SOURCE: RMD Entertainment Group

December 19, 2007 15:09 ET

RMD Entertainment Group Adopts Digital Music Format Exclusively as Music Industry Changes

Company Is Poised to Reduce Cost of Sales Significantly by Selling Music Content Exclusively Through 75 Digital Distributors and Ringtones Through Mobile Carriers

PHILADELPHIA, PA--(Marketwire - December 19, 2007) - RMD Entertainment Group, Inc. (PINKSHEETS: RMDM), a Music and Entertainment Company focused on the development and marketing of "Urban Media Content" worldwide, today announced a significant change in corporate strategy in bringing its music content to the consumers, adopting a digital-only sales approach which effectively dropped traditional compact discs from its product line.

The decision was made in the wake of Music Giant Warner Bros. Music reporting a huge fourth quarter loss of over 60% in earnings 2 weeks ago as well as a recent report that indicated digital download sales are up 1000% over the last 24 months and a recent projection of $4 billion US for ringtone sales worldwide by the end of 2007.

"We saw the change in the industry coming over two years ago. That's why we were so diligent in positioning our company with as many digital distributors (75 to date) as we could across the globe," says Giorgio C Costonis, CEO of RMDM. "Kids and adults alike enjoy the convenience of shopping for music online and being able to play music in digital formats that can easily transfer between their music to personal music players and their automobiles and mobile phones. One of the most cost-prohibitive factors in the music industry for us as a company was the manufacturing of compact discs and the additional placement cost associated with our product being in stores. With the cd sales being down so much, retail outlets became more and more reluctant to place new product on shelves and take a risk on taking in new product. Over 40% of our cost of sales was associated with production and placement of compact discs to retail. By dropping this format altogether, we can apply those dollars to marketing of downloads and ringtones and have confidence that our consumers can purchase our product worldwide through a vast array of online retailers and directly through their mobile phones. Digital distribution has made such a significant impact on the industry that companies like iTunes are now the major players in the industry, replacing the big three (Sony, Warner, Universal) in that position. We feel confident RMDM is poised to compete effectively in digital content commerce on a global level as a result of the additional cash flow we have available to us as the end product of our decision today. RMD will continue to bring quality content to our target demographic going forward while increasing the awareness of our products with aggressive internet, cable, and mobile marketing programs. Our goal is to become the premier digital label in Hip Hop. Today we made a key decision in this regard and feel like we took a significant step forward to achieving that goal for the company and all of its shareholders."

About RMD Entertainment Group

RMD Entertainment Group is a cutting-edge Entertainment Company and Record Label. The Company is primarily focused on the development and international marketing of "Urban Media Content" or more commonly known as Hip-Hop music worldwide that includes digital downloads and personal "Ringtones" for mobile phone customers. RMD currently has a promotional partnership with MOTV, that allows RMD to promote its music content through high traffic areas of multimedia broadcasts of video content on cable, internet, and mobile arenas. The Company currently possesses an impressive Hip-Hop catalogue that is distributed through 75 digital distributors worldwide and directly through mobile carriers.

Based out of Florida with satellite offices in New Jersey and Delaware, RMD Entertainment has formed one of the most extensive distribution channels around the world for Hip-Hop lifestyle products and is the next step in the evolution of Urban Media Content. RMD elevates Hip-Hop music to a higher standard of excellence in economic performance and moral ethics in the music industry.

For further information on RMD Entertainment Group, visit the Company's Web site:

Safe Harbor

Forward-looking statements made in this release are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made by RMD Entertainment Group, Inc. are not a guarantee of future performance. This news release includes forward-looking statements, including with respect to the future level of business for the parties. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors that could cause results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties and events that may be beyond the control of RMD Entertainment Group, Inc. and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition.

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