Milton Slate Prevails in Private Media Board Election Results

BARCELONA—Preliminary election results for the 2010 annual meeting of Private Media Group shareholders were released Tuesday in an 8K Securities and Exchange Commission (SEC) filing posted to Private’s corporate website. An Independent Inspector of Elections delivered the certified final results of the vote, which took place Nov. 18 in Barcelona, Spain. The tally indicates that the slate of directors put forth by current CEO Berth Milton was successfully voted in by the shareholders.

The results are, as follows:

Nominee                     Shares Voted | Withheld | Abstained  

Eric Johnson                 15,893,296 | 7,507 | n/a   

Jan Jensen                      8,095,390 | 6,256 | n/a   

Bernt Akander                 8,094,351 | 7,295 | n/a   

Peter Dixinger                 8,073,491 | 28,155 | n/a   

Bo Rodebrant                   8,072,525 | 29,121 | n/a   

Berth Milton                     8,071,301 | 30,345 | n/a   

Ilan Bunimovitz                7,799,157 | — | n/a   

David Dohrmann              7,799,157 | — | n/a   

Alexander Matveev          7,509,016 | 290,141 | n/a   

Charles Prast                   7,509,016 | 290,141 | n/a   

John S. Wirt                       7,509,016 | 290,141 | n/a   

The election results will now be reviewed and approved by Judge Elizabeth Gonzalez, the presiding judge in a lawsuit originally filed by Consipio Holding BV, Ilan Bunimovitz and Tisbury Services Inc. against Private Media Group and others in Clark County, Nev., in August 2010. Under an order issued by Gonzalez, the Inspector’s report is subject to modification by the court, and will not be final and effective until it is approved by the court. It is anticipated that Gonzalez will review the report at a hearing in January 2011, following which Private will report the final results following completion of the hearings.

Also at the Nov. 18 meeting, shareholders also voted overwhelmingly to ratify the appointment of BDO Audiberia S.L. as Private’s independent registered public accountants for the fiscal year ending Dec. 31, 2010.

In related news, the 8K filing also reported on another lawsuit brought by Consipio against Private and one of its subsidiaries, Slingsby Enterprises Limited, in May 2010, seeking to enforce a note issued by Private in the amount of $4 million and a related guaranty agreement entered into by Slingsby Enterprises Limited in December 2001.

On Oct. 12, 2010, Slingsby had filed a motion to dismiss the claims based on the position that Consipio’s claims against it are time barred under the statute of limitations. Following a hearing on Nov. 8, the court granted Slingsby’s motion to dismiss the complaint against it on Dec. 13, and granted Consipio time to amend the complaint to plead additional allegations against Slingsby which, if proven, would extend the statute of limitations. Consipio reportedly has 20 days in which to file its amended complaint.

It is expected that Consipio will indeed file an amended complaint and that there will be further motions and filings in both cases by both parties as the struggle for control of Private wages on.