SOURCE: RMD Entertainment Group

February 28, 2007 14:11 ET

RMD Entertainment Group's Giorgio Costonis Victorious in Takeover

PHILADELPHIA, PA -- (MARKET WIRE) -- February 28, 2007 -- RMD Entertainment Group (PINKSHEETS: RMDN) ratified today that after a series of aggressive reorganizational transactions (the "Agreements") involving parties; RMD Entertainment Group, RHNMedia (PINKSHEETS: RHNA), Mechanismo (USA) Corp (Nevada) and an undisclosed private equity group, Giorgio Costonis is ratified as President & CEO of RHNMedia whilst Mr. Costonis remains President of RMD Entertainment Group. The private equity group of investors nominated and the Company accepted Gary Freeman to join the board of RHNA. Gary Freeman is also ratified as Financial Controller for both Companies.

Atonn F. Muhammad (a/k/a Anton Muhammad), Kendrick & Jacqueline Lesane no longer serve as officers or directors of the Company or any of its subsidiaries. Mr. Muhammad has not been released or fully indemnified by the Board. The Company hereby strongly urges further bona-fide claims or creditors of the subsidiaries to contact Mr. Costonis immediately.

Furthermore, during the reorganization process the authorized share capital of RHNmedia (Nevada) was lowered from its previous 2 billion shares to 200 million. RHNMedia has ratified its divestment of 90% of its subsidiary "Real Hip Hop Network Holding Corp" (Maryland D10671444) and 100% of its subsidiary "SSM Media Group (Maryland D07744865)" to Mechanismo Corp in favor of the below mentioned US content licensing agreement. The RHNA subsidiary "Real Hip Hop Network Digital Inc" (Nevada E0759152006-3) has been permanently dissolved.

The Reorganization clawed back 3,577,538 RHNA "C" Class shares and 22,500,000 common shares held by previous officers and directors.

The Reorganization also successfully clawed back approximately 8,000,000 shares of free trading RHNA which have been held frozen in a brokerage account since Feb. 2nd, 2007. 6.7m of the 8m has been returned to certificate form awaiting further cancellation.

In a Universal Licensing Agreement (the "Agreement") between the Parties, Mechanismo Corp (the "Licensor"), the entity that now owns and controls all of the subsidiaries assets and liabilities, has licensed the content back to both RHNA and RMDN (the "Licensees") for 'USA distribution only' in individual revenue sharing agreements.

Mechanismo (USA) Corp is negotiating with parties to further monetize the universal content to international media aggregators and media intermediaries as well as seeking broadcasting opportunities in Cable, Satellite and Accommodation private labeling TV systems.

Giorgio Costonis, President and CEO of RHNA and RMDN, stated: "Today is a day of historical significance. The first hostile take over in Hip Hop history. Hip Hop is an industry that produces billions of dollars every year -- therefore the stakes are high. It's unfortunate what happened here but don't get it twisted, we are in it to win it. This is an 'all in' bet."

About RHNMedia

RHNmedia is the first cable network dedicated exclusively to Hip Hop lifestyle and culture. RHN.TV has a regular programming schedule devoted almost entirely to the Hip Hop marketplace with a targeted selection of programming centered on the foundation of Hip Hop's core elements: Deejaying, Emceeing, Break dancing and Graffiti. Target Audience: 18-34 demographic, in both urban and suburban markets. Certain programming is targeted towards the 12-24 audience Enjoy our web presence --,[TSC].pdf

About RMD Entertainment Group

RMD Entertainment (RMD) is a cutting-edge entertainment company that is primarily focused on the development and international marketing of hip-hop music, including compact discs, digital downloads, and personal ring tones for mobile phone customers, as well as other hip-hop lifestyle products. The Company has also created MOTV, the ability to stream video content to mobile devices, including cell phones and PDAs. The Company currently possesses an impressive hip-hop catalogue, which it distributes exclusively through Bungalo Records and Universal Music Group (a subsidiary of Vivendi Universal in North America and in Europe through the Pickwick Group Ltd. of London).

Forward-looking statements in this news release relating to the Companies' expectations regarding demand and pricing are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used herein, words such as "expect" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions made by and information available to the Companies. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, without limitation, the future demand for, and sales volumes of, the Company's products, future production volumes, efficiencies and operating cots, increases or decreases in the prices of the Company's products, the Company's future stability and growth prospects, the Company's future profitability and capital needs, including capital expenditures, and the outlook for and other future developments in the Company's affairs or in the industries in which the Company participates and factors detailed from time to time in the Company's periodic reports filed with the United States Securities and Exchange Commission, and other regulatory authorities. The Company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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