LONDON and FRANKFURT--(BUSINESS WIRE)--March 27, 1998--
(Music and Record Producer, Publisher and Distributor)
(NASDAQ: IEGP and FRANKFURT)
Business: The company's principal activity is the production,
acquisition and distribution of audio and video products
including CDs and CD-ROMs.
The Board of Immediate Entertainment Group, Inc (NASDAQ:IEGP and FRANKFURT) announces that they have filed the company's initial Form 10, covering the period from incorporation to 30 June 1997.
For the year ended December 31, 1996, and the year ended December 31, 1997, the Company and its wholly-owned subsidiaries realised net sales of US$ 390,769.00 and US$ 3,632,885.00, respectively.
The Company's net loss in these periods totalled US$ 286,038.00 (US$ 0.14 per share) after depreciation and amortisation costs of US$ 587,431.00, and $US 302,211.00 (US$ 0.05 per share) after depreciation and amortisation costs of US $211,204.00 respectively.
Commenting on these results, President & CEO Michael Berresheim said: "The company has consolidated its recent acquisitions and further expanded its sales opportunities and therefore these results are well within our planned budgets.
"We are confident that with the unprecedented opportunities currently available within the music and entertainment business, that the next twelve months will show dramatic growth for the Group."
CHIEF EXECUTIVE OFFICER'S REPORT
There have been a number of significant developments at IEG since its initial incorporation as Diversified Research Inc, in April 1996. On 10 March 1997, the name of the company was changed to Immediate Entertainment Group, Inc.
In June 1997, the acquisition of the Beacon Studio Management Corporation catalogue gave IEG the benefit of 4,000 record masters covering a wide variety of musical styles.
In August 1997, IEG became the first independent music company to trade on the Frankfurt Stock Exchange when it received notification from BERLINER FREIVERKEHR AG that permission had been granted by the Association of Frankfurt Securities Dealers to start trading in the shares of Immediate. Trading on the Third Market Segment of the Frankfurt Stock Exchange commenced on Tuesday 2 September 1997.
The Company acquired on 17 December 1997, from Music Avenue of America Corporation, all copyrights and related rights to a catalogue comprising over 200 master digital recordings and approximately 3,296 titles (the Music Avenue catalogue). In December 1997, IEG launched a German Music and Media Investment Fund to raise up to DM 30m for projects with the industry.
The fund, which is a tax efficient investment for the investor, gives tax breaks in the first year and a tax free return for up to eight years. It will only invest into tangible assets within the music recording and publishing, film and entertainment industries.
Also in December 1997, IEG announced the acquisition of Media Arts. As a result, Dolphin Studios will become an important player in the field of film and video production and synchronisation. The addition of an AVID audio visual suite and new Pro Tools and Exabyte equipment to its current Neve and G series consoles, gives Dolphin Studios the most up to date, state of the art, equipment available.