Knightscove Media Corp.
TSX VENTURE : KC.A
TSX VENTURE : KC.B

Knightscove Media Corp.

November 17, 2009 15:00 ET

Knightscove's Morningstar Entertainment Blu-Ray and Seasonal Titles and US Launch Restore Sales to Pre-Economic Downturn Levels

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2009) - KNIGHTSCOVE MEDIA CORP. ("Company") (TSX VENTURE:KC.A)(TSX VENTURE:KC.B), is pleased to announce that it's DVD subsidiary, MORNINGSTAR ENTERTAINMENT ("Morningstar", www.morningstarent.com), is seeing stronger sales consistent with 2007 levels. Over the past two years, as a significant result of the economic environment, home products such as DVDs have been affected, reducing gross and net sales to the Company by approximately 30% per annum.

Starting in February of 2009, the Company commenced a group of cost cutting measures which will save approximately $500K in expenses in its 2009 - 2010 fiscal year. At the same time, the Company began putting in place its ability to fully service the US marketplace.

In September the Company launched its first Blu-Ray title, the original "A Christmas Carol" starring Alistair Sim. Currently, this title is selling extremely well with sales in excess of $300K. With reorders commencing, it has already generated sales in Canada of more than 10% of the Company's total sales for 2009. Morningstar's second Blu-Ray release "Lost City Raiders" is due to hit stores January 5th 2010 and has strong pre-orders, providing the Company with it's largest ever order from Blockbuster. Sales through the first ten weeks of Q1 (fiscal) are approximately 50% of the 2009 annual sales.

"We are very pleased with both the progress and the rapid turn around which we are seeing", said Leif Bristow, President. "We have made appropriate revisions to our G&A which we believe will benefit the company's profits on sales in the future and the strategy of opening US markets, strategic Finished Goods lines such as Questar and our Blu-Ray strategy, coupled with stronger customer confidence will help us strengthen shareholder values."

Additional information regarding the business of Knightscove may be found on www.knightscove.com or SEDAR at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Knightscove Media Corp.
    Leif Bristow
    President
    (416) 444-7900 ext 222