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Operational Highlights

• Launched Univision NOW, a groundbreaking new direct-to-consumer over-the-top (OTT) service by Univision Communications Inc. (UCI), the leading media company serving Hispanic America. NeuLion provides Univision with a turnkey solution for reaching their target Hispanic audience on as many screens as possible with a great user experience.

• NeuLion announced its new 4K mobile app, which enables consumers to seamlessly play out video content, in up to Ultra HD 4K, captured from their cameras and smartphones, to every connected device. As consumers use more 4K enabled smartphones and cameras from brands including Apple, GoPro, Samsung, Sony, Panasonic and others, playing video captured on these devices on 4K TVs will be significantly easier with the new app.

• As sales of 4K Ultra HDTVs continue to accelerate in the marketplace, NeuLion has secured new agreements with the world's largest suppliers of these products, signing licensing deals with Samsung and LG to embed our NeuLion Streaming SDK in their televisions. This technology will enable and enhance an interactive video experience plus deliver live streaming video 4K 60 frame resolutions on these Internet-connected TV sets, thereby connecting the ecosystem of manufacturers of Ultra HDTVs with content rights holders that have 4K content and user-generated libraries of 4K content.

• NeuLion key performance indicators for 2015 continued to highlight the demand for the company's technology and services. NeuLion delivered 63,000 live events for the 2015 calendar year, an increase of 26% over the prior year, and the number of live events delivered was more than double that of NeuLion's closest competitor. NeuLion video traffic ending the year 2015 was 307 petabytes, representing a 35% growth year over year and with the total 2015 video traffic more than tripling that of the 2012 calendar year.

• NeuLion successfully delivered multiple live NBA games in 4K with BT Sports from The O2 arena in London, and recently made history as the first company to successfully deliver a 4K live stream of a sporting event in the United States. Working with Univision, NeuLion delivered the soccer game between the national teams of Mexico and Senegal, in stunning 4K, from Marlins Park in Miami.

• NeuLion's deployment in Google Chromecast continues to expand as NeuLion partners grow their connected device strategies. NeuLion now powers more than 10 streaming services on Chromecast, including sports apps for the Big Ten Conference, Euroleague, Major League Soccer, NBA, NFL, Tennis Channel, UFC, Univision, World Surf League, and others.

Fourth Quarter Financial Review

As a result of the acquisition of DivX Corporation on January 30, 2015, NeuLion is now reporting revenue for the NeuLion Digital Platform and DivX combined. Because NeuLion expects revenue from the NeuLion Digital Platform to grow faster than revenue from other solutions, management intends to continue to report revenue from the NeuLion Digital Platform as a key performance indicator. The NeuLion Digital Platform combines the previously reported customer categories of Pro Sports, College Sports, and TV Everywhere.

GAAP Results

Total GAAP revenue was $27.8 million for the fourth quarter of 2015 compared to $16.5 million for the previous year's quarter, an increase of $11.3 million, or 68%. The NeuLion Digital Platform had revenue growth of 20% to $19.8 million for the current period, from $16.5 million for the comparable prior period, due to new customer wins and expanded usage from existing customers. DivX and MainConcept revenue was $8.0 million in the fourth quarter of 2015.

Cost of revenue was $5.4 million, or 19% of revenue, for the current period, compared to $4.0 million, or 24% of revenue, for the prior comparable period. The five percentage point improvement was due to a combination of the addition of DivX and MainConcept revenue streams and improved operating costs. Selling, general and administrative expenses, including stock-based compensation, were $13.2 million for the current period, an increase of 65% from $8.0 million for the prior comparable period. Research and development expenses were $5.5 million for the current period, more than double the $2.1 million figure reported in the prior comparable period primarily as a result of increased headcount resulting from the DivX acquisition in January 2015. SG&A and R&D expenses associated with DivX for the fourth quarter of 2015 were $4.2 million and $3.5 million, respectively. Operating income for both the fourth quarters of 2015 and 2014 were $1.8 million. Consolidated net income was $32.8 million, or $0.11 per diluted share, for the current period compared with consolidated net income of $1.6 million, or $0.01 per diluted share, for the prior comparable period. The increase in consolidated net income was primarily driven by a $31.2 million income tax benefit recorded in the current period.

Non-GAAP Results

Non-GAAP revenue increased 68% to $27.8 million from the same period a year ago. Non-GAAP Adjusted EBITDA more than doubled to $8.8 million from $3.5 million for the same period last year, with $3.3 million of the increase due to the acquisition of DivX and $2.0 million coming from organic improvement due to higher revenue and improved cost of revenue as a percentage of revenue, offset by increases in SG&A, excluding stock-based compensation, and R&D expenses. Please refer to the tables accompanying this release for the calculation of Non-GAAP revenue and Adjusted EBITDA.

Use of Non-GAAP Financial Information

In addition to our U.S. GAAP results, this press release also includes disclosure on certain Non-GAAP financial measures, as such term is used by the SEC. NeuLion defines Non-GAAP revenues as GAAP revenues before purchase accounting adjustments as a result of an acquisition. NeuLion defines Adjusted EBITDA as consolidated net income (loss) before interest, income taxes, depreciation and amortization, purchase accounting adjustments, stock-based compensation, acquisition-related expenses, listing-related expenses, gain on revaluation of convertible note derivative, and foreign exchange gain (loss). Adjusted EBITDA is a key measure used by management to evaluate NeuLion's results and make strategic decisions about the company, including potential acquisitions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, NeuLion's presentation of Non-GAAP Revenue and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. This measure does not have any standardized meaning prescribed by U.S. GAAP and therefore is unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with U.S. GAAP.

Pursuant to the requirements of Regulation G, we have provided a reconciliation of Non-GAAP revenue to U.S. GAAP revenue and Adjusted EBITDA to U.S. GAAP consolidated net income/(loss) as an exhibit to this press release.

About NeuLion
NeuLion, Inc. (NLN.TO) offers solutions that power the highest quality digital experiences for live and on-demand content up to 4K on any device. Through its end-to-end technology platform, NeuLion enables digital content management, distribution and monetization for content owners worldwide including the NFL, NBA, World Surf League, Univision Deportes, Euroleague Basketball and others. NeuLion also operates a robust consumer electronics licensing business that has enabled over 1 billion devices worldwide with secure, high-quality video streaming, and delivers a DivX consumer software offering that has been downloaded over 1 billion times. NeuLion's customers include major sports, entertainment and global content companies as well as major consumer electronics manufacturers and software companies. NeuLion is headquartered in Plainview, NY. For more information about NeuLion, visit www.NeuLion.com.

Forward-Looking Statements
Certain statements herein are forward-looking statements and represent NeuLion's current intentions in respect of future activities. Forward-looking statements can be identified by the use of the words "will," "expect," "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. Although the forward-looking statements contained in this release are based upon what management believes to be reasonable assumptions, NeuLion cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and NeuLion assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause NeuLion's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: our ability to derive anticipated benefits from the acquisition of DivX; our ability to realize some or all of the anticipated benefits of our partnerships; general economic and market segment conditions; our customers' subscriber levels and financial health; our ability to pursue and consummate acquisitions in a timely manner; our continued relationships with our customers; our ability to negotiate favorable terms for contract renewals; competitor activity; product capability and acceptance rates; technology changes; regulatory changes; foreign exchange risk; interest rate risk; and credit risk. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in the "Risk Factors" section of NeuLion's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, which is available on www.sec.gov and filed on www.sedar.com.