Software Solutions, Inc. The iTV Network is the largest out of home

interactive entertainment network in the world and provides a promotional

service to our hospitality customers. The NTN iTV Network delivers entertainment

and sports game content engaging more than 1.7 million players and reaching more

than 6 million unique customers each month in over 3,600 North American

hospitality locations. NTN Wireless(TM) manufactures, sells, and repairs paging

equipment to over 2,700 restaurants, as well as providing on site messaging

solutions for hospitals, church and synagogue nurseries, salons, business

offices and retail establishments. NTN Software Solutions develops and markets

restaurant management software products to over 3,400 restaurants. NTN

Hospitality Technologies provides services to leading restaurants such as

Applebee's, Buffalo Wild Wings, The Cheesecake Factory, Darden Restaurants,

Domino's Pizza, Gaylord Entertainment, MGM MIRAGE, TGIFriday's and more.

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