As Seen On TV's CEO Writes Letter to Shareholders

              As Seen On TV's CEO Writes Letter to Shareholders

Outlines Vision for Future of Business

PR Newswire

CLEARWATER, Fla., Aug. 26, 2013

CLEARWATER, Fla., Aug. 26, 2013 /PRNewswire/ --As Seen On TV, Inc. (OTCQB:
ASTV), a leading multi-platform product marketing company and online shopping
destination, today released the following letter to its shareholders:

Dear Shareholder,

A few months ago I joined As Seen on TV as your CEO, and now I want to give
you an update on our significant progress across a number of fronts and our
vision for the future of the business. Leading this company and developing its
unique assets is a rare opportunity. The management team and I are more
excited than ever about what lies ahead. As we continue to build upon our
access to creative inventors, celebrities, product partners, and our own
multi-channel distribution platforms, we're uniquely positioned to become the
leading product partner and distributor in the As Seen on TV category – bar
none.

First, what have we been doing? Since joining, we've evaluated all aspects of
our operations in order to improve customer satisfaction, reduce costs, and
focus on the right opportunities to leverage our core assets. This has allowed
us to realign our organization and conserve its precious resources. For
example, we rapidly integrated eDiets into the As Seen on TV business and
significantly cut our overhead cost to just one-third of what it was a few
months ago. We've saved approximately $2.7M annually through vendor pruning,
lease renegotiations, an office closure, and systems and IT integrations.
Further, our current staff levels are just 11 full time employees versus 77 in
May. We made difficult decisions that reflect our approach of methodically
partnering with outsourced specialists in order to scale our businesses while
emphasizing variable, controllable costs over fixed costs. While reducing
revenues in the short-term, we believe the results down the road will
demonstrate how we've shifted our resources to the most promising
opportunities while making our business more efficient and effective.

Second, where are we going? While improving our efficiency, we've also been
focused on our effectiveness and growth. We've invigorated our management team
with a few key, critical additions. We've rejuvenated our brands and even the
familiar logos of As Seen on TV and eDiets. We've built a cloud-based digital
and mobile foundation that will scale as our brands and anticipated sales
expand. And we expect to maximize our core assets including the high consumer
awareness of our brand, traffic to our market-leading As Seen on TV website,
the thousands of inventor ideas we receive each year, and the universe of
celebrities and brands who approach us regularly looking for live shopping and
product partners to expand their reach and audiences. Each of these
independently represents great opportunity.

Let me outline a few more specific examples of our efforts in three essential
areas.

Our digital platform and brand awareness. We're blessed to have a number of
well-known brands such as As Seen on TV and eDiets. We are moving our distinct
brands to cloud-based IT and social platforms to reduce costs while improving
our reach and visibility especially when consumers are increasingly purchasing
via mobile devices. In fact, over 50% of our eDiets visitors now use mobile
devices to reach us. We believe there's a stronger future for eDiets as a
primarily digital business, and we are repositioning our offering closer to
its original goal of supporting busy, active folks looking for personalized
diet plans. We expect to launch a new, significantly different eDiets over the
next few weeks. Further, our As Seen on TV website is by far the leading
destination for As Seen on TV shoppers. Google reports over 800,000 As Seen
on TV related term searches each month! We can capture a much greater portion
of that growing consumer interest and demand. Behemoth retailers such as
Walmart, CVS, Walgreens and Target are all expanding their retail presences in
the As Seen on TV category, but our site still remains the leading online
destination. Our challenge now is to supply the organic demand and improve the
monetization of this valuable asset, and we expect to do so.

Inventors and crowdfunding. We literally receive thousands of new product
ideas each year from determined inventors. This fact will enable us to develop
a large roster of licensed products that we will build with our partners into
a portfolio of products in a number of categories. And, as you may have seen
in leading publications such as the Wall Street Journal, Washington Post,
Entrepreneur, and TheStreet.com, we're soon to launch our own crowdfunding
platform specifically tailored to the As Seen on TV marketplace. Our platform
will allow consumers to pre-purchase selected products they love and want to
have. This should expand our already strong brand position in the entrepreneur
and inventor worlds, shorten product-testing periods, and reduce the capital
required to develop new products. It's a privilege to work alongside these
amazing inventors. Our new crowdfunding platform, expected to launch this
fall, should help us extend our visibility and lead in this sector.

TV Goods and live shopping. We've continued to build upon our superior
relationships with live shopping organizations such as QVC, HSN, and ShopNBC,
both in the US and abroad. Live shopping attracts consumers as well as product
owners and celebrities eager to join in on the selling fun. Recently, our
product line TRUHair was a featured sellout on QVC Italy. Live shopping is
truly changing the way consumers seek and buy products worldwide. In essence,
it has become entertainment commerce. Our past success and our experienced
team provide an increasing number of opportunities in this channel. There is a
natural flow of partners seeking to work with TV Goods, our live shopping
division, and this has become more pronounced as Reality TV has spawned a vast
number of celebrities and their agents from that genre looking to monetize
their fame. TV Goods has a track record of success here and we will build on
it.

I've outlined where As Seen on TV was and where it is now headed as a company.
The past few months have posed some challenges that have largely been
overcome. With our corporate repositioning mostly behind us, an experienced
management team in place, and huge opportunities on the horizon for our
business, we're more than eager to roll out and execute our plans over the
next few months.

Please stay tuned for future announcements from As Seen on TV. In the
meantime, thank you for your ongoing support and for helping us put smiles on
the faces of the consumers we serve.

Sincerely,
Ronald C. Pruett, Jr.
Chief Executive Officer

About As Seen On TV, Inc.
As Seen On TV, Inc. (ASTV) is the leading multichannel distributor of As Seen
On TV products and serves up fun for engaged consumers worldwide. Customers
can find 1,500 products from As Seen on TV in the areas of Household, Kitchen,
Outdoor, Health & Beauty, Fitness, Clothing, Electronics, Toys, Novelty, Pets,
DVDs, and Food. Celebrities and industry experts often endorse As Seen On TV
products for their inventive nature and utility. For more information, please
visit www.AsSeenOnTV.com or follow ASTV online at
Facebook.com/OfficialAsSeenOnTV, @AsSeenOnTV on Twitter and
Pinterest.com/AsSeenOnTVHQ.

Cautionary Note and Statement for the Purposes of the Safe Harbor Provisions
of the Private Securities Litigation Reform Act of 1995
The letter to shareholders contains forward-looking statements with respect to
(i) our access to creative inventors, celebrities and product partners, and
the functionality of our multi-channel distribution platform, (ii) our ability
to scale our businesses by shifting our resources to other opportunities,
(iii) the impact on our business of cost-cutting, personnel and resource
allocation decisions, (iv) our ability to take advantage of opportunities,
including our cloud-based digital and mobile foundation, consumer awareness of
our brand, traffic to our websites, inventor ideas we receive and potential
partners interested in working with us, (v) the impact of our planned
crowd-funding platform, and (vi) our ability to successfully develop market
and sell products through direct response, live shopping and over the
internet.Some factors which could possibly affect these forward-looking
statements include (1) our ability to raise additional capital; (2) our
ability to maintain compliance with applicable regulatory requirements; (3)
our ability to attract and retain customers in a profitable manner; (4) our
ability to accurately assess market demand for our products; (5) our ability
to sufficiently increase our revenues and maintain expenses and cash capital
expenditures at appropriate levels; and (6) the state of the credit markets
and capital markets, including the level of volatility, illiquidity and
interest rates. Actual results may differ materially from these expectations,
estimates and projections and are subject to certain risks, uncertainties and
other factors, some of which are beyond our control and difficult to predict.
The foregoing factors (among others) could cause actual results to differ
materially from those set forth in the forward-looking statements. In
accordance with the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, As Seen On TV, Inc. has included in attached
Form 10-K for the fiscal year ended March 31, 2013, cautionary language
identifying other important factors, though not necessarily all such factors,
that could cause future outcomes to differ materially from those set forth in
the forward-looking statements.

SOURCE As Seen On TV, Inc.

Website: http://www.AsSeenOnTV.com
Contact: Eric Willis, DC Consulting, eric@dcconsultingllc.com, +1-407-792-3333
 
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