SOURCE: Innovation Holdings Inc.

October 16, 2006 09:45 ET

Innovation Holdings Inc. Adopts New Business Plan

TORONTO -- (MARKET WIRE) -- October 16, 2006 -- The Board of Directors of Innovation Holdings Inc. (PINKSHEETS: IVHN), a Nevada Corporation, announced the adoption of a new and innovative corporate business plan.

The revised business plan focuses on less capital intensive, service-based client/partnerships with smaller corporations that have significant growth potential and that require marketing, management and fund raising services in order to achieve that growth. The services provided include, but are not limited to: marketing consulting, management consulting, capital acquisition services, web site development, sales consulting, negotiating services, and partnership development.

The client corporations will pay Innovation Holdings Inc. a fixed percentage of their net sales for a minimum period of three years in exchange for these services. Fees will range from 5% to 12.5% of net sales depending on the nature of the consultancy and the range of services provided.

Approximately 70% of the net sales revenue stream generated by Innovation's client corporations will be paid directly to the common shareholders of the public corporation through a trust set up to facilitate the dividend distributions. The balance of the net sales revenue stream will be paid into the Company to cover overheads, taxes and all other business costs.

The fact that the fees earned under the auspices of the Company's revised business plan are based on the net sales rather than a percentage of the net profit of the company is significant in two ways. First, this methodology will likely generate a more significant revenue stream than traditional venture capital relationships achieve. Second, the revenue stream will start to flow much faster that it would with a traditional venture capital relationship because revenue will flow to the Company as soon s there is any sales activity and regardless of the profitability of the client/partner's corporation.

The Board of Directors has stated that the new business plan is the first significant step in the much anticipated restructuring of Innovation Holdings Inc. and paves the way for the effective execution of its innovative business strategy. The changes outlined in the business plan will provide Innovation Holdings Inc. shareholders with greater share value through the adoption of the guaranteed dividend distribution.

For more information please contact Rhonda Windsor at 905-898-2646 or email

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Innovation Holdings Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; and (iii) competitive factors and developments beyond the Company's control.

Contact Information