SOURCE: CMG Holdings, Inc.

March 28, 2011 16:30 ET

CMG Holdings, Inc. Announces That Grass Roots Research and Distribution Releases Positive Research and Analysis Report Targeting Significant Growth for 2011 and Beyond

Report's Target Price Is $0.77 per Share

MIAMI, FL--(Marketwire - March 28, 2011) - CMG Holdings, Inc., (CMG) (OTCQB: CMGO) (OTCBB: CMGO), www.otcmarkets.com, is a full service global marketing Company with commercial rights and digital technologies. The Company, announced today that Grass Roots Research and Distribution, Inc. (www.grassrootsrd.com) has initiated research coverage on the Company targeting a positive outlook for 2011 and beyond.

The Cohen Price Target is calculated using market-based multiple valuation, Discounted Cash Flow (DCF) and by applying the Cohen Price Performance Index approach. Based on an average of these methods, CMGO common stock is valued at $0.77, 450.7% higher than the current market price of $0.14. The stock may be an attractive short-term trade and long-term investment.

The report states: "We expect revenues of $5.2 million for FYE 2010 and more than $81.1 million by 2015 should the Company raise capital to fund its master budget. The Company is also forecasted to efficiently manage operations and command significantly higher operating margins and net profit margins." The report also features detailed information about the Company's global market opportunity, and growth strategy.

The market for Company's products and services represents a multi-billion dollar opportunity. Websites that need to be compliant with the 21st Century Communications and Video Accessibility Act, represent a total market size of $1.8 billion, while overall U.S. retail e-commerce sales totaled $142.0 billion. The event management industry is expected to record revenues of $11.9 billion during FY-2010.

About CMG Holdings, Inc
The Company's focus of operations includes alternative advertising, interactive marketing, sports, entertainment, Internet content publication and distribution technology sectors. For More Information: www.cmgholdingsinc.com and www.creativemanagementgroup.com

The Company, through its acquisition of AudioEye, Inc., owns the rights to a patented technology solution enabling conversion of any media into accessible formats, such as transforming a traditional text based website into a dynamic audio enhanced website.

AudioEye's accessibility feature has received an overwhelming response as it effectively meets criteria and standards of the 21st Century Communication and Video Accessibility Act and the needs of the disabled, physically challenged, learning, hearing or visually impaired, low vision, dyslexic, autistic, elderly, including internet novices and mobile users. For more information visit www.audioeye.com

Through XA, The Experimental Agency, CMGO offers event management services that include marquis hospitality, sponsorships, licensing, production and implementation of events including hospitality services pairing corporate client sponsors and premier events to ensure the highest return on their investment and brand exposure.

In addition, the Company, through its other subsidiaries, provides Talent Management services and Commercial Rights management services. These services, include tie-in with services of AudioEye and XA, provides synergy across the business segments.

To read the report in its entirety, visit: http://www.grassrootsrd.com/grassrootsrd/Reports/CMG_Holdings_03_21_2011.pdf,
http://irprpro.com/?p=330

About Grass Roots Research and Distribution, Inc.:
The Grass Roots Research and Cohen Research brand names are the worldwide Gold Standard for micro cap/small cap research. Grass Roots has raised the art of fundamental securities research by forecasting the three statements, including assumptions of capital raised. Companies are valued in three cases over a 5-year time period: Optimistic Case, Base Case, and Pessimistic Case. Grass Roots distributes in-depth stock market research reports that highlight the company's market opportunity, technology, management, competition and other key differentiators that may affect their short and long term valuation. For more information, visit: www.grassrootsrd.com

Alan Morell, Chairman and CEO of CMG Holdings Inc., stated, "We are pleased with the outcome of the Grass Roots report. It is our goal to increase shareholder value by continuing on our path of exponential growth with fundamental results."

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words 'believes,' 'expects,' 'intends,' 'will,' 'anticipated,' or 'may,' and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. CMG Holdings Inc., Inc. (OTCBB: CMGO) takes no obligation to update or correct forward-looking statements and also takes no obligation to update or correct information prepared by third parties that is not paid for by the Company.

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