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Tuesday, June 3, 2014

Hannover House Positioned Perfectly for Changing Distribution Marketplace

Dear HHSE Friends & Shareholders - today's breaking news, that International Indie Powerhouse E-ONE ENTERTAINMENT has purchased North American Walmart vendor PHASE 4 FILMS is like Christmas in June for Hannover House (see breaking news article link below).

Why is this good news for HHSE?  We'll explain:

E-ONE has a significant line-up of mid-level features, including theatrical titles.  Until now, they have had to spread these releases among four of five other indie studios servicing the North American home media market - often placing their titles with ANCHOR BAY, ECHO BRIDGE, PHASE 4 or RLJ / IMAGE Entertainment.  Having their own "direct" access into Walmart now (as owner of Phase 4) means that E-ONE will no longer be feeding titles into those other Hannover House competitors... and it also means that current supplier-labels utilizing Phase 4 Films will need to find a new "master studio" home for their labels on a going-forward basis.

With the HHSE addition of TOM SIMS as V.P. of Sales - and his pedigree of having been the Walmart buyer for Anderson Merchandisers (a 'consolidator'), the Director of National Accounts for Universal Music Group / Vivendi (also a 'consolidator') and as VP of Corporate Development for Allegro Media Group (a multi-label 'consolidator') - it puts HHSE in the driver's seat to become the leading one-stop "master" distributor (consolidator) of indie studio labels into Walmart and other key accounts. 

Without increasing the company's basic operating overhead, HHSE can triple - or quadruple - annual revenues by acting as the master one-stop for other indie studios needing access into Walmart, Redbox, Netflix and the other key accounts that HHSE is already servicing.  Phase 4 will be focusing on maximizing sales for E-ONE titles - not on outside label product - and this is shaping into a multi-million dollar "Christmas in June" surprise for Hannover House!