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Thursday, October 16, 2014

Miscellaneous Updates - Info Requests from Shareholders

Good Afternoon HHSE Friends & Shareholders.  Crazy "GOOD" day today, including the already released news of our receipt of the private funding portion of the "MOTHER GOOSE" production.  Here are a few updates as requested by various shareholders covering a wide range of topics (and listed in no particular order of importance):

1).  EXPLAIN THE MOTHER GOOSE "PRIVATE EQUITY" DEAL - someone wanted to know if this meant that HHSE is issuing $3-mm in shares.  The answer is a very clear NO, there is no HHSE "share" component to the private investor commitment of $3-mm for this film.  The "private equity" component is equity in this specific FILM, not equity into Hannover House.  This specific financing item has been a critical component as it triggers the other funding commitment elements.

2).  WHEN WILL PARKINSON & SHEFTE RECEIVE THEIR FORM 4 SHARES? - As of this date, neither Parkinson nor Shefte have requested the issuance of their share certificates, although each holds an irrevocable authorization to receive these shares.  Neither officer has any plans to sell the shares - which would be restricted under Rule 144 in any case (and therefore NOT be 'in the float'), and there is no urgency or benefit to immediately issue them.

3).  WHAT IS THE STATUS OF THE AUDIT AND FORM 10 PROJECT?  - The Form 10 filing is completed and updated.  The audit letter is expected in the next few days and will accompany this filing.

4).  WHAT IS HAPPENING WITH THE ENFORCEMENT ACTIONS AGAINST HHSE SHARE PRICE MANIPULATORS? - HH has been instructed to send letters to known bashers in order to establish legal notice of demand; otherwise, we have been instructed to not comment publicly on the status of the investigation and federal prosecution activities. It is okay to say that we are VERY EXCITED as to where this situation finally stands.

5).  COMPLAINTS ABOUT EXCESSIVE CONTACTS TO TRANSFER AGENT - HHSE has been asked by Standard Registrar & Transfer Co., Inc. to require all inquiries about share structure and other HHSE Stock issuance matters to be made by EMAIL only, and not via telephonic request.  Please email future requests to: Amy@StandardRegistrar.com

Final production funding commitments received for MOTHER GOOSE!

HHSE is pleased to announce the closing of an agreement for $3-million in private equity financing for the company's epic 2015 project, "MOTHER GOOSE: JOURNEY TO UTOPIA."  This equity financing element was an essential trigger to supplement international presales and state incentives for the film's total production budget needs.  Principal Photography for the film will commence in Q1 (2015) with a major theatrical release planned for Thanksgiving 2015 (more than 1,000 screens are pegged for this first "tentpole" release from Hannover House). Watch for exciting news on the film's casting additions, director and production team (including a co-production venture with a major visual effects house). 

While the company will not abandon the core activities of direct-to-video or limited-release theatrical titles, it's been known for some years now that the goal of major revenue growth will require higher profile, wider-release theatrical titles. 

"MOTHER GOOSE: JOURNEY TO UTOPIA" is family friendly for theatres, and genre' friendly for the international markets.  Various book collections of "Mother Goose" rhymes have sold more than 100-million copies worldwide, ranking the publication unit sales as the #3 best-selling characters of all time.  Let's see if this title becomes the HHSE "Twilight" that launched Summit from a small indie studio to $500+million in revenues (and now, a key component division of LIONSGATE!).

Wednesday, October 15, 2014

HHSE Sets Theatrical Plans for Acclaimed "BONOBOS" Feature

The critically-praised French feature production of "BONOBOS" (starring naturalist Claudine Andre') will be reaching THEATRES and MUSEUMS in the USA beginning in February, 2015 from Hannover House. The release pattern of mixing both commercial release theatres with Natural History Museums is uniquely designed to maximize visibility and revenues prior to the film's home video and video-on-demand release.  Key theatrical markets include New York, Los Angeles, Chicago, San Francisco, Boston, Washington, D.C., Dallas, Philadelphia, Atlanta, Seattle and Portland.  Museum exhibitions are being negotiated with the Smithsonian Institute, The Chicago Museum of Natural History, The Los Angeles Museum of Natural History, and a variety of Children's "discovery" style museums.

Claudine Andre' is a rapidly rising star in the worldwide conservation community.  She formed the Lola Ya Bonobo Rescue Center in the Congo more than 20 years ago, and has since saved over 1,000 orphaned, captured or injured Bonobo Apes, with hundreds now being reintroduced into the wild.  Claudine Andre' will be assisting with the Hannover House release by participating in major media interviews and feature stories, and attending the USA premiere of the film at the Lincoln Center in New York City.

http://en.wikipedia.org/wiki/Claudine_Andre



Wednesday, October 8, 2014

HHSE extends product reach, K-Mart, Costco and more!

New Wholesale Distribution Pacts Provide Hannover House with Direct Access to Major Retailers

Oct 08, 2014

OTC Disclosure & News Service
Bentonville, AR -
Independent entertainment distributor Hannover House, Inc., (OTC: HHSE) has entered into wholesale distribution agreements that will provide the company with more direct access to major retailers including Target Stores, Best Buy, SAM's Clubs, Costco, K-Mart and Barnes & Noble.  The wholesale relationships, which were pursued and implemented by Hannover House and Medallion Releasing V.P. of Sales, Tom Sims, will provide greater opportunities to merchandise titles and to participate in retailer promotions, the company said.

Previously, placement of Hannover House DVD and Blu-Ray titles into these accounts was channeled through a network of agents and brokers, resulting in only occasional success.  The new structure with direct-vendor wholesalers provides a more efficient conduit to these retail shelves.

Hannover House DVD titles have enjoyed tremendous success through placement at Walmart Stores over the past twelve years since the company added home video products to its publishing line.  Redbox, Netflix, Allegro Music and wholesalers servicing schools and libraries have comprised most of the balance of home video sales for Hannover House until recently.  The addition of Tom Sims to direct sales activities has enabled the company to open relationships with a wide range of wholesalers and retailers that were previously considered placement challenges.  Other accounts added recently by Hannover House and Medallion include Family Video, Harps Foods and Hastings Entertainment.

"Wal-Mart represents nearly half of all the home video sales in the U.S.A.," said Hannover House C.E.O. Eric Parkinson.  "But their national market-share for sales of independent movies, comparable to many titles in our catalog and schedule, can often drop to under thirty percent when these other retailers step up with support.  Tom has done a superb job of opening new wholesale and retail channels for titles being released by Hannover House and Medallion Releasing, and this will be evidenced by our growing revenues," Parkinson concluded.

Prior to joining the company in June, Tom Sims had worked for thirteen years as the Wal-Mart video buyer for Anderson Merchandisers, and later established multi-studio sales ventures for Allegro Distribution and Vivendi / Universal Music Group.  The formation of Medallion Releasing is designed to replicate the successes of the later two ventures, by providing an efficient sales pipeline for independent home video labels to reach major accounts.

Hannover House is a full-service entertainment company, active in all aspects of the industry.  In addition to the company's home video distribution activities, Hannover is expanding its theatrical release slate, beginning with the November 7 nationwide launch of "On Any Sunday: The Next Chapter" to over 250 theatres, in a partnership with Redbull Media House, North America, the film division of the Austrian beverage brand.  The company recently launched an international sales division, Medallion International Pictures, and has added e-books to its established book-publishing activities.  Hannover House is traded on the OTC Markets under the ticker symbol HHSE, and has been profitable for each of the eighteen calendar quarters since becoming publicly traded in January, 2010.

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.

Monday, October 6, 2014

HHSE hits another bullseye with Target!

It's taken several years, but Hannover House has finally set-up new release titles for placement into Target Stores across America. With over 1,900 locations and a home entertainment industry marketshare of almost 10%, having HHSE videos available at Target is a major development for the company. Initial items include American Justice, Dinosaurs of the Jurassic, On Any Sunday: The Next Chapter and Yoga Fit (starring Allie LaForce).

HHSE VP of Sales, Tom Sims, sees the addition of major retailers such as Target and Family Video as crucial steps for growing revenues and market share.

Stay Tuned for more...

www.Target.com

Thursday, October 2, 2014

HHSE Officers Stock Purchase

Good Morning HHSE Friends & Shareholders.  This has been an amazing week at Hannover House, and one that we feel is the first of many to come.

As some of you already know (from HHSE filings to the OTC), both Eric Parkinson and Fred Shefte have purchased $200,000 worth of restricted HHSE common stock at a price of $.031 per share.  The Form 4 for Shefte has already been published; the Form 4 for Parkinson was delayed due to a filer's identifying number error, that goes back to 1995 when Parkinson was CEO of Hemdale Communications, Inc. (NASDAQ).  The Parkinson form has been corrected and is expected to be filed tomorrow.

The officer purchase of shares was intended as a mechanism to provide financial relief to HHSE without the pursuit of unpopular (and painful) "debt-conversion" ventures.  As has been oft-stated by management, based on industry P/E formulas and baseline valuations, the HHSE stock carries a value of $.10 per share, and logically should be trading in the $.06 to $.10 range.  Purchasing shares at $.031 each is a premium price over the current "open market" pricing for shares... but it's still only half of what management feels is the baseline value of shares.  The purchase price was deemed to be fair and reasonable based upon management's knowledge of the company.  A lower price - while theoretically available on the open-market - would not have provided funds to the company and would not have been made at a logical and fair price per share.

Other big events for the week? 

Well first of all, never underestimate the logistics and complexity of getting posters and trailers of ON ANY SUNDAY: THE NEXT CHAPTER into the hands of 262 theatre managers and projectionists. We are so pleased to have that massive mailing off our docks (we'll post some theatre displays and trailer big-screen grabs next week!).  While all those kits and calls were happening, Tom Sims and Caitlin McKenzie were busy with release slate plans for February, March and April - selecting titles, making announcements and flyers, etc... Then, to add another dimension of activity to the HHSE offices, Josh Irwin and Katherine Mills were hiring cast and crew for a production shoot that starts on Monday for HHSE.  It has been so busy here that some staff have been parking over a block away from the office!  All of these activities and more will be updated separately. 

Have a GREAT day! 



Tuesday, September 30, 2014

HHSE scores major new account with FAMILY VIDEO!

"VALLEY OF THE WITCH" and "POSSESSION WITHIN" are the first new titles from Hannover House to be placed into the rapidly growing FAMILY VIDEO chain!  Although many pundits declared that "video rental specialty stores" were dead after Blockbuster corporate closed, the reality is that FAMILY VIDEO keeps on growing-and-expanding to new markets.  This Glenview, IL (Chicago)-based chain now has 802 stores in the USA, with dozens more planned for the coming months.

How can Family Video achieve this success in an evolving industry?  According to a survey of Family Video customers, their customers PREFER the opportunity to browse a video store environment in search a rental DVD to discover.  Viewing only a handful of titles that are available through KIOSKS or (current) STREAMING SITES does not give these movie consumers the breadth of selection that they want from home entertainment.  Sounds sort of like the VODwiz market analysis... except that Family Video is fulfilling the consumer demand with bricks-and-mortar physical stores, over 8,000 employees, and close to a billion in revenues!

Hannover House continues to add major accounts like FAMILY VIDEO, HARPS, KROGERS and LOVES to our list of key retailers.  While Wal-mart, Redbox, Netflix and Best Buy continue to dominate the HHSE quarterly sales, having a broader base of retail customers creates greater revenues and greater stability as the company grows!