LAS VEGAS, NV, CA, June 5, 2018 – Capital Art, Inc. (OTC: CAPA), a marketer and distributor of vintage Iconic Pop Culture images for the art, editorial and commercial markets, reported results for the first quarter ended March 31, 2018. Financial results are comparisons made to the same year-ago quarter unless otherwise noted.

Q1 2018 Financial Highlights

  • • Total revenue up 260% to a record $550,000.
  • • Reduced total operating expenses by 22% to $169,000.
  • • Net income totaled $71,000.

Q1 2018 Operational Highlights

  • • Expanded third-party and reseller programs, doubling number of third-party resellers and using social media more on direct-to consumer-programs.
  • • Launched development of a management software system to more efficiently ingest images and distribute them through retail and licensing channels.
  • • Deployed new digital technology to track where and how the company’s images are used.

Q1 2018 Financial Summary

Revenue totaled $550,000 in the first quarter of 2018, as compared to $153,000 in the same year-ago quarter. The improvement was primarily due to increased sales from the company’s collectibles division as well as licensing sales.

Operating expenses decreased to $169,000 from $216,000 in the same year-ago quarter due to lower general and administrative costs and primarily from lower professional fees.

Net income was $71,000 or $0.00 per share as compared to a loss of $257,000 or $(0.00) per share in the same year-ago quarter.

Management Commentary

“Our first quarter results were driven by growth in both image and license revenue, following an extensive period of assets acquisition and channel development,” said Capital Art CEO, Stuart Scheinman. “The results also reflect a newly instituted direct-to-consumer marketing campaign and new programs with third-party resellers and traditional and online retailers.

“We have continued to develop our new licensing division, Globe Photos, and have invested in the development of software and technology to more efficiently ingest images and distribute them through our retail and licensing channels. We expect these efforts to prepare our business to scale as demand increases. We have also been deploying new methods to protect our rights and ownership, including adopting new digital technology to track where and how our images are used. 2

“This technology will be key as we continue to pursue our mission of becoming the largest online repository of archival pop culture photography in the world. We have amassed our current inventory and rights to photographic images and reproductions from a series of favorable acquisitions that started in 2011. This effort has resulted in an expansive collection of more than 10 million rare photos and negatives, including the rights to the Frank Worth collection, Movie Star News Collection, and Globe Photos. Our collections include one-of-a-kind prints and memorabilia, as well as rare images of celebrity icons, like Elvis Presley, James Dean, Marilyn Monroe and many others, most of which have never been seen by the public.

“In all, the shareholder value we have created is phenomenal by any measure, particularly when compared to our public peers. As we continue through the second quarter, we remain focused on developing our marketing and sales channels and pursuing the best avenues for monetizing these tremendous assets. This includes evaluating a number of acquisition opportunities which would allow us to accelerate these efforts, as well as provide more steady and predictable growth in the quarters ahead.”

About Capital Art Founded in 2004, Capital Art, Inc. acquires and manages Iconic Pop Culture photographic image libraries. It has one of the largest and most diverse collections of vintage Pop Culture imagery in the world, with more than 10 million iconic images that feature the most beloved Hollywood idols, music stars and most iconic figures of the 20th century. The company markets and distributes images for the art, editorial and commercial markets. Capital Art also sells limited editions of its photographs through the company owned gallery and through third-party galleries, art consultants, and interior decorators. For further information, visit www.capitalart.com.

Important Cautions Regarding Forward-Looking Statements

Cautionary statement for purposes of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995: Information in this news release contains forward-looking statements that involve risks, uncertainties, and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of the Company and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties, and assumptions include the execution and performance of contracts by the Company and its customers, suppliers, and partners. The Company disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. 3

CAPITAL ART, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS