August 09, 1999 - Private Media Group Inc. (Nasdaq: PRVT), a leader in high-class adult entertainment products and services since 1965 and the first such company trading on the National Nasdaq Market, today announced that it has entered into a joint venture agreement with another giant in the adult industry, General Media Communications International ("Penthouse"), for the production, distribution and promotion of top quality 'soft' and 'hard' adult films.
The Agreement calls for Private and Penthouse to work together to launch a new video and DVD adult line which will be created and produced by Private Media Group. Private will produce the films in two different versions, both 'hard' and 'soft', to suit the markets where the films will be distributed. The films will be shot with multi-angle cameras, enabling the release of each title in 'non-broadcast' formats such as VHS and DVD, and utilizing digital technology suitable for 'broadcast media' such as cable television. Private will own the copyrights to all the films, subject to certain licenses granted to Penthouse. The films will be distributed worldwide by both Private and Penthouse through their respective distribution networks, with Private having exclusive rights to distribute the 'hard' versions in all formats throughout the world, together with the exclusive rights to distribute the 'soft' versions in all formats in the United Kingdom. Penthouse will handle worldwide distribution of the 'soft' versions, with the exception of the United Kingdom. Private and Penthouse will share total net revenue equally from each production.
Included in the unique pact, is a Mail Order provision that conforms to the 'hard' and 'soft' distribution rights as defined, and which will insure that the new product range will be in a position to maximize sales revenues through traditional outlets as well as the Internet. In addition, the Agreement provides for promotion of the new titles on each company's websites, among the largest and most reputable in the adult industry, and incorporates extensive publicity for such releases through both the Private and Penthouse magazine titles.
Both founded in 1965, General Media Communications International and Private Media Group Inc. have established themselves as the leaders in quite different and distinctive segments of the adult sector. Both companies have also considerably expanded their respective businesses beyond their original flagship publications.
The winner of numerous awards for outstanding journalism since its inception, Penthouse is one of the most recognizable commercial brand names on the US market over the past 30 years - on a par even with Coca Cola and McDonalds. Penthouse is published in 18 foreign editions distributed in 22 countries and remains the Company's best-selling magazine on newsstands. Founded in London, England, Penthouse was launched in the United States in 1969 by the man still the helm, Bob Guccione.
Prioritizing its market activities in the US in recent times, Private Media Group has established a reputation for high-class, high-quality adult entertainment that sets it apart from inferior competitors. Headquartered in Barcelona, Spain, Private has diversified aggressively in recent years. Websites, magazines, DVDs, video and film productions, a Private Circle fashion line, CD-Roms, adult pleasure products, nutritional supplements, energy drinks and personal care products are all part of its portfolio and available in over 35 countries. Guiding Private Media Group Inc. with youthful zest and business acumen is CEO, Berth Milton.
Mr. Milton said: "This is a unique agreement in the history of adult entertainment. From Private Media Group Inc.'s perspective, it is an invaluable opportunity to heighten the Company's worldwide profile still further, but particularly in the US market, and allows us to add to our productions base while increasing sales revenues. It is, quite simply, an incredible opportunity for potential investors in our publicly-quoted company to seize the initiative with a rapidly expanding company which already has a broad product portfolio and a vibrant Internet presence."
For General Media Communications International, Bob Guccione added: "Private is the ideal partner for continuing our global expansion into the home video and broadcast markets worldwide. As both companies have already established brand-name awareness for provocative quality programming, this dynamic alliance promises to become the pre-eminent force in the adult marketplace. We are anticipating this to be one of many exciting co-ventures together."
This release contains, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1934, as amended, which reflect the Company's current judgements of those issues. However, because those statements are forward-looking and apply to future events, they are subject to such risks and uncertainties, which could lead to results materially different than anticipated by the Company.
For more information, visit the Company's corporate website at www.prvt.com.
--- The above is a Press Release, in depth coverage to follow.
