FRV Média Inc.
TSX VENTURE : FRV

FRV Média Inc.

April 02, 2007 09:58 ET

FRV Media Continues Restructuring and Announces Sale of Certain Assets

MONTREAL, QUEBEC--(CCNMatthews - April 2, 2007) - The Board of Directors of FRV MEDIA ("FRV" or the "Company") (TSX VENTURE:FRV) is continuing the restructuring announced last February and to this end has approved the sale of some of the Company's assets.

FRV RESTRUCTURES ITS PRODUCTION SUBSIDIARIES AND GRANTS OPTIONS

As announced in the press release of February 22, production subsidiary Altau Tuttifrutti was integrated into Cite-Amerique effective April 1, 2007. Lorraine Richard has taken the helm of Cite-Amerique, which will focus on developing the documentary aspect of the business while Orlando Arriagada has become its vice-president and producer. When TuttiFrutti was acquired, one million shares were issued to Mr. Arriagada subject to certain performance milestones. This number has been reduced to 400,000 shares, which are also subject to certain performance milestones over the next two fiscal years, ending March 31, 2008 and March 31, 2009. The 600,000 previously issued shares will be cancelled and returned to treasury. Moreover, under the terms of the Company's stock option plan, Mr. Arriagada was granted options entitling him to acquire up to 150,000 Class A shares at a strike price of $0.25 per share. These options will expire on March 26, 2012.

FRV SELLS ITS EVENT RECORDING AND DUBBING ASSETS

As part of the restructuring underway, FRV has decided to withdraw from this line of business given the marginal benefits for the Company. On March 31, Double Altau, a company owned outright by FRV director Jean Langevin, acquired the dubbing assets (editing equipment) and event recording assets (filming equipment) for $48,000, of which $36,000 was paid upon closing and the balance of which is payable quarterly until June 30, 2008. Over and above the base payments, Double Altau will pay FRV Media a percentage of gross sales for the next three years until March 31, 2010. Since Mr. Langevin is a member of FRV's Board and management, the transaction was submitted to the Board of Directors for approval at its March 27 meeting. The Board struck an independent committee to ascertain, among other things, the value of the transaction. Following the committee's recommendation that the transaction be approved, the Board vetted the deal, which then obtained the required disinterested shareholder approval. Mr. Langevin stepped down as FRV's vice-president on March 31.

FRV GRANTS STOCK OPTIONS TO PIERRE PHARAND

At its meeting of February 21, the Board of Directors appointed Pierre Pharand as a director of FRV. In accordance with the Company's stock option plan, Mr. Pharand was granted options entitling him to acquire up to 5,000 Class A shares at a strike price of $0.14 per share, i.e., the closing price on the grant date. The options expire on March 26, 2012.

ADDITIONAL INFORMATION

FRV's complete management report for the quarter ended December 31, 2006 can be found on SEDAR at www.sedar.com. The Company regularly discloses complementary information by press release and quarterly financial statements. This information is also available on SEDAR.

ABOUT FRV MEDIA

FRV Media is a producer, exporter and integrator of quality content deployed across multiple platforms: television, cinema and multimedia. Through its wholly-owned subsidiaries Cite-Amerique, Altau TuttiFrutti (integrated into Cite-Amerique on April 1, 2007) and Delphis Films, the Company creates, distributes and exploits dramatic content (TV series, made-for-TV movies and feature films), youth and children's programs, documentaries, sitcoms and magazine shows.

Note: The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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