HHSE's BIGGEST RELEASE and BIGGEST TITLE EVER!

Dear HHSE Friends & Followers - The Company is pleased to announce the Nationwide Theatrical partnership with East Side Story Films for the release of the youth-appeal, "DANCIN' IT'S ON" film coming up RIGHT AWAY!

In fact, to meet the Oct. 16 release date, we're already staffing-up and gearing up for the tremendous resource launch that this film will enjoy!

Financially, the deal is mutually beneficial:  East Side Story Films is providing for the P&A Releasing Costs;  HHSE will earn a sales fee from revenues, with no downside, no guarantee, and no contingent stock liability.  The film fits perfectly into the mid-October release window, which works with most of our key exhibition chains... and times out perfectly for the February Modular Resets of DVD and BluRay titles for Walmart, Best Buy and Target.

Stay tuned for more updates on the mega-release, that is HAPPENING RIGHT NOW for HHSE!

* * * * *

Hannover House Pacts with East Side Story Films For October 16 Nationwide Theatrical Release of Youth-Appeal “DANCIN’ IT’S ON”

(Miami,  FL)  - Dance Superstars Witney Carson (2015 winner on “Dancing With the Stars”) and Chehon Wespi-Tschopp (“So You Think You Can Dance”) have been paired together both romantically and on the dance floor for the October 16 nationwide theatrical release of “Dancin’ It’s On”, a youth-appeal dance feature from producer-director David Winters (“West Side Story”, “Roller Boogie”, “The King Maker”). The film, which was shot primarily in Panama Beach City, Florida, won three awards earlier this year at the Widescreen Film and Music Video Festival in Miami and features an impressive cast of youth dancers and stars.  Other key cast members include Russell Ferguson (Grand Prize Winner of “So You Think You Can Dance?”), Jordan Clark (“The Next Step”), Comfort Fedoke (“Step Up: All In”), Tadd Gadduang (“High School Musical 3”) and “Glee” alums Matt Marr and Brandon Bryant.  “Dancin’ It’s On” will be released on October 16, and will appear on more than 600 screens in all of the top USA markets, through a theatrical releasing venture with independent distributor Hannover House, Inc. (OTC: HHSE).

The theatrical release venture for the film was negotiated by Executive Producer Bruce R. Lewin and David Winters on behalf of production company East Side Story Films, with Eric Parkinson, C.E.O. of Hannover House, Inc.  Winters and Parkinson worked together previously as partners in the indie home video label, A.I.P. Home Video, Inc. of Los Angeles, (1989 – 1991).  Hannover House will release the film through mainstream exhibition chains, with special effort to replicate specific theatre locations that performed well with comparable releases of “Step Up” and “Bring It On.” Key theatrical circuits serviced by Hannover House include (alphabetically) AMC, Arcangelo, Carmike, Cinemark (Century), Harkins, Malco, Marcus, National Amusements, Regal (Edwards / U.A.), and Santikos.

Hannover House will also be handling the ancillary markets distribution for the film, including home video, video-on-demand, subscription V.O.D. licensing and television.  The company has targeted February 2, 2016 as the home video street date for DVD, Blu-Ray and transactional video-on-demand placements.  Similar home video releases, such as “Step Up” (Touchstone Home Entertainment) generated $51.8-million in domestic home video sales, according to industry tracking site, The-Numbers.com.

“We are extremely excited to be handling this release for David and his team,” said Eric Parkinson, C.E.O. of Hannover House.  “The mid-October theatrical release window fits perfectly into a major market opportunity, as well as satisfying corporate release goals for Hannover House, and perfectly sets-up the film for a major home video launch in February.  We’ve been seeking a major release for the fourth quarter, and are fortunate to be handling a title in the consistently successful genre of youth-oriented dance,” he continued.

SYNOPSIS:  This coming of age Dance Film, in the spirit of Dirty Dancing and High School Musical - is about two young lovers from different worlds who find a common bond in their love of dance, and who ultimately work together to win a major dance competition. Jennifer, a High School Junior from Beverly Hills, falls in love with the handsome young Ken, who works at her father’s Panama City Florida beach-front hotel. While preparing for the competition, they must overcome scheming dance partners, a meddling father and their own doubts in order for their love – and their chances at winning – to prevail. Featuring 2015 DANCING WITH THE STARS Champion WITNEY CARSON, alongside the impressive CHEHON WESPI-TSCHOPP (SO YOU THINK YOU CAN DANCE?) and a powerhouse cast of youth dancers and stars, DANCIN’ IT’S ON is the most intense, energetic and enjoyable dance film since STEP-UP!

YOUTH-ORIENTED DANCE FEATURES
Comparable Titles to "Dancin' It's On"
			USA	USA
Title	Year	Studio	Box Office*	Home Video**
STEP UP	2006	Buena Vista/Disney	$65.3-Million	$51.8-Million
STEP UP 2 THE STREETS	2008	Buena Vista/Disney	$58.0-Million	$26.1-Million
HIGH SCHOOL MUSICAL 3	2008	Buena Vista/Disney	$90.5-Million	$60.8-Million
STEP UP 3-D	2010	Buena Vista/Disney	$42.4-Million	$12.4-Million
STEP UP REVOLUTION	2012	Buena Vista/Disney	$35.0-Million	$11.5-Million
STEP UP ALL IN	2014	Lionsgate	$14.9-Million	$2.6-Million
		GENRE AVG. RESULTS:	$51.0-Million	$27.5-Million
*    Box Office Grosses from BoxOfficeMojo.com
** Home Video Grosses from The-Numbers.com
or from HomeMediaMagazine.com

SAFE HARBOR STATEMENT

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.

This is something cool, that only happens ONCE!

Good afternoon HHSE Friends & Followers.  Shipping NEW RELEASE DVDS to Walmart is nothing NEW for Hannover House.  So having FOUR titles shipping out today is not a big deal, and certainly not worthy of a press announcement.

But what we find to be VERY COOL is that these are the first shipments of products that were primarily manufactured IN-HOUSE with our new DVD and BluRay manufacturing and packaging lines.  "WEATHER STATION", and "GRIM" are shipping to on-line retailers and video wholesalers... "LAZARUS PAPERS" are for Walmart RE-ORDERS (it's FLYING off shelves!), and "ON ANGELS WINGS" is also set for Walmart, with a STREET DATE of next Tuesday, Sept. 1st!

GO HHSE!  Vertical integration, profit maximization, order efficiency and more!

"Reserve Shares" for HHSE are being eliminated, and Wyoming S.O.S. will be corrected

Good Morning HHSE Friends - we are informed that the Wyoming Secretary of State was contacted by ne'er-do-wells who were intellectually unable to grasp the concept of "Reserve Shares" and persuaded the S.O.S. listing for HHSE to be MODIFIED (??!! WOW!), to improperly designate shares that are NOT issued or NOT YET authorized to be issued, to instead be listed as immediately authorized.  Really. Someone. Contacted. The S.O.S. Office. They convinced them to modify a corporate filing. Seriously. This happened! There's a record of this interference.

Fortunately for the legitimate shareholders of HHSE, we now have some further, direct communications evidencing this interference and attempted sabotage - and as it deals with the State of Wyoming, there will be far greater criminal ramifications for interfering with corporate filings.

Previous interference that we have documented for the U.S. Attorney's office includes outreach to Hogan Taylor (auditors), ICM (Talent Agency) and to Annapurna Productions (T3K). We have identified five specific individuals that are part of a criminal cabal to manipulate OTC markets stocks. When HHSE refused to provide them with insider-trading information, they made a vendetta to try to "tank the stock." Frankly, they've been relentless and pretty damned good at it... which is their goal, in order to continue to extort and bully other OTC Markets companies into participating in their criminal scheme. HHSE has been frustrated at the speed at which the wheels-of-justice have been grinding. But we're told that the pieces are finally fully assembled to proceed legally.

Meanwhile, in order to clarify that these shares are NOT issued, and are unlikely to EVER actually become "authorized" - in order to fit into the tiny-little brain box of these idiots - HHSE will file an amended articles statement to specifically, clearly state that our authorized shares are 800-mm.  We'll make sure to use smaller words and to "write-slowly" (so that even really stupid people can understand what it means).

Geesh, these guys must really think that there's no consequence to their actions... let's test that belief.

FYI, there was nothing wrong with the HHSE filing, which transferred the ability to authorize new shares to our Transfer Agent under very special (and extraordinarily unlikely) circumstances. Corporations have the authority to increase or decrease their share structures all the time... and corporations also have the authority to appoint or assign certain powers and power-of-attorney to qualified third parties.  HHSE's corporate filing was reviewed by corporate counsel, S.E.C. counsel and the Wyoming Secretary of State before being published.  However, there's no longer a need for reserve shares, so the A/S can be more specifically clarified as being 800-mm, as stated.

Oops! Almost forgot: DARK AWAKENING will have full / national penetration at Walmart Stores!

Greetings HHSE Friends - Forgot to mention that "DARK AWAKENING" will be the first HHSE title to get full A, B and C-Store penetration into WALMART's nationwide, with the October 6th DVD/ BluRay date.  The title will ALSO be appearing in DVD format at TARGET stores, and in both DVD and BluRay formats for BEST BUY.  There is a discussion (but no commitment yet) for the DVD to be placed into the REDBOX KIOSKS.

The video packaging will be a variation on what we're calling the "Dark Girls" image - instead of the theatrical art which we have been calling "Creepy Bed."  This is because the image on a DVD box needs to work at a 9-inch size... whereas a movie poster is 41-inches tall, and more subtle imagery can still be effective.

Hey!  Here's a FUN IDEA.  Let's challenge shareholders to submit a SELFIE of themselves in a Walmart Store holding a DVD or BluRay of "DARK AWAKENING" for the street date promotion!  Apparently, purportedly, there's a small army of HHSE followers that frequent Walmart stores, so this SELFIE photo idea should be easy and fun!  To make it easier, we'll provide some PRIZES and some CLUES:

a).  WALMART is the name of a major retail chain in the USA and Canada (and throughout the world).  But don't travel internationally... just visit a Walmart store NEAR you!

b).  GO INTO THE WALMART Store and ask the greeter for directions to the VIDEO DEPARTMENT.  This is VERY IMPORTANT, because if you go to the VISION Department or LADIES CLOTHING area, you will NOT be successful in locating Hannover House and Medallion Releasing DVD and BluRay Titles.

c).  IN THE VIDEO DEPARTMENT - look for the shelving marked "NEW RELEASES."  This is also important, because HHSE and Medallion titles are not going to be in the sections marked "Televisions" or "Video Games."  Those are different products.  You're looking for DVD's and BluRays.

d).  SHOOT A SELFIE PHOTO - this is a slang term meaning "shoot a photo that shows your face in sufficient detail as to be clearly identifiable" - and it would help to "HOLD" the DVD or BluRay of "DARK AWAKENING" to show your friends that you definitely do know how to read English (those brats will QUIT teasing you about being unable to read or find your buttocks after you post this photographic proof!).

To collect your prize, send your selfie photo to:  HannoverPR@aol.com   From there, it will be properly rewarded!

FUN TIMES!!

HHSE DVD / BluRay products current on sale in more than 2,800 Walmarts and 1,200 Target Stores!

Greetings HHSE Friends - HHSE / Medallion products are currently carried in a total of 2,814 Walmarts and approx. 1200 Target Stores this week.  A few "new release" items from June placement already matured past their two-to-four week placement cycle... leaving Modular placements and budget bin items still on the shelves until the September modular reset and September New Release placements.  No single item from HHSE / Medallion is on sale at ALL A,B and C-category stores and Hometown Markets.  That usually requires a lot of theatrical momentum.  But we have a very good representation of stores in the Latino and Urban mix locations, along with key traffic "A" stores.  The item with the greatest store count this week at Walmart is ANTONIO AGUILAR COLECION, at 1,625 locations.  The item with the least number of store locations is GRAND CHAMPION at 266 locations (stores with especially high histories of selling family-appeal videos).

If time permits, we will ask one our HHSE staffers to try to consolidate the store placement report into a BLOG posting that won't take up 200+ pages.  The placement reports are per title, so there's a lot of redundancy if we were to cut and paste the gross reports.  A consolidated spreadsheet is definitely better, but will still result in a massively long blog post.  We cannot assure that this task can be completed in the next few days.

Cheers!  HHSE

How to actually MAKE MONEY releasing films to theatres!

Greetings HHSE Friends & Followers - BONOBOS is beginning its theatrical rollout today with special promotions in place by KUAF-RADIO and the Fayetteville Boys & Girls Clubs with our Walmart opening in N.W. Arkansas.

Some theatrical distributors skip opening a market like DMA #100 / N.W. Arkansas because they're not thinking past their own departmental priorities... and recognizing that WALMART and SAMS command a 50% market share of DVD and BluRay sales. But at HHSE we never ignore our key customers.  We know that it's important to have our films playing in N.W. Arkansas for the Walmart team to see and attend - to experience the film on the big-screen and with Dolby surround-sound impact!  Does this help our ancillary sales?  We think so - because on several occasions, titles that were previously a "pass" became "accepted" for Walmart... and titles that previously were "DVD Only" got upgraded to the more profitable BluRay format as additional shelf placements.

The opening of "BONOBOS: BACK TO THE WILD" at the AMC Fiesta 16 in Fayetteville is launching solid - currently the # 1 film in the multiplex.  We owe much of this momentum and success to the support of two local sponsors, KUAF Radio, and the Donald W. Reynolds / Fayetteville Boys and Girls Club - and their companion ticket promotions to encourage kids to attend.

"BONOBOS" will probably end up # 1 for the weekend amongst all films at that location... but don't be looking for some mega-impressive release announcement.  Why?  Because #1 at that particular theatre could be achieved with only $4,000 in ticket sales.  AMC is happy, HHSE is happy, but would some outside the industry recognize that this means that HHSE actually MADE MONEY?

We suspect that some non-industry outsiders look at a box office number purely by the GROSS generated, without taking into account the COST to achieve the gross.  For instance, "FANTASTIC FOUR" opened August 7 to a weekend gross of $25.6-Million Dollars.  Yaay, party, right?  $25-mm, Ka-Ching, right??  Wrong.  Why?  Because Fox (reportedly) spent over $32-million in Advertising, Promotion and releasing costs. Oh, some might say.  That shouldn't be a problem because after 12 days in the theatres, the film is now up to a gross of $45-mm.  Ka-Ching, now, right??  Wrong. Why?  Because the theatres keep 50% to 65% of the gross box office as the exhibitor's share of ticket sales (the lower percentages apply to Manhattan and L.A. central / westside... MOST of the rest of the country settles with the studio earning 40% to 45% - and bigger releases grossing over $5,000 per screen can be settled at 50% splits).  SO - Fox can expect to collect about 42% of the current grosses on "FANTASTIC FOUR" - or about $18.9-MM.  When compared to the $32-mm spent to RELEASE the film, it's NOT party-time at all in Century City.  Forget about the $100-mm investment in the film's PRODUCTION COSTS... I think many at Fox would be ecstatic just to recover the film's RELEASING investment!

So when you get a gross of $4,000 on a single screen with "BONOBOS" and you calculate that it cost HHSE about $1,000 in DCP and VPF costs, you can see that the film is actually generating "net overages" per theatre - positive (not negative) revenue.  That's good.  Not huge amounts, but not losses at all. What's even BETTER is that the true motivation for HHSE in releasing films on a limited theatrical basis is to prime the DVD / BluRay sales - as well as to qualify for the lucrative Netflix and Showtime licensing deals.

Sure, it would be exciting to have a movie gross $10-mm or more at theatres for Hannover House.  But if achieving that gross cost the company more than $4-mm in releasing costs, then the venture would be a losing proposition... and after having already invested $4-mm in such an experiment (with "TWELVE") our attitude is "let's make money" instead of "let's impress limited-knowledge, industry-outsiders with a big box office number at any cost."  That would be a stupid goal, with no benefit to HHSE. Instead, we're making money and doing it "under the radar" a few theatres at a time.  We're achieving our goal of profits and ancillary market enhancement.

"BONOBOS" will add 10-more markets on Sept. 4, and 10-more on Sept. 18.  Previous markets have been NEW YORK, WASHINGTON, DC, OKLAHOMA CITY, OMAHA, KANSAS CITY and PHOENIX.  Pittsburgh and St. Louis were moved to 9/4 (from this weekend).

"The Algerian" continues to out-perform box office goals

Happy Sunday morning to our HHSE followers - in its second week of theatrical release, the politically charged thriller, "THE ALGERIAN" continues to exceed our forecasts for its theatrical release, and is once again performing amongst the top tier of studio releases in each exhibiting location.  We are encouraged by this result, and are contemplating our options for a more significant expansion of the release (beyond "just" the top 25 markets preferred for Showtime, Netflix and other ancillary licensors that prefer theatrically released programming).

Court filing error in ELDER matter has been corrected...

Greetings HHSE Friends - some have wondered about the mysterious filing of a "Default Judgment" in the Elder Properties matter - which was fully settled and announced as such back in May.  HHSE reported back 11 or so days ago that this was a filing error - that the paperwork that was SUPPOSED to have been filed was a SATISFACTION document.

The COURT FILING will go live soon as the clerk scans in the document.  Here's a true and correct copy for you to read... onward, HHSE.

More Indie Studio Suppliers to join VODWIZ product slate!

Good afternoon HHSE Followers - Four significant indie studio suppliers were contracted following meetings and agreements cut in CANNES back in May.  Previously, the Company announced the participation of titles from XVIII Entertainment - which include titles also for theatrical and home video, in addition to VODWIZ.

We're able to announce the specific details of another supplier that will be adding titles to VODWIZ. The copyright proprietor behind the library formerly marketed under "Action International Pictures" will make approximately eighty (80) titles available through VODWIZ, including the company's best-selling action-adventure films which were the staple of their aggressive production slate in the late 1980's and early 1990's.

Regarding a consumer launch of VODWIZ - a decision has been made to start heavy promotions as soon as we surpass a "now live" count of five-hundred (500) titles.

VODWIZ and HHSE remain committed to the principle that we only have "one chance to make a first impression."  We hope that the first impression is two fold:

1). That VODWIZ has a LOT of titles, and

2). That MANY of the titles are films with commercially broad appeal.

Frankly, while there are significant (and specific) markets and fans for the many sci-fi, horror and action films already under license (and uploaded / or being uploaded), we believe that the site will benefit from the professional panache' of some recent, major theatrical titles populating the home page graphics.  Yes, the current HHSE theatrical releases will be present - but the VODWIZ intent is to have several "wide" release titles from suppliers (already under contract) to sizzle-up the home page.  The roster of what is now 3,720 titles is impressive... but not many were nationwide theatrical titles.  So we're going to put our best-foot forward when launching this consumer outreach.

Stay tuned for more VODWIZ updates on Sunday.

	FEATURE FILMS			FEATURE FILMS (continued)
1	Alien Seed		46	Maximum Breakout
2	Armed for Action		47	Mission Kill
3	Black Snow		48	Nightwars
4	Blood on the Badge		49	Operation Warzone
5	Bootleg		50	Order of the Eagle
6	Born Killer		51	Phoenix: The Warrior
7	Bounty Hunter		52	Presumed Guilty
8	Brutal Fury		53	Project Vampire
9	Burning Vengeance		54	Rage to Kill
10	Center of the Web		55	Rapid Fire
11	Code Name: Vengeance		56	Robo-C.H.I.C.
12	Dance		57	Saxman / The Revenger
13	Dark Rider		58	Shooters
14	Dead End City		59	Shredder Orpheus
15	Deadly Dancer		60	Space Mutiny
16	Deadly Manor		61	Street Hitz
17	Deadly Reactor		62	Sudden Thunder
18	Deadly Prey		63	Suffering Bastards
19	Death Chase		64	Teenage Exorcist
20	Death House		65	That's Action
21	Death Merchant		66	Timeburst
22	Desperate Crimes		67	White Fury
23	Dirty Games		68	Zipperface
24	Double Threat
25	Ex-Cop
26	Elves
27	Eternal Fist			SPECIALTY VIDEOS
28	Eye of the Snake		1	Baja's Giants of the Deep
29	Fatal Skies		2	Bullrider
30	Final Sanction		3	Cameras in Motion
31	Firehead		4	Hyopnosis
32	Foxy Boxing		5	Joni Mitchell (Music Videos)
33	Future Force		6	Meditation: A Light in the Darkness
34	Future Zone		7	The Last Frontier
35	Hell on the Battleground		8	Thin Lizzy (Music Videos)
36	Hellmaster		9	Triumph (Music Videos)
37	Invasion Force		10	Truk's Legendary Lagoon
38	Island of Blood		11	UFO's and Channeling
39	Jungle Assault		12	Warlock (Music Videos)
40	Last Flight to Hell		13	Wrathchild (Music Videos)
41	Lethal Games
42	Letting Go
43	Lock and Load
44	The Lost Platoon
45	Mankillers

HHSE makes HUGE SCORE with Six-Title Package to IN-DEMAND!

Greetings HHSE Friends & Followers - As Hannover House expands its presence in the digital, streaming and pay-per-transaction media, the biggest outlet for years had remained elusive.  Now, however, we can proudly add "iN DEMAND" to our family of V.O.D. service providers - and in doing so, increase the streaming access to our titles by more than 500%.  The initial package of Six (6) titles will launch availability in October, with the current theatrical releases rotating into the programming mix in November and December.  HHSE now has the access to place all appropriate programs onto iN DEMAND - and will update this blog with title additions for January, February and March.

iN DEMAND has been described as "The Walmart of the the digital streaming industry" in reference to its importance and enormous marketshare.  The company is owned by cable behemoths COMCAST, COX COMMUNICATIONS, TIME-WARNER CABLE and ADVANCE / NEWHOUSE.

HHSE - General Updates and Responses to Shareholder Questions - Aug. 13, 2015

Good Afternoon HHSE Followers - In response to shareholder emails and calls, here is a brief update on items of inquiry, listed in no particular order of priority:

*  What's the status of the Revised FORM 10 Filing?

ANSWER:  HHSE has completed the extensive notes / comments and revisions that were discussed with the S.E.C. from the previously filed draft.  HHSE has engaged a reputable, PCAOB accounting firm to handle the 2013 and 2014 audits (previously, Terry L. Johnson had handled 2012 and 2013 audits).  Without appearing "flip" - HHSE management is confident that the revised Form 10 will be released "soon" and without any advanced notification to the market.

*  It appears that the full Q2's will not be filed "early" as previously planned... but will they be posted by the OTC markets deadline (e.g., on or before August 15)?

ANSWER:  Despite setting an early filing goal, the actual time-demands for the Company's current release activities took priority over beating a mandatory filing date.  So yes, the Q2s will be filed in time, but not early.

*  Can you please explain the "Reserve Shares" amendment to the Articles of Incorporation, and what this means in the real world?

ANSWER:  One of the issues addressed during the S.E.C. discussions relating to the previously filed Form 10 - and the unusual loss of PCAOB certification status for an auditor - was that HHSE had not properly created a mechanism for "Reserve Shares" in the event that existing convertible notes at that time COULD be converted for more shares based on PPS levels.  The creation of a Reserve Share mechanism meets the requirement of having a pre-authorized structure in place without having to change the A/S for this unlikely occurrence.

*  What sort of Dilution or Debt-Conversion Activities are anticipated?

ANSWER:  Horrible day for HHSE - as, despite a lengthy stalemate and press for alternative settlement -  we were informed this afternoon that the transfer agent (Standard Registrar) had accepted the power-of-attorney demand for conversion shares from Magna (re: TCA GLOBAL MASTER FUND), resulting in their demand for debt conversion shares.  PLUS in two, separate and badly-timed transactions, both JSJ and Blackbridge have each notified Standard Registrar of the conversion of 2014 and older debts notes into shares. Accordingly, approximately 15-mm shares have already been added to the overall, available inventory of HHSE Common Stock, and approximately 10-mm shares in addition may be demanded for issue under these power-of-attorney demand provisions. We believe that these transactions were all timed by the note-holders to be processed in order to occur prior to the Aug. 15, Q2 filing deadline, for OTC Markets Current Status Reporting Requirements - perhaps "just in case" HHSE did not meet the filing deadline.

It's difficult to see a "good side" to these three transactions, because the share price is so currently low that the dilution is a disproportionate pain to the benefit of debts.  But as some will ask, what benefits have been achieved as a result?  TCA will have been reduced by $50k, National Bank of California by $50k, and five smaller debt holders have been reduced through payments and negotiated settlements by an additional $226,250.  The total debts carried on the balance sheet will show a reduction of $326,250.  Each of these transactions would have been far less painful had the PPS for HHSE been stronger than it is today - but with the company's delays in refiling of the Form 10 - and management time being demanded for new release duties - the PPS has suffered and the timing of these transactions has been horrible.  

AS OF THESE CONVERSION TRANSACTIONS - THERE EXISTS ONLY ONE MORE AGING NOTE (which is for a modest sum of $25,000 and which HHSE plans to pay off in cash before it's maturation in October).  As for the remaining balance due to TCA ($156,000), HHSE is working to create a mechanism for the accelleration of receivables from NETFLIX licenses - in order to pay off TCA in CASH rather than carrying the painful burden of them forcing a share conversion.  It is not necessary to email or call Shefte and Parkinson to express shareholder disatisfaction for these transactions;  the officers share this sentiment and fought to stop these from occurring.

*  Can HHSE explain how "T-TRADES" could occur over the past several days if no new shares had previously been issued under dilutions?

ANSWER:  Since no new shares have hit the market, HHSE Management is informed that such "T-TRADES" that clear after the normal market closing, are likely to only occur only through the following means:

a).  "SHORT" SELLERS, in hopeful antidipateion of eventually being bailed out with new shares;

b).  "INTER-ACCOUNT MANIPULATION" - Trades created to falsely imply dilution - similar to the manipulative "paint-downs" of tiny share quantities sold to themselves, which are often tried against HHSE in an attempt to create the false impression of a lowered PPSE value;

c).  ACTUAL DEBT-TRANSACTION HOLDERS - Trading "AHEAD" of actually receiving shares;

d).  OFFICERS SELLING their restricted shares;

*  So, are the HHSE officers "selling" any of their shares?

ANSWER:  NO.  The HHSE Officers are confident that reality and logic will prevail and that the PPS will see a nice rebound.  It would be DUMB to sell at the current, historically low pricing - if either Parkinson or Shefte were interested in selling instead of accumulating.

*  What's happening with the Company's Theatrical Releases?

ANSWER:  "DARK AWAKENING" has about 25-more cities / locations to play before its October 6 release to DVD and BluRay;  "BONOBOS" opens in five markets tomorrow (Kansas City, Oklahoma City, Omaha, Phoenix and Pittsburgh), with 20 more markets on Aug. 21 / Aug. 28 / Sept. 4;  "THE ALGERIAN" has been held-over at the Regal Majestic 20 in Silver Spring, MD (DC Market) and opens tomorrow at the U.A. Staten Island 16 in the NYC Metro;  three additional NYC theatres will be added Aug. 21 / plus 10-additional markets on Aug. 28 / Sept. 4.  NEW THEATRICAL LAUNCHES for CMD, GREEN APPLE and other suppliers will have separate new release announcements.

*  VODWIZ update, please?

ANSWER:  Uploads for an impressive Consumer Launch have gone frustratingly slow, for a variety of reasons, from technical formatting to prioritization for the applicable parties.  As stated previously, HHSE is currently not properly staffed to move this project along faster... and incoming receivables are being prioritized to fill the company's growing demand for DVD and BluRay products (leaving little left for investment in staff and operations of VODWIZ).  It may be worthwhile to create a separate credit arrangement through a bank or traditional lending instution - in order to better capitalize the VODWIZ needs without cannibalizing the company's core activities and cash needs.

NYC Subways - including TIMES SQUARE, UNION SQUARE, PENN STATION and many more!

ALGERIAN out-trumps TRUMP, and is MORE Fantastic than the FANTASTIC FOUR!

Greetings HHSE Friends on this lovely, Summer Sunday.  This weekend's initial box office results for "THE ALGERIAN" single screen exclusive in Washington, D.C. are solid (Regal Majestic 20)... and the title is currently ranked # 2 in the multiplex behind MISSION IMPOSSIBLE (but ahead of new studio releases: FANTASTIC FOUR and THE GIFT).  Although Regal policy prohibits the release of specific gross amounts for single screen exclusives (for competitive reasons), we are pleased with the results and expect that this will help set the stage for an even more successful roll-out and expansion of the film.

"The Algerian" launches in DC Tomorrow (Friday, Aug. 7)

KABOOM!  Full Page COLOR ad in the WASHINGTON TIMES for tomorrow's edition... ads also appearing in Washington City Paper, Washington Blade and feature coverage in Washington Post. The DC Metro Subway System has 57 Billboards and Digital Signs throughout the beltway... AND... the key cast and director are appearing at the 7:05 pm Show!  GO HHSE!!

Tickets for THE ALGERIAN Now on Sale - Meet The Cast & Director on Friday!

Key cast members, along with Producer-Director GIOVANNI ZELKO, will be present at the USA Theatrical Premiere of "THE ALGERIAN" this Friday - at the Regal Majestic 20 in Silver Spring, MD (Washington, DC Metro).

Here's the URL for the Fandango Ticket Pre-sales:

http://www.fandango.com/regalmajesticstadium2026imax_aaron/theaterpage?date=8/7/2015

Here's the Official Website:  

www.TheAlgerianMovie.com

COULD BE A HAPPENING EVENT!!

The Major Theatre Chains & Top Grossing Locations Step Up Big Time for "Bonobos" Expansion

HHSE is humbled by the enthusiastic support of the Major Theatre Circuits in offering so many of the highest grossing multiplex locations in the USA for "Bonobos: Back to the Wild."  Watch for more details and live ticket links to the BonobosMovie.com website!

How do you get to there from here?

Greetings HHSE Friends, Shareholders & Followers - Whoever first coined the phrase "be careful of what you wish for," may have been forecasting the outrageous workload that has be vested upon HHSE Management as a result of the Company's dramatic increase of activities in 2015. The physical and logistical requirements of fulfilling all of our new DVD and BluRay orders - along with theatrical release activities, corporate governance and new ventures - has left little time for our customary blogging... which has fallen from nearly a daily basis in the recent past, to only about once a week at present.

We believe that the last of the big time-suck hurdles are about to be cleared, and that this will create more time for shareholder outreach, blogging, communications, IR and PR.

Speaking of blogging - Friday's planned blog got pushed into Saturday, which got pushed into Sunday - all in favor of the 7-days-a-week schedule now required for the maintenance of theatrical releases, video slate, the VODWIZ launch and the corporate filings.

Meanwhile - and in specific response to Shareholder emails on topics - here's a brief recap of items listed in order of quantity of emails received about each topic. It seems that what the Company has been posting and PR'ing about the MOST (which has been our aggressive video and theatrical schedule - as well as our impressive results!), has been fairly thoroughly answered... leaving only a few projects in the dark as far as shareholder updates:

1).  RE-FILING OF FORM 10 AND NEW AUDITS.  Yes, this is still the #1 Corporate Governance priority. Yes, we have a great PCAOB Certified Firm. Yes, they are 'almost done.'  No, there are no obstacles or issues impacting the project's completion and filing. No, the new auditors did not complete their work by our internal target date of July 31st. But we are told that the completion is 'very close,' and we will re-file the new-and-improved Form 10 very soon.

2).  VODWIZ.  The process of uploading and on-boarding titles has proven to be about as fast for HHSE as the rate that Netflix can add new titles... which is slower than we had hoped for.  We want to launch the consumer campaign with 'as many titles live on the site as possible.' It is our feeling that we only have one chance to make a first impression on consumers... and that 100, 200, 300, even 400 titles will not be as powerful of a draw for signing up (and returning to the site) as a much larger library of titles. While it's comforting and exciting to know that deals have been made for literally 1,000's of films and TV episodes... and the on-boarding of masters and meta data has been more labor intensive and time-consuming than hoped for. Would the on-boarding and subsequent consumer launch go faster if we threw more money at it? Assuredly, and this is a topic of discussion and prioritization.

3).  THEATRICAL RELEASES.  At present, HHSE has two titles in theatrical release, and as of this Friday, we will (for the first time ever!) have THREE titles playing in multiple theatres at the same time ("Dark Awakening", "Bonobos" and "The Algerian"). For the time being, HHSE has elected to keep our theatrical grosses confidential and not released to the trade publications. Is this because our grosses are incredibly huge? Of course not. It's because our grosses are EXACTLY as forecasted, which when measured by themselves look tiny compared to "Mission Impossible: Rogue Nation" on 4,000 screens... Our theatrical releases have been designed with three primary tasks in mind:

a).  To Satisfy the Release Requirements for obtaining the large license fees from Netflix and Showtime;

b). To elevate the stature and awareness of the releases to help with DVD and BluRay placements; and

c). To create the opportunity for titles to surprise us, break-out, and genuinely hit a nice box office revenue number.

To date, only "a" and "b" above apply for HHSE titles. We have not yet had a break-out theatrical hit.  But as long as "a" and "b" apply, it really doesn't matter. Our success is being measured by the bottom-line performance of these titles from all media revenues. .. not by how much a single-screen exclusive engagement can make. When will HHSE have our breakout title? Hard to say. How many years did it take before New Line Cinema hit with "A Nightmare On Elm Street?" - how many years before Artisan launched "The Blair Witch Project?" - how many years before Summit came out with "Twilight?" Each of those companies were only "one-title away" from becoming major media players.

4).  TCA GLOBAL MASTER FUND.  HHSE Management continues to strive to maintain a reasonable working relationship and resolution with TCA. It has been difficult as the structure of the deal contained onerous default provisions that some would classify as toxic, usurious or intentional. The HHSE balance has already been reduced by more than 50%, and the pay off and satisfaction could be just three months away from internal cash flows or a combination of conversions (which is not the HHSE management preferred payment manner). A much faster resolution for TCA than a three month workout is in motion:  there is a discussion underway with two separate parties to create a mega-fund for HHSE - a small portion of which would be used to immediately retire the TCA balance, and to also wipe out $3.5-mm of total debts. As it is being structured, this mega-fund would be repaid from revenue cash flow, but would include a conversion options triggered after 12-months and based upon preset PPS pricing thresholds. HHSE would have the ability (but not the mandatory obligation) to repay the mega-fund prior to the note maturation.

The financial analysis of the release schedule and current cash flows indicates that the elimination of the debt burden and managerial distraction of dealing with the old debt - when combined with the Company's dramatically increasing revenue flows - will enable the mega-fund note to be fully paid off in a year, without triggering a diluting stock conversion option. Both of the funding parties that are offering this plan have indicated that they will require that HHSE make some changes:  a). The hiring of an experienced public-company Chief Financial Officer;  b). The requirement that the Form 10 be filed expeditiously, but not prior to the closing and funding; c). The HHSE Board be increased to at least three (and preferably five) members;  d). That a separate "President" and general manager for the VODWIZ division be hired and paid for with a portion of the funding proceeds.

Way too much managerial time has been spent struggling and juggling with very old debts - most from the "Twelve" fiasco in 2010, and some pre-dating the Target Development Group, Inc. merger with Hannover House in December, 2009. The company has already eliminated over $3.5-million in debts, with another $600,000 in debt reductions during the first half of this year alone... but some small vendor issues remain as annoyances and time-distractions that stop the HHSE management from completing the important high-altitude goals and ventures for the company. Some small vendor issue here-and-there arise to the gleeful exuberance of stock-bashers, but none of which have EVER created anything more than a temporary distraction from the road map for the company's successful course. The sky never has been falling, but the debt burden could be likened to drizzle, rain and occasional pieces of hail onto our HHSE parade and march to success.

The concept of bringing in a top CFO, eliminating almost all debt, creating a revolving releasing fund, upscaling the Board size and stature and treating VODWIZ like the $100-Million Dollar division it is capable of becoming all make great sense... provided that the deal for such a mega-fund is reasonable and not toxic in structure.  In this respect, HHSE Management will seek sage counsel to analyze any such venture before proffering for a general shareholder response.

Each of the Company's core activities (except for book publishing) have been profitable during the past five years. There have been notable losses (such as the acquisition and release of "Twelve"), but the concept of limited release theatricals (with limited expenditure) makes financial sense, as do the numbers for our DVD / BluRay and V.O.D. release activities. New ventures into original (theatrical-caliber) productions make sense from the revenue potentials for theatrical, physical and digital both domestically and internationally - while also providing a longer-term asset for the balance sheet and film library. And the VODWIZ concept of "we have 1,000's of hard-to-find titles" (combined with an offering of theatrical hits for sizzle), could become the tail that wagged the dog. But all of these profitable activities require CASH for growth... and if most of the current cash-flow collections are being allocated or attached to pay off old debts, then the Company's growth is slowed tremendously. Eliminating these old debts would free up the cash flow to be reinvested in creating value and more revenues... and the enhanced revenues could be used to pay off the mega-fund debt. It's a long-term solution to totally fix the structure, instead of a short-term band-aid of pursuing unpopular "debt conversions" that wipe out only tiny bits of distraction at $50,000 to $100,000 at a time. The mega-fund structure offers a real solution instead of more-of-the same. That's why it's being so seriously considered and pursued by HHSE management.

There are some really smart and really well-funded finance & media people looking at strategic partnerships with HHSE right now. They see a company with a $100-million dollar revenue potential that could significantly benefit from the availability of resources for growth. We agree.

5).  HHSE STOCK PRICE.  Last but not least, some shareholder emails have expressed great concern about the HHSE Stock Price. As major shareholders, both Parkinson and Shefte would also prefer that the stock be trading at $.10 per share rather than $.01 (or less). There has been a lot of evidenced gathered about stock-boxing and other manipulative practices, usually timed with the periodic covering of short-sale interests. All it takes is a little buying pressure to pop those fake walls. And if those working to box-the-stock price get hurt enough times with forced-to-covers, their enthusiasm to scavenge on HHSE longs will be transferred over to another OTC equity. We know what the company is worth and what the company is doing to become a major media enterprise. The HHSE PPS pricing right now is completely illogical and not based on any real-world values.