UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                           FORM 10-KSB

(Mark One)
[X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934.  For the fiscal year ended
     December 31, 1997

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934. [No Fee Required] For the
     transition period from ___________ to ______________

                 Commission file number 0-26828

              FOOD COURT ENTERTAINMENT NETWORK INC.
         (Name of small business issuer in its charter)

          Delaware                        51-0338736            
(State or other jurisdiction of         (I.R.S. Employer
incorporation or organization)          Identification No.) 

                220 East 42nd Street, 16th Floor,
                    New York, New York 10017
                         (212) 983-4500
           (Address, Zip Code and telephone of Issuer)

            Securities registered under Section 12(b)
                   of the Exchange Act:  None
            Securities registered under Section 12(g)
                      of the Exchange Act:
                        (Title of Class)

                              Units
              Series A Common Stock, $.01 par value
                   Redeemable Class A Warrants
                   Redeemable Class B Warrants
                        (Title of Class)

          Check whether the issuer (1) filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act during the
past 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  YES [X] NO [ ]

          Check if disclosure of delinquent filers in response to
Item 405 of Regulation S-B is not contained in this form, and no
disclosure will be contained, to the best of registrant's
knowledge, in a definitive proxy or information statement
incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.  [ ]

          Issuer's revenues for its most recent fiscal year: 
$20,000.

          As of April 23, 1998, there were outstanding 13,642,082
shares of Series A Common Stock and 1,014,309 Shares of Series B
Common Stock.  The aggregate market value of Series A Common
Stock held by non-affiliates was approximately $100,000.(1) 
Series B Common Stock had no market value and must be converted
to Series A to be sold or transferred, except to prior
management.



























________________

          (1)  The aggregate dollar amount of the voting stock
set forth equals the number of shares of the Company's Series A
Common Stock outstanding, reduced by the amount of Series A
Common Stock held by officers, directors, and shareholders owning
in excess of 10% of the Company's Series A Common Stock,
multiplied by the last reported sale price for the Company's
Series A Common Stock on April 20, 1998.  The information
provided shall in no way be construed as an admission that any
officer, director or 10% shareholder in the Company may or may
not be deemed an affiliate of the Company or that he/it is the
beneficial owner of the shares reported as being held by him/it,
and any Such inference is hereby disclaimed.  The information
provided herein is included solely for recordkeeping purposes of
the Securities and Exchange Commission.
<PAGE>
 
PART I

ITEM 1 - DESCRIPTION OF BUSINESS

THE COMPANY

Organization

          Food Court Entertainment Network, Inc. ("The Company")
was organized in February, 1992 to establish a national
television network to broadcast high quality television
programming called "Cafe USA" to large, enclosed shopping mall
food courts ("Food Courts") throughout the country.  The
Company's concept of providing advertising through broadcast
directly into mall Food Courts was predicated on its belief that
shopping and product decisions by consumers are often made at the
point-of-purchase.

          The Company was initially incorporated in the State of
Delaware on February 12, 1992 under the name Advanced Media, Inc. 
In April, 1992, the Company changed its name to AppleBell
Communications, Inc. and then in October, 1993 to Food Court
Entertainment Network, Inc.  The Company's executive offices are
located at 220 East 42nd Street, 16th Floor, New York, New York
10017 and its telephone number is (212) 983-4500.

          On October 16, 1995, the Company closed on its initial
public offering (the "Public Offering") of 2,800,000 units
consisting of one share of Series A Common Stock, one Class A
Warrant and one Class B Warrant (the "IPO Units") to D.H. Blair
Investment Banking Corp. (the "Underwriter").  On November 9,
1995, the Company closed the offering of an additional 420,000
IPO Units to the Underwriter pursuant to the Underwriter's
overallotment option.  On November 14, 1996, the Company closed a
private offering to accredited investors ("Private Offering") of
90 Units ("Private Units") for $100,000 per Private Unit, each
Private Unit consisting of 31,746 IPO Units.  See "Management's
Discussion and Analysis of Financial Condition and Results of
Operations."

Restructure of the Company

          The Company, despite its best efforts, has been unable
to sell its Cafe USA advertising time to advertisers.  The
Company has, during 1997 and through January 1998, sought a joint
venture partner or strategic investor to advance the business
concept.  However, management was unable to attract a suitable
investor or partner.

          Management began testing alternative methods of
salvaging the remaining value of the Company for its
shareholders.  In order to retain value in the business
enterprise, the Company maintained the operation of its Cafe USA
network in 20 malls and continued to supply updated programming
to the malls each week.  The Company sought a purchaser for its
assets and Cafe USA television network and concurrently began to
look for operating companies which were seeking a NASDAQ listed,
publicly traded company in which to operate, finance and grow an
existing operating business enterprise.

          On April 23, 1998, the Company entered into a Purchase
and Sale Agreement with Prime Spot Media USA, Inc. ("Prime Spot
USA"), a wholly-owned subsidiary of Prime Spot Media, Inc., a
British Columbia Company, providing for the sale of substantially
all of the assets of the company for $450,000.  Upon signing the
agreement, Prime Spot USA deposited the entire purchase price in
escrow with its legal counsel.  Simultaneous with the execution
of the Purchase and Sale Agreement,Prime Spot USA and the Company
entered into a subcontract (the "Subcontract") which provides
that Prime Spot USA will, on behalf of the Company, operate its
Cafe USA network in all 20 Food Courts, maintain all equipment
and provide programming for the television network.  In
consideration for Prime Spot USA management services, Prime Spot
is entitled to all net revenues from the sale of advertising less
payments to malls pursuant to the Company's contracts with each
individual mall.  Closing will occur at such time as the Company
obtains necessary approval to transfer title to the assets.  

          The Company is presently seeking to acquire or merge
with an operating business which desires to be a publicly-held
company.  There is no assurance that the Company will be
successful in completing such a transaction.  On April 17, 1998,
the Company received a notice from NASDAQ, that because it failed
to meet several of the required NASDAQ minimum maintenance
standards, effective April 24, 1998, its securities would no
longer be listed on the NASDAQ Small Cap Market.  The Company
appealed the delisting and, as a result of the appeal, the
delisting was automatically stayed.  A hearing is scheduled for
May 28, 1998.  If the Company fails to be successful in its
appeal, it will lose its NASDAQ Small Cap listing.  Unless the
Company can negotiate a transaction with an operating company
prior to the date of the appeal hearing, it is likely the Company
will lose its NASDAQ listing.  Even if the Company is successful
in concluding a transaction with an operating business prior to
the date of the appeal hearing, there is no assurance the Company
will be able to maintain its NASDAQ Small Cap listing. 

          In the event the Company is unable to acquire or merge
with an operating business, the Company will either be required
to seek protection from its creditors or negotiate its
outstanding liabilities and dissolve the company.

The Exchange Offer

          On August 25, 1997, the Company offered to exchange
0.6 shares of Series A Common Stock for each issued and
outstanding Class A Warrant and 0.4 shares of Common Stock for
each issued and outstanding Class B Warrant (the "Exchange
Offer").  The Exchange Offer closed on October 27, 1997.  As a
result of the Exchange Offer, 7,031,814 Class A Warrants were
exchanged for 4,219,088 shares of Series A Common Stock and
5,719,347 Class B Warrants were exchanged for 2,287,739 shares of
Series A Common Stock.  The purpose of the Exchange Offer was to
decrease the dilutive effect of the large number of outstanding
Class A and Class B Warrants on the Company's capital structure,
which management believed was an impediment to obtaining
additional financing or entering into strategic alliances.  The
Company believes that the conversion of Warrants to Common Stock
under the Exchange Offer has given the Company the opportunity to
restructure its business and possibly retain some value of the
investment of its shareholders.  There remains issued and
outstanding 1,762,000 Class A Warrants and 1,382,000 Class B
Warrants.

Employees

          The Company currently has 2 full time employees,
including 1 executive officer.  The Company entered into an 
employment contract for a term of three years effective
October 1, 1996 with its Chief Executive Officer.  See
"Management - Employment Agreements."

ITEM 2 - PROPERTY

          Effective April 30, 1998, the Company has terminated
its lease for office space for its executive and administrative
staff at the 220 East 42nd Street, 16th Floor, New York, New York
10017 but is remaining on the premises on a month-to-month basis,
as needed.    

ITEM 3 - LEGAL PROCEEDINGS

          An action has been filed against the Company by Blank
Rome Comisky & McCauley, LP for non-payment of legal fees in the
amount of $30,127.93.  The liability is and has been reflected in
the Company's financial statement.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

          Not applicable. 

PART II

ITEM 5 - MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Market Information

          The Company's Series A Common Stock, Class A Warrants,
Class B Warrants and Units (one share of Series A Common Stock
one Class A Warrant and one Class B Warrant) have been included
on the NASDAQ Small Cap Market under the symbols FCENA, FCENW,
FCENZ, and FCENU, respectively, since October 11, 1995.  The
Company's Series B Common Stock is not publicly traded and is
held exclusively by former management of the Company.  As a
result of the completion of the Exchange Offer on October 26,
1997, in which approximately 85% of the outstanding Class A
Warrants and Class B Warrants were exchanged for Series A Common
Stock, the trading volume in the Class A and Class B Warrants was
substantially reduced.  The Company therefore requested that
NASDAQ delist its Class A Warrants (FCENW) and Class B Warrants
(FCENZ).  Similarly, the number of Units available to be traded
was substantially reduced upon completion of the Exchange Offer. 
As of April 16, 1998, the Company requested that NASDAQ delist
its Units (FCENU).  Accordingly, as of the date hereof, only
shares of the Company's Series A Common Stock (FCENA) are being
traded on the NASDAQ Small Cap Market.  The following table sets
forth the high asked and low bid information for the Units,
Series A Common Stock, Class A Warrants and Class B Warrants as
reported on the NASDAQ Small Cap Market for the last quarter of
1995, each quarter of 1996 and 1997 and for the period from
January 1, 1998 to March 31, 1998.  Market quotations reflect
inter-dealer prices, without retail mark-up, mark-down or
commission and may not represent actual transactions.

<TABLE>
<CAPTION>
               Security                        High       Low 
        <S>                                   <C>       <C>
        Units
          1998
            First Quarter ...............     $  1/8    $  1/64
          1997
            First Quarter ...............      6 7/8     2 1/4
            Second Quarter ..............      4 5/8     2    
            Third Quarter ...............      2 3/32      5/8
            Fourth Quarter ..............        5/8       1/64
          1996
            First Quarter ...............      6 3/4     5    
            Second Quarter ..............      9         5 1/8
            Third Quarter ...............      9 1/2     3    
            Fourth Quarter ..............      6 9/16    3     
          1995
            Fourth Quarter ..............      7 3/8     5

        Series A Common Stock
          1998
            First Quarter ...............        1/16      1/64
          1997
            First Quarter ...............      4 3/16    1 1/8
            Second Quarter ..............      1 3/4       7/8
            Third Quarter ...............      1 5/16      1/4
            Fourth Quarter ..............        5/16      1/64
          1996
            First Quarter ...............      4 1/2     2 1/2
            Second Quarter ..............      5 7/8     2 3/4
            Third Quarter ...............      5 3/4     2 1/2
            Fourth Quarter ..............      3 5/8     1 1/2
          1995
            Fourth Quarter ..............      5         2 1/2

        Class A Warrants
          1998
            First Quarter ...............      N/A       N/A  
          1997
            First Quarter ...............      1 3/4       1/2
            Second Quarter ..............      1           15/32
            Third Quarter ...............        19/32     1/8
            Fourth Quarter ..............        1/8       1/32
          1996
            First Quarter ...............      1 7/8     1    
            Second Quarter ..............      2 3/4     1      
            Third Quarter ...............      2 3/4     1    
            Fourth Quarter ..............      2           7/8
          1995
            Fourth Quarter ..............      1 7/8     1 1/8

        Class B Warrants
          1998
            First Quarter ...............      N/A       N/A
          1997
            First Quarter ...............      1 3/4       1/2
            Second Quarter ..............      1           15/32
            Third Quarter ...............        19/31     1/8
            Fourth Quarter ..............        1/8       1/3
          1996
            First Quarter ...............      1 1/2       1/2
            Second Quarter ..............      2           1/2  
            Third Quarter ...............      2 1/8     1 1/8
            Fourth Quarter ..............      2           7/8
          1995
            Fourth Quarter ..............      1 1/2       1/2
</TABLE>

Holders

          On May 1, 1998 there were 402, 28 and 24 holders of
record of Series A Common Stock, Class A Warrants and Class B
Warrants, respectively and 6 holders of Series B Common Stock.

Dividends

          The Company has not paid dividends to its common
stockholders since its inception and does not anticipate paying
any dividends to its stockholders in the foreseeable future.  The
Company currently intends to retain all earnings, if any, for use
in the preservation of the Company's assets.

Recent Cancellations of Certain Warrants and Unit Purchase
Options 

          D.H. Blair Investment Banking Corp. ("D.H. Blair")
received as part of its compensation for investment banking
services provided to the Company in connection with its IPO on
October 15, 1995, options to purchase Units ("Unit Purchase
Options") at an exercise price of $6.50.  D.H. Blair received an
additional 999,000 Unit Purchase Options with an exercise price
of $3.15 in connection with the Company's Private Placement of
Units on November 14, 1996.  Effective December 30, 1997,
D.H. Blair canceled and terminated all of its Unit Purchase
Options.

          On December 16, 1996, the Company entered into a
financial advisory agreement with Furman Selz LLC ("Furman
Selz"), a New York investment banking firm.  Pursuant to the
agreement Furman Selz was to provide financial advisory services
to the Company for a period of approximately 18 months.  Furman
Selz received warrants to purchase 401,321 shares of Series A
Common Stock, which is equal to five percent of the outstanding
shares of Series A and Series B Common Stock, at an exercise
price of $2.00 per share.  On or about August 1, 1997, Furman
Selz canceled and terminated all of its Warrants.  

ITEM 6 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Results of Operations

          The following discussion and analysis should be read in
conjunction with the financial statements and notes thereto
appearing elsewhere in this Report.  Throughout 1997, the Company
expanded its network into nine new malls and continued to produce
new programming for the Cafe USA Network.  At the end of 1997,
the Company continued with production of programming but ceased
further expansion.  The Company, which had been a development
stage company, is no longer operating.  Accordingly, the Company,
while maintaining the operation of its Cafe USA network in twenty
malls and continuing to supply updated programming to the malls
each week, sought a purchaser for its assets.  On April 23, 1998
the Company entered into an agreement to sell substantially all
of its assets for $450,000.  

          As a result of the above, effective December 31, 1997,
the Company changed its basis of accounting from the going
concern basis to a liquidation basis.  In connection with such a
change in accounting basis, the Company has reduced the carrying
value of its assets by approximately $2,017,000 to reflect their
sale price and has accrued an obligation of $263,000 under an
existing employment agreement.  As a result, at December 31,
1997, the Company had net liabilities in liquidation of $305,000. 
The Company had an accumulated deficit immediately preceding its
change in basis of accounting of $21,877,000.  

          The Company has received only limited revenues.  The
Company's principal expenses from its inception through
December 31, 1997 have been salaries and payments to consultants
($8,221,000), production costs for Cafe USA programming
($4,187,000) and advertising/marketing expenses ($1,513,000). 
The Company invested approximately $4,013,000 in capital
equipment through December 31, 1997.  Additional funds were spent
substantially on general and administrative costs and financing
fees and expenses.  The Company's net liabilities in liquidation
have continued to increase.

          The Company has entered into a Purchase and Sale of
Assets Agreement on April 23, 1998 to sell all of its assets in
connection with the Cafe USA Network to Prime Spot USA for
$450,000.  The Company intends to close on the transaction at
such time as it obtains necessary corporate approval to do so. 
The Company is seeking to merge with or acquire an operating
business which is seeking to become a publicly-held entity.  If
it fails to do so, the Company will be required to seek
protection from its creditors or negotiate its outstanding
liabilities and dissolve the Company.

Liquidity and Capital Resources

          As of December 31, 1997, the Company had net
liabilities in liquidation of $305,000.  The Company had financed
its operation almost exclusively through three private placements
of securities, bank loans and a public offering, including
$2,292,500 through the Preferred Stock Unit Offering, the Bridge
Financing of $2,250,000 of Bridge Notes, bank loans of
approximately $1,086,000, the Public Offering of approximately
$16,800,000 and the Private Offering in November, 1996 of
$9,000,000.

          The Company has an employment contract with one
executive officer which provides for salary in 1998 of
approximately $150,000.  The Company has terminated its lease
agreement for its offices.  The Company remains on a month-to-
month basis at a rental to be negotiated. 

          The Company has entered into a settlement agreement
with a former director and officer of the Company dated
October 12, 1993 regarding any claims he had or may have had with
respect to continued employment with the Company and rights to
acquire additional securities of the Company for $200,000.  The
entire remaining unpaid balance of the $200,000 was due
December 1, 1997.  Interest has accrued on such obligation at the
prime rate commencing January 1, 1996 and was to be paid
quarterly thereafter.  The principal balance plus interest as of
March 31, 1998 was $240,000.  In addition to the above, the
settlement agreement provided for the purchase by the former
director and officer from the Company of 11,250 shares of the
Company's Class B Common Stock at a price of $.01 per share and
the payment of consulting fees for services provided at the
request of the Company.

          The Company has agreed not to solicit warrant exercises
other than through the Placement Agent.  Upon any exercise of the
Class A or Class B Warrants the Company will pay the Placement
Agent a fee of 5% of the aggregate exercise price, if (i) the
market price of the Company's Series A Common Stock on the date
the warrant is exercised is greater than the then exercise price
of the warrants; (ii) the exercise of the warrant was solicited
by a member of the National Association of Securities Dealers,
Inc.; (iii) the warrantholder designates in writing that the
exercise of the Warrant was solicited by a member of the National
Association of Securities Dealers, Inc. and designates in writing
the broker-dealer to receive compensation for such exercise;
(iv) the Warrant is not held in a discretionary account;
(v) disclosure of compensation arrangements was made both at the
time of the Private Offering and at the time of exercise of the
warrants; and (vi) the solicitation of exercise of the warrant
was not in violation of Rule 10b-6 promulgated under the Exchange
Act.

ITEM 7 - FINANCIAL STATEMENTS


INDEPENDENT AUDITORS' REPORT

Board of Directors and Stockholders
Food Court Entertainment Network, Inc.
Queens, New York

We have audited the accompanying statement of net liabilities in
liquidation of Food Court Entertainment Network, Inc. as of
December 31, 1997, and the related statement of changes in net
assets (liabilities) in liquidation (each on a liquidation basis)
on December 31, 1997.  In addition, we have audited the
statements of operations, changes in stockholders' equity and
cash flows (each on a going concern basis), for the years ended
December 31, 1997 and 1996.  These financial statements are the
responsibility of the Company's management.  Our responsibility
is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.  An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation.  We believe that
our audits provide a reasonable basis for our opinion.

As discussed in Note A to the financial statements, subsequent to
December 31, 1997 the Company entered into an agreement pursuant
to which it will sell substantially all of its assets and has
ceased its operations.  As a result, the Company has changed its
basis of accounting effective as of December 31, 1997 from a
going concern basis to a liquidation basis.

In our opinion, the financial statements enumerated above present
fairly, in all material respects, the net liabilities in
liquidation of Food Court Entertainment Network, Inc. as of
December 31, 1997, the changes in its net assets (liabilities) in
liquidation on December 31, 1997 and the results of its
operations and its cash flows for the years ended December 31,
1997 and 1996 in conformity with generally accepted accounting
principles applied on the bases described in the preceding
paragraph.

Richard A. Eisner & Company, LLP
New York, New York
April 1, 1998

With respect to Note A
April 23, 1998
<PAGE>
FOOD COURT ENTERTAINMENT NETWORK, INC.

Statement of Net Liabilities in Liquidation
December 31, 1997

ASSETS

Cash and cash equivalents                            $   284,000
Prepaid rent                                              21,000
Fixed assets, at realizable value                        450,000

                                                         755,000

LIABILITIES
Accounts payable                                         144,000
Accrued payroll                                           75,000
Other accrued expenses                                   344,000
Due to former employee                                   234,000
Obligation under employment contract                     263,000

Net (liabilities) in liquidation                     $  (305,000)



Statement of Changes in Net Assets (Liabilities)
in Liquidation On December 31, 1997

Net assets in liquidation - beginning                $ 1,975,000
Write down of fixed assets to estimated
  realizable value                                    (2,017,000)
Accrual of obligation under employment contract         (263,000)

Net (liabilities) in liquidation - end               $  (305,000)
<PAGE>
FOOD COURT ENTERTAINMENT NETWORK, INC.

Statements of Operations
(going concern basis)


                                         Year Ended December 31, 
                                          1997           1996    

Advertising revenue                   $    20,000    $   122,000

Operating expenses:
  Sales and marketing                     601,000        561,000
  Programming                           1,227,000      1,314,000
  Network costs                         1,873,000      1,229,000
  General and administrative
    expenses                            2,599,000      2,339,000
  Development costs                                    1,104,000

                                        6,300,000      6,547,000

Operating loss                         (6,280,000)    (6,425,000)

Other (income) expenses:
  Interest expense                                        16,000
  Interest and other (income)             (93,000)      (171,000)

                                          (93,000)      (155,000)

Net loss                              $(6,187,000)   $(6,270,000)

Net loss per share - basic and
  diluted                             $      (.77)   $     (1.32)

Number of common shares used in
  computation                           8,081,000      4,739,000
<PAGE>
<TABLE>
<CAPTION>
FOOD COURT ENTERTAINMENT NETWORK, INC.

Statements of Changes in Stockholders' Equity
(going concern basis)

                                              Common Stock                 Additional                      Series B
                                   Series A              Series B           Paid-in     Accumulated    Treasury Stock 
                               Shares     Amount     Shares     Amount      Capital       Deficit      Shares   Amount    Total  
<S>                          <C>         <C>       <C>         <C>       <C>           <C>            <C>       <C>
Balance - January 1, 1996     3,794,000  $ 38,000  1,146,000   $11,000   $15,076,000   $ (9,420,000)  (20,000)    $0   $ 5,705,000
Common stock issued as
  consideration for
  programming                   250,000     2,000                            698,000                                       700,000
Issuance of stock and
  warrants for cash in
  October at $3.15 per share
  in connection with private
  placement (less expenses
  of $1,341,000)              2,857,000    29,000                          7,630,000                                     7,659,000
Conversion of B shares           13,000              (13,000)                                                                    0
Granting of common B shares 
  to former employee as a
  form of settlement                                                          28,000                   10,000               28,000
Issuance of warrants as
  consideration for
  consulting services                                                        328,000                                       328,000
Net loss for the year                                                                    (6,270,000)                    (6,270,000)
Balance - December 31, 1996   6,914,000    69,000  1,133,000    11,000    23,760,000    (15,690,000)  (10,000)     0     8,150,000
Exercise of warrants              3,000                                       15,000                                        15,000
Conversion of B shares          119,000     1,000   (119,000)   (1,000)                                                          0
Issuance of A shares as
  consideration for
  consulting services           100,000     1,000                            149,000                                       150,000
Issuance of A shares in
  connection with exchange
  of Class A and B warrants   6,506,000    65,000                            (65,000)                                            0
Cancellation of warrants                                                    (153,000)                                     (153,000)
Net loss for the year                                                                    (6,187,000)                    (6,187,000)

Balance - December 31, 1997  13,642,000  $136,000  1,014,000   $10,000   $23,706,000   $(21,877,000)  (10,000)    $0   $ 1,975,000
                             ==========  ========  =========   =======   ===========   ============   =======     ==    ===========
</TABLE>
<PAGE>
FOOD COURT ENTERTAINMENT NETWORK, INC.

Statements of Cash Flows
(going concern basis) 

                                        Year Ended December 31,  
                                          1997           1996    
Cash flows from operating
  activities:
  Net loss                            $(6,187,000)   $(6,270,000)
  Adjustments to reconcile net loss
    to net cash used in operating
    activities:
    Depreciation and amortization         660,000        390,000
    Loss on disposal of equipment                         26,000
    Write-off of transmission
      system in progress                  205,000
    Common stock issued as
      consideration for compensation      150,000         28,000
    Common stock issued as
      consideration for programming                      700,000
    Warrants issued as consideration
      for compensation                    161,000         10,000
    Changes in:
      Other assets                        199,000       (211,000)
      Accrued expenses and other
        liabilities                      (500,000)       367,000

        Net cash used in operating
          activities                   (5,312,000)    (4,960,000)

Cash flows from investing activities:
  Purchase of equipment                  (918,000)    (1,392,000)

Cash flows from financing activities:
  Net proceeds from sale of units of
    common stock and warrants                          7,659,000
  Proceeds from exercise of warrants       15,000               

        Net cash provided by
          financing activities             15,000      7,659,000

Net increase (decrease) in cash and
  cash equivalents                     (6,215,000)     1,307,000
Cash and cash equivalents at
  beginning of period                   6,499,000      5,192,000

Cash and cash equivalents at end
  of period                           $   284,000    $ 6,499,000

Supplemental schedule of noncash
  financing activities:
  Warrants issued (canceled) in
    connection with consulting
    arrangement                       $  (153,000)   $   323,000
  Warrants exchanged for common
    shares                                 65,000
<PAGE>
FOOD COURT ENTERTAINMENT NETWORK, INC.

Notes to Financial Statements
December 31, 1997

Note A - The Company and Basis of Presentation

Food Court Entertainment Network, Inc. (the "Company") is a
Delaware corporation which was incorporated on February 12, 1992. 
The Company's plan was to establish a national television network
to broadcast a high quality television program called Cafe USA,
specifically to large, enclosed shopping mall food courts across
the United States.  The Company's activities have consisted
primarily of designing, developing and producing its Cafe USA
programming, establishing contacts and entering into agreements
with potential advertisers and mall operators, producing and
evaluating market tests of its programming, developing a system
for delivery of programming into mall food courts, engaging
management, employees and consultants for operations, including
marketing, installing and operating Cafe USA in various mall food
courts.

The Company, which had been a development stage company, has been
unable to market its Cafe USA network to advertisers, has
incurred substantial losses and has been unable to obtain
additional financing.  Accordingly, the Company, while
maintaining the operation of its Cafe USA network in twenty malls
and continuing to supply updated programming to the malls each
week, sought a purchaser for its assets and on April 23, 1998 the
Company entered into an agreement, which may be subject to
stockholder approval, to sell substantially all of its assets for
$450,000.  As a result of the above, effective December 31, 1997,
the Company changed its basis of accounting from the going
concern basis to a liquidation basis.  In connection therewith,
the Company has written down the carrying value of its assets
subject to the sales agreement to their selling price and has
also written off certain other assets and has accrued a liability
for an obligation under an existing employment agreement.  These
adjustments are reflected in the statement of changes in net
assets (liabilities) in liquidation.

Note B - Summary of Significant Accounting Policies (Going
Concern Basis)

[1]  Depreciation:

     Depreciation has been provided using the straight-line
     method over the five-year estimated useful life of the
     assets.

[2]  Revenue recognition:

     Revenue has been recognized by the Company when media
     placements appeared.

[3]  Development costs:

     Development and start-up costs expended prior to
     commencement of operations have been expensed as incurred.

[4]  Programming costs:

     The Company charges programming costs to expense as they are
     incurred.

[5]  Use of estimates:

     The preparation of financial statements in conformity with
     generally accepted accounting principles requires management
     to make estimates and assumptions that affect the reported
     amounts of assets and liabilities and disclosure of
     contingent assets and liabilities at the date of the
     financial statements and the reported amounts of revenues
     and expenses during the reporting period.  Actual results
     could differ from those estimates.

[6]  Concentration of credit risk:

     The Company maintains all of its cash and cash equivalents
     in one commercial bank.

[7]  Stock-based compensation:

     The Company accounts for stock-based employee compensation
     under Accounting Principles Board Opinion ("APB") No. 25,
     "Accounting for Stock Issued to Employees," and related
     interpretations.

[8]  Income taxes:

     The Company accounts for income taxes using the liability
     method as prescribed by SFAS No. 109, "Accounting for Income
     Taxes."  Deferred tax assets and liabilities are determined
     based on differences between financial reporting and tax
     bases of assets and liabilities, and are measured using the
     enacted tax rates and laws that will be in effect when the
     differences are expected to reverse.  The measurement of
     deferred tax assets is reduced, if necessary, by a valuation
     allowance for any tax benefits which are not expected to be
     realized.  The effect on deferred tax assets and liabilities
     of a change in tax rates is recognized in the period that
     such tax rate changes are enacted.

[9]  Loss per share:

     The Company calculates its loss per share under the
     provisions of SFAS No. 128, "Earnings Per Share."  SFAS
     No. 128 requires a dual presentation of "basic" and
     "diluted" loss per share on the face of the statements of
     operations.  Basic loss per share is computed by dividing
     the loss by the weighted average number of shares of common
     stock outstanding during each period exclusive of the
     Series B shares in escrow.  Diluted loss per share does not
     include the effect, if any, from the potential exercise of
     stock options and warrants as the effect thereof is
     antidilutive.

Note C - Income Taxes

At December 31, 1997, the Company has available net operating
loss carryforwards of approximately $15,300,000, which expire at
various dates through 2012.  Under Section 382 of the Internal
Revenue Code of 1986, as amended, the Company is subject to an
annual limitation on the utilization of its net operating loss
carryforwards because an ownership change of more than 50% has
occurred.

Prior to the commencement of operations the Company was required
to treat certain costs as start-up costs for tax purposes. 
Accordingly, development and general and administrative expenses
were not deducted for tax purposes until April 1996.  The
Company's financial statements do not reflect a benefit from its
net operating loss carryforwards or from deductible temporary
differences, because a valuation allowance, which increased by
approximately $3,400,000 and $3,558,000 for the years ended
December 31, 1997 and 1996, respectively, has been provided
against the deferred tax asset.  The valuation allowance has been
provided as it is more likely than not that the tax benefits will
not be utilized.  In addition, the Company is subject to an
annual limitation under Section 382 of the Internal Revenue Code. 
At December 31, 1997 the principal components of deferred tax
assets (liabilities) are as follows:

     Net operating loss carryforwards           $ 6,100,000
     Start-up costs                               2,600,000
     Other                                          100,000
     Write down of fixed assets                     800,000
     Obligation under employment contract           100,000

                                                  9,700,000
     Valuation allowance                         (9,700,000)

     Net deferred tax                           $         0

Note D - Stockholders' Equity

[1]  Capital stock:

     At December 31, 1997, there were 636,115 shares of
     outstanding Series B common stock held in escrow to be
     released based on meeting certain conditions.  These
     conditions will likely not be met, in which case the escrow
     shares will be canceled or deposited in the Company's
     treasury.

     The holders of Series A shares are entitled to one vote per
     share.  The holders of the Series B shares are entitled to
     five votes per share.  The Series B stock is held by the
     chairman of the Board and former management of the Company.

[2]  Stock options:

     (a)  Consultants and advisors stock option plan:

          During 1994, the Board of Directors and the
          stockholders of the Company approved a stock option
          plan (the "Plan") which provides for the granting of
          options to purchase up to 100,000 shares of Series A
          common stock.  Consultants and advisors of the Company
          are eligible to receive nonqualified options to
          purchase shares under the Plan.  Options granted under
          the Plan are exercisable for a period of four years
          from the date of grant at an exercise price as
          determined by the Company's compensation committee, of
          not less than $2.00 per share.  At December 31, 1997
          there were no options available to be granted under the
          Plan.

     (b)  Employee stock option plan:

          In August 1995, the Board of Directors and the
          stockholders approved the Company's Employee Stock
          Option Plan (the "Employee Plan"), for the benefit of
          officers and key employees of the Company or any of its
          current or future parents or subsidiaries.  The
          Employee Plan, as amended, provides that options to
          purchase an aggregate of 2,000,000 shares of the
          Company's Series A common stock may be granted pursuant
          to the Employee Plan.  Options granted under the
          Employee Plan may be incentive stock options or
          nonqualified stock options.  The term, the exercise
          price, and the rate at which options may be exercised
          will be determined by the Company's Board of Directors
          or by the compensation committee.  Unexercised options
          expire five to ten years after the date of grant.

          During the year ended December 31, 1996 options to
          purchase 100,000 shares previously granted under the
          Employee Plan were canceled and options to purchase
          503,000 shares of the Company's Series A common stock
          were granted to employees.

          In October 1996 the Company agreed to issue options to
          purchase 1,000,000 shares of Series A common stock in
          connection with employment agreements with its chairman
          and president and the resignation of its former
          president.  Options for all of these shares are subject
          to vesting provisions, 900,000 of which are based on
          the Company's attaining specified earnings thresholds. 
          There will be a charge to operations equal to the
          difference between the exercise price and the fair
          value of the stock on the date that these options vest.

          During the year ended December 31, 1997, options to
          purchase 308,000 shares of Series A common stock were
          granted to employees under the Employee Plan.

     (c)  The Director Plan:

          In July 1996, the stockholders of the Company approved
          the Director Plan, pursuant to which the Company
          granted to seven directors options to purchase all of
          the 630,000 shares of Series A common stock available
          under such plan at an exercise price of $5.00.  In
          October 1996, 180,000 options were forfeited due to the
          resignation of two members of the Board of Directors. 
          During the year ended December 31, 1997 options to
          purchase 90,000 shares of Series A common stock were
          granted to a director.

     (d)  Other stock options: 

          The Company has outstanding options to purchase 120,000
          shares of its Series A common stock which were granted
          to directors prior to the adoption of its stock option
          plans.

          The Company applies APB No. 25 and related
          interpretations in accounting for its options. 
          Accordingly, no compensation cost has been recognized
          for its stock option grants to employees and directors. 
          However, the Company recognized compensation of
          approximately $10,000 and $160,000 in 1996 and 1997,
          respectively, related to options and warrants granted
          to others.

     As discussed in Note A, subsequent to December 31, 1997 the
     Company entered into an agreement pursuant to which it will
     sell substantially all of its assets and has ceased its
     operations.  Therefore the disclosures required by SFAS
     No. 123 of net loss and net loss per share and the weighted
     average fair value of options granted during each year, in
     light of the Company's adoption of a liquidation basis of
     accounting, are not deemed material to the Company's
     financial statements.  Accordingly, such items have not been
     disclosed for either of the years presented. 

     A summary of the status of the Company's stock options as of
     December 31, 1996 and 1997, and changes during the years
     then ended is presented below:

                              1997                   1996        
                                 Weighted-              Weighted-
                                  Average                Average
                                 Exercise               Exercise
Fixed Options          Shares      Price      Shares      Price  

Outstanding at
  beginning of year  2,093,000     $2.81      311,000     $3.42
Granted                398,000      2.57    2,363,000      3.03
Canceled                                    (390,000)     3.64
Forfeited             (418,000)     3.51     (191,000)     4.87

Outstanding at end
  of year            2,073,000      2.62    2,093,000      2.81

Options exercisable
  at year-end          899,000      2.93      778,000      2.92

     The following table summarizes information about fixed stock
     options outstanding at December 31, 1997:

<TABLE>
<CAPTION>
                          Options Outstanding            Options Exercisable  
                    Number       Weighted-                Number
                  Outstanding    Average    Weighted-  Exercisable   Weighted-
                      at        Remaining    Average        at        Average
    Range of     December 31,  Contractual   Exercise  December 31,   Exercise
Exercise Prices      1997          Life       Price        1997        Price  
<S>              <C>           <C>          <C>        <C>           <C> 
 $1.75 - $2.83     1,633,000        8         $2.03       609,000      $2.08
 $3.87 - $5.00       440,000        8          4.81       290,000       4.71
                   2,073,000        8         $2.62       899,000      $2.93
</TABLE>

     Upon a change in control of the Company, a significant
     number of options which are outstanding, but unexercisable
     at December 31, 1997 may become exercisable.

[3]  Warrants:

     Warrants outstanding and exercisable at December 31, 1997
     are summarized as follows:

                               Shares
                             Covered by   Exercise
                              Warrants      Price     Expiration 

Class A warrants (i)         1,762,000      $5.13    October 2000
Class B warrants             1,382,000       6.85    October 2000
Placement agent's warrants     124,212       2.00    January 1999
Warrants to mall developer      25,000       5.00    October 2000

(i)  Upon the exercise of each Class A warrant, the holder will
     receive a share of Series A common stock and a Class B
     warrant.

     In connection with the Company's initial public offering in
     1995, the underwriter ("Blair") purchased, for nominal
     consideration, an option to purchase up to 280,000 units,
     each consisting of one share of Series A common stock, one
     Class A warrant and one Class B warrant.  In connection with
     the Company's private placement in 1996, Blair received an
     additional option to purchase up to 999,999 of such units. 
     Effective December 30, 1997 Blair canceled and terminated
     these options.

Note E - Commitments and Other Matters

[1]  Employment and consulting agreements:

     During the year ended December 31, 1997 two officers
     resigned and the employment agreement of one executive
     expired.  In addition, the Company terminated the employment
     of three executives whose employment agreements provide for
     severance payments aggregating $181,000, which has been
     accrued for in the accompanying statement of operations for
     the year ended December 31, 1997.  The Company has one
     outstanding employment agreement with an officer which
     provides for annual compensation of approximately $150,000
     and $113,000 in 1998 and 1999, respectively, plus increases
     and bonuses as determined by the Board of Directors.  The
     agreement provides for severance equal to the remaining
     payments through the term of the agreement.  In addition,
     this agreement provides for a three-year extension, at
     $150,000 per year, from the date of a change in control of
     the Company, as defined in the agreement.

     The Company has accrued $263,000 in the accompanying
     statement of net liabilities in liquidation as of
     December 31, 1997 in connection with this agreement.

[2]  Leases:

     During the year ended December 31, 1997 the Company was
     released from its office space lease obligation and
     currently leases its office space on a month-to-month basis. 
     Rent expense was approximately $122,000 and  $89,000 for the
     years ended December 31, 1997 and 1996, respectively.

[3]  Employee settlement:

     The Company reached an agreement with a former employee to
     settle claims relating to continued employment and rights to
     additional ownership interest in the Company.  The agreement
     requires the Company to pay the employee $200,000 plus
     accrued interest from excess cash flow (as defined) of the
     Company; the unpaid balance of the obligation was due on
     December 31, 1997 and interest at the prime rate began
     accruing on January 1, 1996.  The balance of such obligation
     at December 31, 1997 is $234,000.

[4]  Other commitments:

     In December 1996, the Company entered into a financial
     advisory agreement with an investment banking firm (the
     "Firm").  Pursuant to the agreement, the Firm was to provide
     financial advisory services to the Company for a period of
     18 months.  In connection with the agreement, the Firm
     received warrants to purchase 401,321 shares of Series A
     common stock at an exercise price of $2.00 per share.  The
     Company determined the fair value of the warrants to be
     $323,000 and recorded deferred consulting fees to be written
     off over the 18 month period.  In 1997 the agreement was
     terminated, the warrants were canceled and the Company
     charged the unamortized balance of deferred consulting fees
     of $153,000 to additional paid-in capital.

ITEM 8 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURES

          Not Applicable.

                            PART III

ITEM 9 - DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

Directors and Executive Officers

          Information regarding the directors and executive
officers of the Company as of March 31, 1997 is set forth below.

<TABLE>
<CAPTION>
Name                Age            Position
<S>                 <C>       <C>
Robert H. Lenz      58        Chairman of the Board of Directors

James N. Perkins    64        President, Chief Executive Officer
                              and Director, Treasurer

Gary D. Penisten    66        Director

Robert J. Wussler   59        Director

James N. Galton     74        Director

Eric C. Mendelson   30        Secretary
</TABLE>

Robert H. Lenz,
Chairman of the Board of Directors

          Mr. Lenz has served as the Company's Chairman since
May, 1993.  From 1979 to 1991, Mr. Lenz was a principal, Creative
Director and co-founder with five partners of the advertising
firm of Backer & Spielvogel Inc.  After the merger of Backer &
Spielvogel with Ted Bates, Inc. in 1988, Mr. Lenz was Chairman
and Creative Director of Backer Spielvogel Bates U.S. until 1991. 
Subsequent to his departure from Backer Spielvogel Bates U.S. in
1991, Mr. Lenz has been pursuing personal interests including the
development of Cafe USA.

James N. Perkins,
President, Chief Executive Officer and Director

          Mr. Perkins has served as President, Chief Executive
Officer and Director of the Company since October 1, 1996. 
Mr. Perkins served as Executive Vice President and Chief
Operating Officer of the Company from February, 1996 to
October 1, 1996.  From 1988 to 1996, Mr. Perkins was President of
US Tel, Inc., a telecommunications development company
specializing in new media.  From 1985 to 1988, Mr. Perkins
organized and managed an interactive media research venture of
Citibank, NYNEX and RCA.  From 1981 to 1985, Mr. Perkins
organized and managed the cable television programming venture of
Hearst Corporation and ABC that led to the development of the
Arts & Entertainment and Lifetime Networks.  From 1980 to 1981,
Mr. Perkins created and produced "The Home Shopping Show," the
forerunner of The Home Shopping Network.  Mr. Perkins is a
graduate of Dartmouth College and a former Captain in the U.S.
Air Force.

Gary D. Penisten,
Director

          Mr. Penisten has been a director of the Company since
October, 1993.  Mr. Penisten was employed with General Electric
from 1953 to 1974, including as Manager of Finance for General
Electric's Power Generation Group from 1972 to 1974.  From 1974
to 1977 Mr. Penisten served as Assistant Secretary of the Navy,
Financial Management.  In 1977 he joined Sterling Drug, Inc.
where he was Senior Vice President, CFO, and member of the Board
of Directors of Sterling until 1988.  After Sterling Drug was
acquired by Eastman Kodak in 1988, Mr. Penisten remained with
Kodak for two years as CFO of the Health Group until he took
early retirement to pursue personal business interests in 1990. 
Mr. Penisten was a minority owner and director of Network
Communications, Inc. which in December, 1990 filed a petition
pursuant to Chapter 11 of the Federal Bankruptcy laws. 
Currently, Mr. Penisten is Chairman of the Board and a director
of Acme United Corporation and a Director of D.E. Foster
Partners, Inc.

Robert J. Wussler,
Director

          Mr. Wussler has been a director of the Company since
October, 1993.  Mr. Wussler was President of CBS Sports and CBS
Television, Senior Executive Vice President with Turner
Broadcasting Systems (1980-1989), and CEO with Comsat Video
Enterprises (1989-1992).  Since leaving Comsat Video in 1992,
Mr. Wussler has remained active in the industry serving as
Treasurer to the Board of Governors of the National Cable
Television Association (NCTA), the Board of Governors of the
National Academy of Cable Programming (NACP) and the Board of
Advisors of the Cable Television Public Affairs Association
(CTPAA).  Mr. Wussler is currently the President and Chief
Executive Officer of New Venco, Inc., a private corporation owned
by ABC affiliated television stations organized to explore new
media ventures and is also a Director of the Nostalgia Channel, a
publicly held corporation.

James N. Galton,
Director

          Mr. Galton has been a director since June 4, 1997.  He
is presently retired.  He was President and Chief Operating
Officer of Marvel Entertainment, Inc. ("Marvel") from 1974 to
1990.  He then worked for Marvel as a consultant from 1991
through 1995.

Beneficial Ownership Reports

          Section 16(a) of the Securities Exchange Act of 1934
requires the Company's directors and executive officers, and
persons who own more than ten percent of the Company's Common
Stock, to file with the Securities and Exchange Commission
("SEC") initial reports of ownership and reports of changes in
ownership of Common Stock and other securities of the Company. 
Such persons are required by the SEC to furnish the Company with
copies of all Section 16(a) forms that they file.

          To the Company's knowledge, during the year ended
December 31, 1997, based solely on a review of the copies of the
Section 16(a) reports furnished to the Company, except as set
forth below, all of the Company's directors, officers and ten
percent stockholders have complied with Section 16(a) of the
Exchange Act.  On or about December 29, 1997, director James N.
Galton sold 38,427 shares of the Company's Series A Common Stock
to Eric Mendelson, the Company's secretary in a private sale at
then market value.

ITEM 10 - EXECUTIVE COMPENSATION

Executive Compensation

          The following table sets forth information for each of
the three years ended December 31, 1997, concerning compensation
for services in all capacities awarded to, earned by or paid to
(i) each person serving as the chief executive officer, and
(ii) the other executive officers of the Company who earned more
than $ 100,000 during such period (collectively, the "Named
Executives").  There were no other executive officers for whom
disclosure would have been provided but for the fact that such
individuals were not serving at December 31, 1997.
<PAGE>
<TABLE>
<CAPTION>
                           Summary Compensation Table

                                                                                           Long-Term Compensation     
                                                        Annual Compensation                   Awards           Payouts
                                                                         Other                     Securities            All
                                                                         Annual                    Underlying            Other
                                                                        Compensa-   Restricted      Options/    LTIP     Compen-
                                                                         tion(1)    Stock Awards    SARs(2)    Payouts   sation
Name and Principal Position           Year    Salary ($)   Bonus($)        ($)          ($)           (#)        ($)       ($)  
<S>                                   <C>     <C>          <C>          <C>         <C>            <C>         <C>       <C>
Robert H. Lenz................        1997    $ 70,833     $  N/A       $  N/A      $   N/A            N/A     $ N/A     $ N/A
  Chairman of the                     1996     100,000        N/A          N/A          N/A          600,000     N/A       N/A
  Board and Director                  1995      82,083        N/A          N/A          N/A            N/A       N/A       N/A

James N. Perkins..............        1997     135,000        N/A          N/A          N/A            N/A       N/A       N/A
  President and Chief                 1996     151,667        N/A          N/A          N/A          500,000     N/A
  Executive Officer                   1995       N/A          N/A          N/A          N/A            N/A       N/A       N/A

Darren M. Sardoff.............        1997      56,827        N/A          N/A          N/A            N/A       N/A       N/A
  Chief Financial Officer             1996     155,000        N/A          N/A          N/A          100,000     N/A       N/A
                                      1995      29,583        N/A          N/A          N/A            N/A       N/A       N/A

Stephen G. Bowen..............        1997       N/A          N/A          N/A          N/A            N/A       N/A       N/A
  Former President and                1996     175,000        N/A          N/A          N/A          100,000     N/A       N/A
  Chief Executive Officer             1995     165,208        N/A          N/A          N/A            N/A       N/A       N/A

H. Scott Phillips.............        1997     135,000        N/A          N/A          N/A          150,000     N/A       N/A
  Executive Vice President,     
  Operations

Mark Chalom                           1997     135,000        N/A          N/A          N/A            N/A       N/A       N/A  
  Senior Vice President,              1996                    N/A          N/A          N/A           50,000     N/A       N/A
  Programming & Production

_______________
</TABLE>

"N/A" indicates that the column is not applicable because no
compensation of the category required to be disclosed in the
column was received.

(1)  The costs of certain perquisites and other personal benefits
     are not included because they did not exceed, in the case of
     each Named Executive, the lesser of $50,000 or 10% of the
     total of annual salary and bonus reported in the columns
     above.

(2)  Indicates number of shares for which options were granted
     during the applicable periods.

     The following table sets forth information concerning grants
of stock options for the fiscal year ended December 31, 1997 to
the Named Executives.

              Option/SAR Grants in Last Fiscal Year

<TABLE>
<CAPTION>
                             Individual Grants   
                         Number of     % of Total
                        Securities      Options/      Number of
                        Underlying        SARs         Shares/
                         Options/      Granted to     Exercise
                           SARs         Employees      or Base
                         Granted        in Fiscal     Price(2)     Expiration
                         (#)(1)           Year         ($/Sh)         Date   
<S>                     <C>            <C>          <C>            <C>

H. Scott Phillips....    150,000        150,000        $1.37          2/6/01
_______________
</TABLE>

(1)  All amounts represent stock options to purchase shares of
     Series A Common Stock granted under the terms of the 1995
     Employee Stock Option Plan (the "Plan").  No SARs or SARs
     granted in tandem with options were granted during 1997. 
     Options terminate three months (but not later than the
     scheduled termination date) after the date on which
     employment is terminated (whether such termination be
     voluntary or involuntary) other than by reason of death or
     disability.  The option terminates one year from the date of
     termination due to death or disability (but not later than
     the scheduled termination date).

(2)  Under the terms of the Plan, the exercise price per share
     must equal the fair market value on the date the option is
     granted.  Certain options granted to Messrs. Perkins and
     Sardoff were repriced.  See " -- Compensation Committee
     Report on Option Repricing," herein.  The exercise price may
     be paid in cash, in shares of Series A Common Stock valued
     at fair market value on the date of exercise, or in any
     combination of cash and shares of Series A Common Stock.

          The following table sets forth information concerning
the exercise of options to purchase shares of Series A Common
Stock by the Named Executives during the fiscal year ended
December 31, 1997, as well as the number of securities underlying
unexercised options and potential value of unexercised options
(both options which are presently exercisable and options which
are not presently exercisable) as of December 31, 1997.

<TABLE>
<CAPTION>
               Aggregated Option/SAR Exercises in Last Fiscal Year
                     and Fiscal Year-End Option/SAR Value(1)

                                                          Number of         Value of
                                                          Securities        Unexercised
                                                          Underlying        In-the-Money
                                                          Options/SARs at   Options/SARs at
                                                          Fiscal Year-End   Fiscal Year-End
                                                              (#)                 ($)(2)
                       Shares Acquired   Value Realized   Exercisable/      Exercisable/
     Name              on Exercise(#)          ($)         Unexercisable     Unexercisable 
<S>                    <C>               <C>              <C>               <C>
Robert H. Lenz.......         0                $0          0/600,000          $0/0
James N. Perkins.....         0                 0       200,000/300,000        0/0
H. Scott Phillips....         0                 0       100,000/50,000        0/0
Mark Chalom..........         0                 0        12,500/12,500        0/0
</TABLE>
_____________________

(1)  All amounts represent stock options to purchase shares of
     Series A Common Stock.  No SARs or SARs granted in tandem
     with stock options were either exercised during 1997 or
     outstanding at fiscal year-end 1997.

(2)  "In-the-money options" are stock options with respect to
     which the market value of the underlying shares of Series A
     Common Stock exceeded the exercise price at December 31,
     1997.  The value of such options is determined by
     subtracting the aggregate exercise price for such options
     from the aggregate fair market value of the underlying
     shares of Series A Common Stock on December 31, 1997.

Employment Contracts, Termination of Employment and Change-in-
Control Arrangements

          Effective October 1, 1996, Robert H. Lenz, the
Company's Chairman, entered into a three-year employment
agreement with the Company which provides for:  (1) a base salary
of $100,000 per year, with increases in subsequent years as may
be determined in the discretion of the Board of Directors,
(2) bonus compensation as determined from time to time in the
discretion of the Board of Directors, (3) a special bonus
consisting of 3.75% of the fair market value of any strategic
alliance or merger or acquisition transaction, (4) options to
purchase 600,000 shares of Series A Common Stock at an exercise
price of $2.00 per share, with certain vesting provisions as
described below, (5) severance payments upon a change in control
of the Company, termination of employment or voluntary
resignation for "good reason" (as defined in the agreement) equal
to 2.99 times his then base compensation, and (6) benefits
provided to all other senior management employees of the Company. 
On September 10, 1997, Mr. Lenz terminated his employment
contract with the Company but remained Chairman of the Board of
Directors.

          Effective October 1, 1996, James N. Perkins, President
and Chief Executive Officer, entered into an employment agreement
with the Company on substantially similar terms to that between
the Company and Mr. Lenz except that Mr. Perkins will receive
base compensation of $150,000 and options to purchase 500,000
shares of Series A Common Stock at an exercise price of $2.00 per
share, with certain vesting provisions as described below.

          The options granted to Mr. Lenz and 300,000 of the
options granted to Mr. Perkins under their employment agreements
shall vest in three equal annual installments on November 14,
1997, 1998 and 1999 provided that (a) the first installment shall
vest if and only if the Company (i) reports positive earnings
before extraordinary items, interest, taxes, depreciation and
amortization for the fiscal year ending December 31, 1997, or
(ii) reports earnings (before extraordinary items) per primary
share ("EPS") of at least $0.35 for the fiscal year ending
December 31, 1998, or (iii) reports EPS of at least $0.60 for the
fiscal year ending December 31, 1999, or (iv) reports EPS of at
least $0.90 for the fiscal year ending December 31, 2000, (b) the
second installment shall vest if and only if the Company achieves
a target set forth in preceding sub-clauses (a)(ii), (a)(iii) or
(a)(iv), and (c) the third installment shall vest if and only if
the Company achieves a target set forth in sub-clause (a)(iii) or
(a)(iv).

          On October 9, 1995, the Company entered into an
employment agreement with Darren M. Sardoff as the Senior Vice
President, Business Affairs and Chief Financial Officer of the
Company.  On May 25, 1997, Mr. Sardoff terminated his employment
with the Company.  

          On October 24, 1996, the Company entered into a
severance agreement with Stephen Bowen, former President and
Chief Executive Officer of the Company.  Under the severance
agreement, Mr. Bowen received severance pay of $175,000 which is
payable by the Company in 52 weekly installments from October 1,
1996 through September 30, 1997.  In addition, Mr. Bowen was
granted options to purchase 100,000 shares of Series A Common
Stock which are fully vested and immediately exercisable at the
price of $2.00 per share.

Directors' Compensation

          In 1997, non-employee directors of the Company who were
not also holders of Series B Common Stock and have not been
nominated pursuant to a contractual undertaking by the Company
receive a fee of $1,000 per meeting, $500 for each committee
meeting attended in conjunction with a Board meeting and $1,000
per committee meeting attended not in conjunction with a Board
meeting.  In addition, in July 1997, the Company granted options
to purchase 90,000 shares of Series A Common Stock at an exercise
price of $1.625 to James N. Galton pursuant to the Company's
Director Stock Option Plan.

ITEM 11 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

          The following table sets forth, as of April 1, 1998,
the ownership of the Company's Common Stock by (i) each person
who is known by the Company to own, of record or beneficially,
more than five percent of the Company's Series A Common Stock or
Series B Common Stock, (ii) each of the Company's Directors and
Executive Officers, and (iii) all Directors and Executive
Officers as a group.  Except as otherwise indicated, the
stockholders listed in the table have sole voting and investment
powers with respect to the shares indicated.

<TABLE>
<CAPTION>

                                     Shares of    Percentage of      Shares of    Percentage of
                                     Series A        Series A        Series B        Series B
                                   Common Stock    Common Stock    Common Stock    Common Stock
                                   Beneficially    Beneficially       Voting
       Name(1)                       Owned(1)          Owned      Owned(1)(2)(3)     Owned(4)     Control
--------------------------------   ------------   -------------   --------------  -------------  ---------
<S>                                <C>            <C>             <C>             <C>            <C>
Robert H. Lenz.................      703,772(5)         4.9%        440,748(6)         43.5%          13%

Stephen G. Bowen...............      234,615(7)         1.7%        206,545(8)         20.4%         5.6%

Joseph Mercaldo................      158,787(9)         1.1%        158,787(8)         15.6%         4.2%

Gary Penisten..................       90,000(10)          *             -0-             -0-            *

Robert S. Wussler..............      190,000(10)          *             -0-             -0-            *

James Perkins..................      234,427(11)        1.6%            -0-             -0-            *

James E. Galton................       30,000(12)          *             -0-             -0-            *

Eric Mendelson.................       38,427              *             -0-             -0-            *

All Officers and Directors
  as a Group (8 persons).......    1,680,028(13)        10.7%       806,080            79.5%          23%

</TABLE>
_______________

*    Denotes less than 1%

(1)  The securities "beneficially owned" by an individual are
     determined in accordance with the definition of "beneficial
     ownership" set forth in the regulations of the Securities
     and Exchange Commission.  Accordingly, they may include
     securities owned by or for, among others, the wife and/or
     minor children of the individual and any other relative who
     has the same home as such individual, as well as other
     securities as to which the individual has or shares voting
     or investment power or has the right to acquire under
     outstanding stock options, warrants or convertible
     securities within 60 days after the date of this table. 
     Beneficial ownership may be disclaimed as to certain of the
     securities.

(2)  Certain holders of Series B Common Stock have placed a
     portion of their shares of Series B Common Stock in escrow
     and may vote such shares but not transfer them as of this
     time ("Escrow Shares").

(3)  Each share of Series B Common Stock is entitled to five
     votes per share, is convertible into one share of Series A
     Common Stock at the option of the holder, and will
     automatically convert into an equivalent number of shares of
     Series A Common Stock upon the sale or transfer by the
     record holder to any person other than another holder of
     Series B Common Stock.

(4)  Excludes 10,135 shares of Series B Common Stock held in
     treasury.

(5)  Includes warrants to purchase 229,518 shares of Series A
     Common Stock and 440,748 shares of Series A Common Stock
     which may be acquired upon the conversion of Series B Common
     Stock.  Does not include 600,000 shares of Series A Common
     Stock underlying unvested options.

(6)  Includes 241,180 Escrow Shares.

(7)  Includes 30,000 shares of Series A Common Stock underlying
     currently exercisable warrants and (ii) 206,545 shares of
     Series A Common Stock which may be acquired upon the
     conversion of Series B Common Stock.

(8)  Includes 106,545 Escrow Shares.

(9)  Includes 158,787 shares of Series A Common Stock which may
     be acquired upon the conversion of Series B Common Stock.

(10) Represents 90,000 shares of Series A Common Stock which may
     be acquired upon the exercise of currently exercisable
     options and warrants.    Does not include 60,000 shares of
     Series A Common Stock underlying unvested options.

(11) Includes 200,000 shares of Series A Common Stock which may
     be acquired upon the exercise of currently exercisable
     options.  Does not include [(i) 55,668 shares of Series A
     Common Stock underlying warrants which are not exercisable
     until November 14, 1997 ?] or (ii) 300,000 shares of
     Series A Common Stock underlying unvested stock options. [?]

(12) Represents 30,000 shares of Series A Common Stock which may
     be acquired upon exercise of currently exercisable options. 
     Does not include 60,000 shares of Series A Conversion Stock
     underlying unvested options.

(13) Includes 764,518 shares of Series A Common Stock which may
     be acquired upon the exercise of currently exercisable
     options and warrants and 806,080 shares of Series A Common
     Stock which may be acquired upon conversion of Series B
     Common Stock.

ITEM 12 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

          Not Applicable.
<PAGE>
ITEM 13 - EXHIBITS AND REPORTS ON FORM 8-K

          (a)  Exhibits

Number         Title

2.1       Purchase and Sale Agreement between Company and Prime
          Spot Media USA, Inc.

3.1       Amended and Restated Certificate of Incorporation of
          the Company

3.2*      Bylaws of the Company

4.1*      Specimen Form of Series A Common Stock Certificate

4.2*      Forms of Unit Purchase Options

4.3*      Form of Warrant Agreement, with Specimen Form of
          Class A and Class B Warrant Certificate attached

10.1*     Stock Option Plan for Consultants and Advisers

10.4      Employment Agreement with Robert H. Lenz**

10.5      Employment Agreement with James N. Perkins**

10.9*     Escrow Agreement

10.10*    Employee Stock Option Plan**

10.11     Severance Agreement with Stephen G. Bowen.**

23        Consent of Richard A. Eisner & Company, LLP

27        Financial Data Schedule

____________
 *   Incorporated by reference from Amendment No. 1 to
     Registration Statement on Form SB-2 (File No. 33-91054).

**   Denotes a management contract or compensatory plan or
     arrangement.

          (b)  Reports on Form 8-K

                    None
<PAGE>
                           SIGNATURES

          In accordance with Section 13 or 15(d) of the Exchange
Act, the Registrant caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

                              FOOD COURT ENTERTAINMENT NETWORK,
                              INC.

                              By: /s/ James N. Perkins           
                                   James N. Perkins, President
                                   and Chief Executive Officer

                              Date:  May 6, 1998


          In accordance with the Exchange Act, this report has
been signed below by the following persons on behalf of the
Registrant and on the dates indicated.
<TABLE>
<CAPTION>
Signature              Capacity                    Date
<S>                    <C>                         <C>
/s/ James N. Perkins   President, Chief Executive  May 5, 1998
James N. Perkins       Officer, Director (Principal
                       Executive Officer)

/s/ Robert H. Lenz     Chairman of the Board of    May 5, 1998
Robert H. Lenz         Directors

/s/ Gary D. Penisten   Director                    May 5, 1998
Gary D. Penisten

/s/ James E. Galton    Director                    May 5, 1998
James E. Galton

/s/ Robert S. Wussler  Director                    May 5, 1997
Robert S. Wussler
</TABLE>
<PAGE>
                          EXHIBIT INDEX

Number         Title

2.1       Purchase and Sale agreement between the Company and
          Prime Spot Media USA, Inc.

3.1       Amended and Restated Certificate of Incorporation of
          the Company

3.2*      Bylaws of the Company

4.1*      Specimen Form of Series A Common Stock Certificate

4.2*      Forms of Unit Purchase Options

4.3*      Form of Warrant Agreement, with Specimen Form of
          Class A and Class B Warrant Certificate attached

10.1*     Stock Option Plan for Consultants and Advisers

10.4      Employment Agreement with Robert H. Lenz**

10.5      Employment Agreement with James N. Perkins**

10.9*     Escrow Agreement

10.10*    Employee Stock Option Plan**

10.11     Severance Agreement with Stephen G. Bowen.**

23        Consent of Richard A. Eisner & Company, LLP

27        Financial Data Schedule

____________
 *   Incorporated by reference from Amendment No. 1 to
     Registration Statement on Form SB-2 (File No. 33-91054).

**   Denotes a management contract or compensatory plan or
     arrangement.