SOURCE: Target Development Group, Inc.

August 27, 2010 07:45 ET

Hannover House on Target to Acquire Phoenix Entertainment

Companies Execute Letter of Intent to Combine Libraries and Video Sales Activities

EL SEGUNDO, CA--(Marketwire - August 27, 2010) -  Hannover House, the entertainment division of Target Development Group, Inc. (PINKSHEETS: TDGI), has entered into a letter of intent to acquire the assets of Phoenix Entertainment Group, a California-based distributor of videos and video-on-demand products. Phoenix Entertainment President, Anthony Perez, will join Hannover House in the capacity of Senior Vice President of Domestic Sales, and will work out of the company's new West Coast offices in El Segundo, CA.

The existing library of film and video titles from Phoenix Entertainment consists of over forty feature films, primarily in the genres of Latino, urban and horror. An additional twenty Asian-origin titles are expected to be added to the venture following closure of the Phoenix acquisition, and will feature martial arts and anime releases.

"We're very excited to be adding such a diverse mix of product to our existing library of films," said Hannover House President D. Frederick Shefte. "Hannover House had previously assisted Phoenix with the placement of some of their titles into WalMart, but this will be the first opportunity for Phoenix to place our titles into their large network of wholesale, retail and VOD accounts. Our product lines are complementary, not competitive, and this new venture will give us a much needed office and West Coast sales presence," Shefte concluded.

"Hannover House is one of the most dynamic independent studios in the market today," said Perez. "The momentum from their high-profile releases has enhanced their corporate credibility in the industry, and we think our Phoenix titles are a perfect fit. I'm pleased to be formalizing a working relationship with Eric Parkinson, Fred Shefte and the Hannover House team, and am confident that our fourth quarter sales promotion will be a success."

With the addition of the Phoenix titles, the Hannover House library will expand to over 250 titles, inclusive of the prior acquisitions of the Elite Entertainment and FocusFilms libraries. The letter of intent between Hannover House and Phoenix allows for a due diligence period, with a planned closing of the venture on Tuesday, September 7.

Contact Information