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Discussion Item a). INTERNATIONAL SALES VENTURE – A discussion was held   regarding the various opportunities for the Company to promote and exploit the sales and licensing of Company owned entertainment assets to territories and media outside of North America. Previous sales agency ventures with outside service providers have not been deemed satisfactory for the Company, based on a variety of factors (priority, stature, incentive structures and title specific issues). Accordingly, it was determined that Hannover House should consider either the formation of an in-house (internal) sales division to handle these opportunities, or that the Company should consider the purchase / acquisition of an existing international sales company that would complement the overall business model. There being no specific motions for Board vote or action, the matter was deferred until later in March.

Discussion Item b). APPROVAL OF MULTIPACK DVD ASSORTMENTS – A sales analysis of Q4 DVD depletions from WalMart and Best Buy indicates a growing consumer trend in support of purchases of thematic multipack DVD assortments in the $5 Budget Bins. Accordingly, and in respect of the significant number of titles in the Hannover House DVD catalog, the Board voted unanimously to approve the plan to assemble and release nine (9) or more, thematic multipacks for the Budget Bin market. A summary of the programs already in the works (or contemplated for release) has been attached as Exhibit “A”. Current sales trends for comparable competitive multipacks suggest the potential of generating up to $1-million to $1.5-mm in gross sales per pack, which would represent an increase in title sales expectations by a factor of 7-to-1 over the current Library Valuations for these catalog titles. Fred Shefte and Tim Ellis will be responsible for assembling the masters and art elements required for these multipack   offerings, and Shefte will negotiate for bulk DVD replication discounts with the Company’s primary DVD manufacturing suppliers.

Discussion of Item c). APPROVAL OF DOCUMENTARY CHANNEL BROADCAST
AND “SPECIAL DVD RELEASE WINDOW” IN SUPPORT OF “PINK SKIES”
ACQUISITION – The Board approved a slate of cable television broadcasts for “PINK SKIES,” beginning March 3, 2012. This acquisition had not previously been announced, as the Company had planned to release the title in late summer to better correspond to key promotional opportunities (e.g., “Ellen Degeneres Show” and thematic events in support of Breast Cancer Awareness). In respect of the on-air profile and promotions that the Documentary Channel has offered, the Board approved a “special release window exclusivity” for the Documentary Channel to offer DVDs of “PINK SKIES” immediately, with the mainstream retail release of the DVDs to be held until summer as originally planned. Shareholders interested in learning more about “PINK SKIES” can visit the film’s official website, www.PinkSkiesTheMovie.com

Discussion of Item d). APPROVAL OF SALES VENTURE WITH “FREESTYLE
RELEASING” FOR SELECTED VIDEO-ON-DEMAND ACCOUNTS – In respect of the level of licensing fees available through “Output” agreements in place between FreeStyle Releasing and some selected, key outlets for Video-On-Demand streaming, the Board approved the execution of the sales agency agreements covering, “All’s Faire In Love” and “Cook County.” The Board also approved an agreement for FreeStyle to pursue VOD and Television sales of the film, “TWELVE,” but with the additional condition of a direct assignment of revenues to benefit the retirement of the Gaumont licensing fee for that item. The agreement with FreeStyle Releasing is non-exclusive for these items, and enables the Company to continue with the exploitation and pursuit of other VOD and Television licenses, through existing or new agreements and distribution channels.