SOURCE: DM Products, Inc.

March 08, 2010 07:00 ET

Management Discusses Results of Financial Audits, S-1 Filing and Current Condition of the Company

WALNUT CREEK, CA--(Marketwire - March 8, 2010) -  DM Products, Inc. (PINKSHEETS: DMPD) (www.dmproducts.biz) has recently released the results of financial audits conducted for years ended December 31, 2007, December 31, 2008 and the first nine months ended September 30, 2009.

President and Chairman of the Board of Directors, Kurtis Cockrum, provides the following summary of the current overall condition of the company:

"As stated in previous press releases, we are in the process of compiling an S-1 document for submittal to the SEC, which we hope will be submitted by the end of March. We then intend to apply for Bulletin Board status, a move which Management has been anxiously awaiting. Although we are unaware of the exact time frame in which the SEC will respond to our filing, we feel as though we have satisfied our internal goals with regards to the completion and submission of the audited statements and Form S-1. By becoming a fully reporting company, we hope to instill confidence in our existing shareholders as well as the general public. 

"As shown in the Consolidated Statements of Operations, our company is healthy and growing. Total revenue for the first three quarters of 2009 exceeded the entire revenues derived throughout the entire year of 2008 ($278,851 v. $220,261). This amounts to an increase of 27% in just the first three quarters of 2009. We anticipate having the final revenue totals for 2009 by mid-April. What management believes is of significance regarding these figures, is the fact that these revenues were the result of royalty payments; therefore, our gross profits during these periods were not reduced as the result of cost of sales. Assuming we had manufactured and marketed our product directly and assumed the cost of sales associated therewith, we would have had to have received total revenues of $2,788,510 (assuming a profit margin of 10%) to obtain the gross profit shown for the first three quarters of 2009. 

"What also stands out to management is the lack of any long term debt or need to have raised additional capital through the sale of our common stock. Although we do not rule out the option to acquire capital through future debt or equity transactions, should an opportunity arise justifying such an action, to date, we are essentially debt free and have not diluted our existing shareholders' ownership in the company since becoming publicly trading. We continue to feel confident in the royalty stream we shall receive in connection with the Banjo Minnow Fishing Lure sales and believe this income will be substantial enough to move us upward and forward as a company for future growth. 

"Unlike many companies currently trading on Pink Sheets, our management team consists of individuals who have personally invested substantial funds into DM Products, or its subsidiary Direct Success, Inc. This brings a sense of pride and a personal commitment to utilize all my efforts in seeing the company thrive. Management will continually strive to obtain the best results for our shareholders.

"Although we are continuously approached by new inventors and new product ideas for direct marketing, we have not ruled out diversifying our business into other areas which are outside of the traditional infomercial arena. During the past year, management has investigated several such opportunities. Although the right business plan has yet to surface, it is quite possible that one will, at which time management will fully assess the matter in the best interest of the company.

"We openly welcome shareholder input. The most effective means of reaching management and receiving a prompt response is via our website dmproducts@dmproducts.biz."

Kurtis Cockrum, President and Chairman of the Board of Directors of DM Products, Inc.

DM Products, through its wholly owned subsidiary, Direct Success, Inc., develops, finances, produces, markets, and distributes unique and innovative health, beauty, fashion, fitness and other products for sale through infomercial marketing and distribution channels.

This press release includes certain statements that fall within the definition of "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties, overall economic and market conditions, competitors' and clients' actions, and weather conditions, which could cause actual results to differ materially from those anticipated. Accordingly, such statements should be considered in light of these risks. Any prediction by DM Products is only a statement of management's belief at the time the prediction is made. There can be no assurance that any prediction, once made, will continue thereafter to reflect management's belief, and DM Products does not undertake to update publicly its predictions, whether as a result of new information, future events or otherwise.

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