SOURCE: Target Development Group Inc.

August 27, 2010 13:59 ET

Phoenix Entertainment Venture With Hannover House on Hold

EL SEGUNDO, CA--(Marketwire - August 27, 2010) -  Hannover House, the entertainment division of Target Development Group, Inc. (PINKSHEETS: TDGI), has informed Anthony Perez and Phoenix Entertainment Group that the proposed asset purchase of titles owned or controlled by Phoenix is on hold pending further due diligence. The letter of intent called for a due diligence period to be completed by September 7, 2010. However, in respect of new information relative to legal matters and proceedings involving Perez, Hannover House has elected to put the venture on indefinite hold until further notice.

"We were surprised and disappointed to learn today of allegations against Mr. Perez," said Fred Shefte, President of Hannover House and Target Development Group, Inc. "We have known and worked with Tony for over six years, and have never had any problems with any transactions or rights issues. In the film and video distribution business, claims against distributors are commonplace as producers often feel that their properties did not perform as well as hoped, and they blame the distributor. However, some of the allegations that came to light today go further, and imply malfeasance in reporting. While Mr. Perez vehemently denies these charges as baseless, Hannover is disappointed that we were not informed in advance, regardless of the merits of the claims," Shefte concluded.

Hannover House is currently investigating various opportunities to acquire more titles and additional film libraries to build the label's presence and revenues. The company currently owns or controls over 175 properties, and is pursuing a variety of acquisition ventures that cumulatively represent more than 600 additional titles. Hannover House sees a major opportunity to generate significant revenues from older catalog titles via recently opened Video On Demand sources, in addition to the company's primary income streams from new release theatrical and home video properties.

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