Company CEO Examines Change in Status on Pink Sheets, New Product Launches, Expanding Its Catalogue, the Roc Monee Ringtone Campaign, and New Digital Only Strategy for Music Sales
PHILADELPHIA, PA--(Marketwire - December 20, 2007) - RMD ENTERTAINMENT GROUP, INC. (PINKSHEETS: RMDM), a Music and Entertainment Company focused on the development and marketing of "Urban Media Content" worldwide, today issued the following shareholder letter by CEO Giorgio C. Costonis.
Dear RMDM Shareholders, Employees, and Associate Companies:
The company took a momentous step yesterday when it announced a digital only format for its music sales world-wide. This exciting news was just the tip of the iceberg for our firm as we have made major changes and significant progress with the company and will continue to do so in 2008. I have outlined the results of our change in philosophy for the new year and pointed out where we stand in different initiatives that we have already begun in the bullet point(s) below.
PINK SHEETS CLASSIFICATION -- As we see great things on the horizon for the company based upon our current distribution capabilities and changes in market conditions for our product, management has made the commitment to making the investment in the company to change the classification on our trading forum -- Pink Sheets. This will be done in 2 distinct phases. First, we will compile our financials for 2007 in January and make them available at month(s) end. This should bring us from a Stop Sign rating to a Yield Rating. Second, we will begin to take the necessary steps to go from a Yield Sign Rating to a Pink Sheets Current Rating. The first step is targeted to be completed within 6 weeks of this letter. Our goal is to complete the second step by the end of fiscal year 2008 at which time we will re-examine our status and rating on Pink Sheets and determine our next step as a company. I thought it was important to our shareholders as well as me personally to improve this part of our book of business as a company. This was difficult in the past simply because of the cost involved in accounting but now that RMDM has significantly reduced our cost of sales through our new digital only format we will have the necessary funds to facilitate this while still being able to maintain an effective marketing strategy.
NEW PRODUCT LAUNCHES -- RMDM sees a huge opportunity for the mobile market of ringtones. As a result, we are pleased to announce a new comedy division for our ringtone format only. The first offering from the comedy division will be TONY'S STREET TONES. TONY'S STREET TONES is comprised of 25 individual ringtones in which the character urges the call receiver to answer the phone for numerous reasons, all of which have to do with his alleged life as part of gangland or a Mafia type organization. RMDM has already produced the first set of commercials for the first five tones and tested them over the last two months with great results. Character ringtones have earned significant dollars in the past. Most notably, the Crazy Frog from Jamba (Jamster) which earned an estimated £14 million from the ringtone, making it the most commercially successful ringtone of all time. As with the Crazy Frog, we see the possibility of additional revenues for this product through product spin offs and other licensing opportunities for the company. TONY'S STREET TONES will be available early in first quarter 2008 and we are very optimistic that with the ringtone marketplace growing at such an obscene rate, this project has great promise for us in the new year.
CATALOGUE EXPANSION -- Most emerging companies in the public sectors often look for acquisitions to help build the balance sheet and improve shareholder value. RMDM is slightly different in this philosophy. Our goal is not to acquire companies. Our goal is to acquire content to expand our product offering to the global marketplace digitally. It is our feeling that through our vast world-wide distribution center we can and will attract significant music and video titles for download and ringtone sales. I have set a mandate for the company to increase its current catalogue by 25 to 50 times what it has currently and I am confident we can and will reach this goal. By having a significant amount of titles available for purchase, we have a better chance at increasing the bottom line going forward without putting ourselves under the pressure of earning all revenues from one or two artists or projects. In this scenario, I see RMDM continuing to develop exclusive product lines in 2008 as well as acting as a major distributer of product for other media and music companies. We are setting out to become major players in the digital distribution arena in this upcoming year and will institute an aggressive campaign to do so.
ROC MONEE RINGTONE PROGRAM -- We recently completed the production of the ringtone commercial for our artist Roc Monee. I am extremely pleased with the commercial and am especially pleased with the work our staff did in putting together a strong marketing effort for Roc in 2008. We have already secured and paid for national radio promotion for Roc for first quarter 2008 with one of the highest rated firms in music today. In addition, we have secured 60 second commercial buys through Comcast Spectacor to support the radio effort. This endeavor was especially challenging based on the dollars it takes to successfully implement a comprehensive program that can succeed at the highest level nationally. We were able to achieve the necessary marketing muscle by shifting away from the outdated CD format and concentrating those dollars in the areas we knew the industry was generating the most money today -- downloads and ringtones. The radio promotion, commercial schedule, and multimedia broadcast opportunities offer us a great chance for success and a significant return on our investment.
OUTLOOK AND REFLECTION -- As I look into what the future holds for the company in 2008 and beyond I conclude simply that our time as a company has come. We live in a world of digital commerce. The key staff of our company understand this world very well and have put us in the position to win in this arena on the largest scale. In my opinion, we were ahead of the curve in the music industry with our firm commitment to digital sales as a company. Now, we actually have strategic advantage over competitors we never dreamed of touching and they are scrambling on a corporate level to build market capability that took us 24 months to achieve. Our time has come.
On behalf of all of us at RMD Entertainment Group, thank you for your continued support, happy holidays and God Bless You All.
Sincerely,
Giorgio C. Costonis
CEO
RMD Entertainment Group
About RMD Entertainment Group
RMD Entertainment Group is a cutting edge Entertainment Company and Record Label. The Company is primarily focused on the development and international marketing of "Urban Media Content" or more commonly known as Hip-Hop music worldwide that includes digital downloads and personal "Ringtones" for mobile phone customers. RMD currently has a promotional partnership with MOTV, www.motv1.tv that allows RMD to promote its music content through high traffic areas of multimedia broadcasts of video content on cable, internet, and mobile arenas. The Company currently possesses an impressive Hip-Hop catalogue that is distributed through 75 digital distributers world-wide and directly through mobile carriers.
Based out of Florida with satellite offices in New Jersey and Delaware, RMD Entertainment has formed one of the most extensive distribution channels around the world for Hip-Hop lifestyle products and is the next step in the evolution of Urban Media Content. RMD elevates Hip-Hop music to a higher standard of excellence in economic performance and moral ethics in the music industry.
For further information on RMD Entertainment Group, visit the Company's Web site: www.rmd-entertainment.com.
Safe Harbor
Forward-looking statements made in this release are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made by RMD Entertainment Group, Inc., are not a guarantee of future performance. This news release includes forward-looking statements, including with respect to the future level of business for the parties. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors that could cause results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties and events that may be beyond the control of RMD-Entertainment Group, Inc. and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition.
Contact
RMD Corporate Offices
888 508 5445
mena@rmd-entertainment.com
