SOURCE: Public Media Works

March 24, 2010 15:31 ET

Public Media Works Enters Into Share Exchange Agreement to Acquire EntertainmentXpress

Company Accelerates Plan to Acquire Innovative Kiosk Based Content Delivery Business

LOS ANGELES, CA--(Marketwire - March 24, 2010) - Public Media Works, Inc. (OTCBB: PUBM) announced today that it has entered into a share exchange agreement with EntertainmentXpress pursuant to which Public Media Works would acquire and operate EntertainmentXpress as a subsidiary operation. Under the terms of the share exchange agreement Public Media Works will acquire at least 90% of EntertainmentXpress' outstanding stock in exchange for up to 18,500,000 shares of restricted common stock of Public Media Works. The share exchange agreement results from the previously announced letter of intent to acquire EntertainmentXpress.

"We are pleased to announce the acceleration of our acquisition of EntertainmentXpress through the execution of this share exchange agreement," stated Joseph Merhi, Public Media Works CEO. "This is an important milestone in the process, taking us one step closer to making EntertainmentXpress an integral part of our business plan."

"Combining our kiosk based content and advertising delivery platform with access to the entertainment industry creates some very interesting dynamics all of which are important to our strategic positioning in the marketplace," commented EntertainmentXpress CEO, Garrett Cecchini. "In addition, Public Media Works provides us with access to the public capital markets, which we believe will play an important role in financing our growth plans."

The parties anticipate the closing of the share exchange will occur on or before April 16, 2010. Additional information regarding the acquisition and closing conditions, and a copy of the share exchange agreement, can be found in the company's Form 8-K filed with the U.S. Securities and Exchange Commission on March 24, 2010.

ABOUT PUBLIC MEDIA WORKS

Public Media Works, Inc. is engaged in the development, production, marketing and distribution of film, music and television entertainment media. The company is developing a network of production resources and also seeks out raw content in the form of film concepts, trailers, scripts, treatments, music and book proposals to acquire or license for further development and distribution.

For more information visit the company web site at www.publicmediaworks.com

ABOUT ENTERTAINMENTXPRESS

EntertainmentXpress, Inc., is rolling out a network of conveniently located, self-service, kiosks which deliver demographically relevant digital media content to consumers. The company's core business model comprises the rental and sale of DVD movies, video games and more through kiosks located in quick-serve food locations, grocery stores and other high-traffic, public venues. Features intended to differentiate EntertainmentXpress in the marketplace include more digital product offerings in future phases, retail partner branded kiosks, a fully integrated solution for in-store advertising and kiosks pre-designed to become media filling stations to a variety of digital storage devices. The company's forward thinking media acquisition and cross promotion strategies are designed to deliver a better value proposition for consumers and increase appeal to retail and distribution partners. According to The NPD Group, a leading market research company, DVD and video game rental kiosks are experiencing more growth than either subscription services or store rentals and video rental kiosks will make up nearly 30 percent of video rentals in the U.S. in 2010. EntertainmentXpress' focus is on becoming a significant participant in this rapid expansion.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Such forward looking statements, particularly as related to completion of the acquisition of EntertainmentXpress by Public Media Works, the business plans of Public Media Works and EntertainmentXpress, expectations of strategic relationships, business opportunities related to content sourcing and the DVD and video game rental kiosks business, the ability of EntertainmentXpress to enter into agreements with distribution partners, to gain market share, the size of the market, and the ability of EntertainmentXpress to compete effectively in the marketplace, and the future opportunities of the Company, are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the Company's expectations and estimates.

Contact Information

  • For More Information: Go to www.publicmediaworks.com

    Company Contact: (310) 358-3213

    Investor Relations Contact: Mark Bernhard (415) 332-7200 x222