1). MEDALLION - As previously announced, Hannover's new releasing entity, "MEDALLION INTERNATIONAL PICTURES" was launched at Cannes to robust success. As originally planned and launched, Medallion has been envisioned as the releasing mechanism (and financing vehicle) for the Company's higher-end productions. That is already happening. What we are supplementing now is the addition of outside studio labels to the Hannover House family for our existing North American business. This structural model - similar to the $150-mm level that Tom Sims achieved at Universal-Vivendi - is to combine four or more "complementary" (but not directly "competitive" releasing labels together for HHSE to represent. Three established labels (plus one "start up" have already pledged to join this new multi-studio effort. The sales entity will be known as MEDALLION RELEASING, INC., which is a 100% wholly-owned division of Hannover House, Inc., HHSE.