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Wednesday, June 24, 2015

Expansion Into In-House DVD and BluRay Replication

In a strategic move to lower cost-of-goods, lower freight times and increase both revenue and efficiencies, Hannover House will announce today the capital investment and operational expansion into in-house, DVD and Blu-Ray replication.

For the past twelve years, HHSE physical video products have been manufactured for the Company by a variety of third-party suppliers (most of which are located in California). As the Company's sales volume and catalog have grown significantly over the past few months, the benefits of obtaining DVD and BluRay products both faster and cheaper became clear. 

HHSE believes that the cost for launching this new internal manufacturing activity will be recouped in less than 90-days - and will quickly turn into a positive revenue source from margins generated by providing manufacturing services to supplier studios under the Medallion Releasing multi-studio distribution venture.

Watch for a formal, wire services press release today!

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ACCESS WIRE:  3:00 PM Eastern Daylight Time:

Hannover House and Medallion Catalog Sales to Benefit from Newly Added, In-House DVD and BluRay Manufacturing Capability

(Springdale, AR)  Hannover House, Inc. (OTC: HHSE), a leading U.S.A. producer and distributor of independent films, books and entertainment products, is taking a bold step forward in the company’s development with the addition of in-house DVD and BluRay manufacturing equipment.  The new video production line is designed specifically to service the company’s rapidly growing catalog of DVD and BluRay titles, with the higher-volume, new release manufacturing duties still expected to be handled by larger manufacturing facilities. 
At present, Hannover House and Medallion Releasing titles are being manufactured by CD Video in Santa Ana, CA, Encore Media Services in Valencia, CA, and SONY DADC in Bolingbrook, IL.  The addition of in-house DVD and BluRay manufacturing capability at Hannover’s primary offices in Springdale, AR, will enable the company to manufacture catalog and deep list titles on an as-needed basis, and is expected to improve the company’s turn-around time, margins and placement rates.

“As our catalog has grown to over 300 titles, the need for quick turn-around on short-run video orders has grown exponentially,” said Fred Shefte, President.  “The major replication houses prefer to focus on larger orders of 20,000 or more units at a time, which is great for our frontline releases, but it does not work for older, backlist titles.  Rather than over-order on catalog inventory - and tie-up our working capital for a long period of time – this new in-house replication equipment will enable us to profitably and quickly manufacture to order on an as needed basis.  We believe that this will free-up cash flow, improve our order fulfillment times, cut down on freight and ultimately become a revenue source as we make this short-run replication service available to the Medallion Releasing supplier labels,” he concluded.

Hannover House and Medallion Releasing supplier labels have released 38 titles already during the first half of 2015, and are expected to collectively exceed 90 titles by year’s end.  This volume of new releases and catalog promotions represents a massive increase over 2013 and 2014, which each saw less than eight new release titles from Hannover House.  The enhanced release slate is being managed by HHSE / Medallion V.P. of Sales, Tom Sims, and Director of Sales Caitlin McKenzie.  The Medallion strategy is to open up access to mass merchants and key video customers to outside supplier studios on a sales fee basis.  The business model is patterned after Vivendi/Universal Music Group, which saw home video revenues expand to more than $180-million annually when Sims implemented a similar business model there.  Primary supplier studios selling DVD and BluRay products under the Medallion Releasing venture include Hannover House, Green Apple, C.M.D., XVIII Entertainment, Ytinifni Films and Fever Dreams.

Key retail accounts for Hannover House and Medallion Releasing include Walmart Stores, Inc., Best Buy, Redbox, Netflix, SAM’s Clubs, Target Stores and thousands of independent video retailers, schools, libraries and booksellers.  The company also sells entertainment products to a wide range of internet sites, and services most major video-on-demand portals. The company has been profitable for each of the past five years, and feels that the 2015 new activities will significantly increase both revenues and bottom line results.  Hannover House stock is traded on the OTC Markets under ticker symbol: HHSE.


This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.