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Friday, March 7, 2014

More information on new DVD/CD/BD replication venture

Good morning HHSE Friends & Shareholders - While the overall market react quite properly to yesterday's news of a major replication / fulfillment venture for Hannover House, we still received some emails and inquiries about "who is AnyThing Technologies Media, Inc." and the various manufacturing plants and ventures that they own?  Some were perplexed to discover that this replication company is also involved in activities outside of replication... the same sort of diversity that has confounded purchasers of "GE Lightbulbs" from wondering why that company is also involved in media, jet engines and consumer credit... as if some of these other business activities somehow suggest that GE doesn't still make terrific light bulbs?

From HHSE's perspective, it was an easy decision to go with ATMI-EXMT on this venture.  Our sales volume of DVDs has been growing FASTER than our internal cash-flow capabilities to self-finance the manufacturing needs.  With some new items (such as "LENNON BERMUDA" and our new placements into "BUDGET BIN" DVDs), the need to replicate 500,000 or more units was a daunting problem... exciting for revenues, but problematic for cash flow.

The venture with ATMI-EXMT creates a credit-line mechanism to enable Hannover House to rapidly grow our sales without over-extending our cash resources.  Additionally, the pricing and service turn-around from ATMI-EXMT is attractive (and better in most volume-cases).  The initial HHSE titles will commence replication TODAY at the Santa Ana, CA facility.

Key clients for ATMI-EXMT include SONY, AOL, Electronic Arts, FedEx and more.  Hannover House will be their primary "independent studio" supplier.  They have been operating in the replication arena for over 15-years.  We think this replication venture is a good fit for Hannover House, and very beneficial to the growth of our sales.

If ATMI-EXMT wants to have investments or activities in other markets and arenas, I won't fault them for this diversity... just like I wouldn't criticize GE for doing the same.  As long as HHSE gets our products replicated at a good price, with good quality, great terms and great service... we're going to be happy!