SOURCE: Target Development Group, Inc.

February 25, 2011 09:35 ET

Target Development Group Buys Land and Warehouse for Hannover House Division

SPRINGDALE, AR--(Marketwire - February 25, 2011) - Target Development Group, Inc. (PINKSHEETS: TDGI) has completed a transaction for the purchase of 4.5 acres of land and a warehouse for use by its entertainment division, Hannover House. The property is located in Washington, County Arkansas, and features an existing warehouse with foundational preparations underway for a second building. Hannover House plans to use the property for inventory and element storage of the company's rapidly growing film library, with a long-term plan for a direct-to-consumer fulfillment operation.

Hannover House currently operates out of a leased facility in Springdale, Arkansas, consisting of both administrative offices and warehouse space for order processing. Overstock inventory has been stored in a variety of off-premise, leased locations. The new warehouse will enable a consolidation of merchandise and materials and should save the company significantly each month in storage costs, while building equity and shareholder value.

"We see strategic value in having our operations and order fulfillment facilities located in Northwest Arkansas," said Eric Parkinson, C.E.O. of Hannover House and Target Development Group, Inc. "We are near several key customers, as well as centrally located within the continental U.S. for ease in shipping to either coast. We are looking at expanding the company's physical presence in both New York and Los Angeles for marketing and acquisition advantages, but remain firmly committed to maintaining and expanding our Arkansas-based operational centers."

Hannover House currently owns or controls a growing film library of more than 180 titles, and is in various stages of negotiation to represent the U.S. home video distribution rights to three additional film libraries collectively representing an additional 600 titles. The acquisition of new warehouse space was needed to accommodate the volume of materials, elements and inventory associated with a growing film library.

The real estate acquisition agreement was negotiated by Hannover House President D. Frederick Shefte and the mortgage note holder, details of which will be disclosed in the company's Q1-2011 reports.

For more information on Hannover House and Target Development Group, Inc., contact:
Lauren Sterling, 479-751-4500 / Email:

This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.

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