SOURCE: Target Development Group Inc.

January 13, 2011 11:57 ET

Target Recaps Recent Developments for Hannover House Division

NEW YORK, NY--(Marketwire - January 13, 2011) -  In anticipation of the company's annual meeting of shareholders on January 15, Target Development Group, Inc. (PINKSHEETS: TDGI) (Other:, the parent company of entertainment distributor Hannover House, has issued a summary of recently released news and developments.

Theatrically released feature films will drive the revenue engine for Hannover House in 2011 and 2012 under a multimedia business strategy to be presented at the shareholders meeting. Major new acquisitions will see their theatrical activities quickly followed-up with DVD and Blu-Ray releases, an aggressive new Video-On-Demand mandate, and enhanced exposure via cable and other television media. The company has also acquired eight new release books that will be published in both traditional book formats and as e-Books in 2011 through the Hannover House label.

"We have carefully studied all aspects of our business, our industry and the current marketplace for entertainment media," said Eric Parkinson, C.E.O. of Hannover House and Target Development Group, Inc. "Our strategy for 2011 and 2012 involves an acceleration of growth into seven, primary areas of activity. We are excited to present this business plan to our shareholders as we embark on a path to maximize our overall vertical integration, gross revenues and bottom-line results."

Home video and new book releases will continue as the core businesses for Hannover House, but will be enhanced with an aggressive expansion into Video-On-Demand and e-Book formats. The company will also announce eight theatrical titles for 2011, which are expected to generate the majority of Home Video revenues for the company. Approximately twenty-four direct-to-video titles are also expected in 2011. The company is also involved with several high-profile productions, most of which are not expected to be ready for release until 2012.

The Hannover House theatrical release of Joel Schumacher's teen-thriller, "Twelve" in August did not perform well at the box office. However, the consumer momentum from the theatrical release ads and publicity paid big dividends for the title when 20th Century Fox Home Entertainment released it December 28th to the DVD, Blu-Ray and Video-On-Demand markets. Based on industry reports, the wholesale value of the Fox shipments of "Twelve" rank the film as the number four highest volume, new release title for the week, which results have positioned the project for significant profitability to Hannover House. 

"The video results that Fox generated for 'Twelve' validate the business model the company has been pursuing," said Parkinson. "While we hope for better box office results with our new releases this year, it's comforting to have a financial safety net from the video market in the event that a film does not work in theatres. We will continue to refine our theatrical release strategies and budgets to better position our films for financial success in the coming year."

Hannover House has contracted for distribution rights to several, high-profile, theatrical films currently in production or in various stages of pre-production. The strategy in pursuing the licensing or acquisition of titles at an early, pre-buy stage is to provide a greater assurance that the company will have major titles available on a going-forward basis. While Hannover House attends most of the major film festivals to view and consider new films for acquisitions, many of the higher profile titles are already licensed to distributors before Hannover or other studios have the opportunity to bid. Festival acquisitions will continue to be the primary source for new acquisitions in 2011 and 2012, but the production pre-buys will provide the company's guarantee of major titles for the upcoming release slate. In 2011, Hannover House plans to attend multiple film festivals on its new release acquisitions hunt, including Sundance, Cannes, Toronto and the American Film Market.

Recently contracted productions that have previously been announced include: "WILD OATS," a road-buddy comedy starring Shirley MacLaine, Christina Ricci, Maria Bello, John Corbett and Bill Pullman; "DADDY'S LITTLE HERO," a family adventure starring Mickey Rooney; and "DANCES WITH WEREWOLVES," a 3-D format sci-fi thriller scheduled to commence production in March. Hannover House has contracted for three additional titles, details for which have not been released. The company is also negotiating for rights and involvement with four additional titles, including two "franchise-level" ventures.

The company will be revamping its corporate websites in January, and developing a new catalog of items. Additional employees will be needed in 2011 and are being pursued, including accounting and operations staff, as well as sales directors for the television, video and book markets. The company is currently working with Final Cut Films for international licensing, but is exploring a variety of opportunities to modify the manner that its international film rights are sold. The company has been operating on a cash-flow basis, with supplemental assistance from vendor lines-of-credit and creative deal-making.

The Shareholders Meeting for Target Development Group, Inc. will be held on Saturday, Jan. 15, 2011 from 10:00 am until 1:00 pm at the Inn at Carnall Hall, on the campus of the University of Arkansas in Fayetteville, AR. The meeting will be streamed live, on-line with interactive Q&A made possible via email for shareholders not in attendance. New release materials and documents presented at the meeting will also be available on-line to shareholders through a password-accessed link on the Hannover House website.

For more information on Target Development Group, Inc. and Hannover House, contact D. Frederick Shefte or Eric Parkinson at 479-751-4500, email: or


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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