Various Updates - HHSE - As of Dec. 1

Greetings HHSE Friends & Followers - Here's a super brief recap of some relevant items and issues as requested by shareholders:

1).   WALMART PRODUCTS - At present, we have six (6) items into Walmart stores in the USA and four (4) items into Walmart Canada.  As of January, we will have three (3) new releases added to this mix (LOST IN THE PACIFIC, PALI ROAD and DINOSAURS OF THE JURASSIC), although we cannot predict how many (if any) of the current titles in the stores will be held-over for January.  There are three additional items that will also be added to the February "modulars" (which is the in-line shelving, organized by genre and alphabetically), which is a separate placement from New Release shelving or New Release end-caps.

2).  STOCK BUY BACKS - HHSE has made direct purchase agreements with three, non-affiliated shareholders, to purchase 1.2-million shares at $.01 each.  These shares will be retired into treasury stock.  As long as the share price remains artificially low, we will continue to buy shares and retire them to treasury, as cash permits.  The Company had to delay the process of buying back shares due to the loss of cash flow from the bankruptcy of Alchemy / Anderson, and the non-bankruptcy cram-down of Allegro Music Group.  While the financial woes of those two wholesalers did impact cash flowing into HHSE, it was most notable for optional issues, such as stock buy-back opportunities, as the Company has otherwise managed it's operations and payables through other cash flow means.  It is also notable that HHSE has not issued a single share of stock in over a year (for any purpose), and that the two principal managers (Parkinson and Shefte) have not sold any shares in three years.  As a non-reporting entity, HHSE is not required to file a Form 8 regarding the stock buy-back... but we will disclose this in our upcoming year-end filings and the Form 10 registration.

3).  LEGAL UPDATES - HHSE attorneys continue to work with the TCA Attorneys to finalize the settlement terms.  As a procedural matter, the October 20 hearing was rescheduled, with the expectation that a formalized settlement will be filed well before the court's next available hearing date.  With respect to JSJ - a settlement based on the actual value of the notes plus the maximum allowable interest is being completed and will be filed with the appropriate courts.  Regarding the "D.C. Photographer's Case" - the court has extended until Dec. 15 the opportunity for HHSE to file a motion for dismissal of the matter, which is being accompanied with a payment of $1,000 for the work-for-hire services rendered.

4).  CORPORATE MOVE - The old warehouse location only holds pallets and racks at this point, and will be fully vacated by next week.  The new executive offices are fantastic and extremely conducive for productivity and efficiency.  While all the boxes and files are moved into the new offices as of today, there's still a week or two of "unpacking and filing / sorting" before we can declare the new space 100% functional.  We will shoot some photos and post to the blog late next week.

Much more to come...  it's been a long journey, with many bumps in the road... but it's looking like a smooth cruise-control ride at this point!

Standard Registrar

At the request of a variety of shareholders, we can confirm that there is NO stock issuance activity whatsoever to create additional shares or dilution in HHSE. The company has NOT issued any new shares, the company has NO PLANS to issue new shares, and NO previously "restricted" shares have "come off" restriction.  The stock structure has not changed in over a year.

Thanks!

Re: TA Thu, Nov 17, 2016 11:52 am

From	Amy Merrill amy@standardregistrar.comhide details
To	Eric Parkinson hannoverhouse@aol.com Eric, We have not had any recent transactions that would change the float. Thank you, Amy Merrill WE’RE MOVING November 21, 2016 We will be in our new office  440 East 400 South – Suite 200 Salt Lake City, UT  84111

Ongoing Industry Coverage of HHSE ventures.

From today's AFM Screen Daily;

http://m.screendaily.com/5111138.article

In other news - Move into executive office suites is 80% complete; Walmart sales on five current DVD titles is going well (two are already into "re-order" Mode);  set and character designs on MOTHER GOOSE is on schedule (and look amazing!); much more to follow.

The day before the big move!

Good morning HHSE Friends & Followers - As disclosed previously, Hannover House is moving our executive offices to 300 N. College in Fayetteville.  We have taken approximately half of the top floor penthouse level, adjacent to Butler Broadcasting Center (top rated local radio station operators), and have terrific views of Fayetteville, the University and the Dickson St. Entertainment corridor, visible from both Fred Shefte's and Eric Parkinson's offices. The painting is complete, and the carpet cleaners are busy at work. The big furniture move is tomorrow, and the porting of the telephone lines is Thursday.

Parkinson and Shefte both wish they could say "we'll miss the Springdale warehouse offices," but as public company officers, we are required to be truthful at all times, even in polite circumstances. Frankly, the invasion of 19 raccoons 2-years ago, left a lingering "tang" to the warehouse air - and these old offices were never nice enough to invite VIP guests, program suppliers, celebrities, or even Parkinson's brother, former Kansas Governor Mark Parkinson.

When the opportunity to relocate the warehousing was presented, this opened up the chance to have top quality executive offices, no raccoons, and a far better location. Change can be very good.  Onward, HHSE!

Selected Photos of some of the new offices:

HHSE Offices, Top Floor, Western Facing Windows

Front Entrance & Reception Office

Accounting Office

View from Executive Suite # 1

Executive Suite # 1

Technical Services Office

Executive Suite # 2

Hallway (will be lined with shelves)

Restrooms / Kitchen Facilities