Hannover House Inc (HHSE)

[woodboaero]

NEWS: Hannover House Targets Growth, Diverse Activities in 2012

http://www.prnewswire.com/news-releases/hannover-house-targets-growth-diverse-activities-in-2012-135317993.html

LOS ANGELES, Dec. 9, 2011 /PRNewswire/ -- Hannover House, the operating division of Target Development Group, Inc., (Pink Sheets: TDGI), will present the details of a growth and income diversity plan to begin in 2012 at the company's annual Shareholder's Meeting in January, it was announced today. An acceleration of the company's theatrical and home video release activities will be funded through an off-balance-sheet private fund, and the company is looking at opportunities for retail distribution through existing customers of non-entertainment products.

The annual Shareholder's Meeting of Target Development Group, Inc. and Hannover House is scheduled for Saturday, January 14, 2012 in Fayetteville, Arkansas. The event will be streamed live over the internet for viewing and questions from shareholders not present. The agenda for the Shareholder's Meeting includes a recap of activities for calendar year, 2011, which the company has described as "profitable and productive," as well as a growth plan for 2012 and subsequent years which the company feels could significantly increase revenues and profits.

"Our position in the U.S. marketplace as a recognized independent film distributor is now well established," said Eric Parkinson, C.E.O. of Target and Hannover House. "To maximize our growth, profitability and shareholder value, we are looking at new financing opportunities that will enable the company to expand on our successes with entertainment products as well as the pursuit of complementary new ventures."

The company will discuss the structure of a $5-million dollar, revolving fund, to be accessed for the acquisition and release of theatrical films and home video properties. The off-balance-sheet structure will enable Hannover House to compete for major titles and pay for their release without incurring corporate debt or requiring equity dilution. With licensing advances to producers dropping rapidly, even for high profile titles, the company believes that the majority of this fund will be available for releasing costs. Hannover House will also be pursuing several film libraries that are expected to be licensed directly, and not through the off-balance-sheet fund. These film libraries will enable the company to significantly increase the output of catalog home video releases and video-on-demand offerings.

"We're now being offered major feature titles for acquisition," said Parkinson. "Most of the licensors are no longer requesting significant advances, but are instead requiring theatrical releasing commitments that often exceed our ability to finance internally from our cash flow and existing, vendor credit lines. The establishment of an off-balance-sheet fund will provide us with access to capital to pursue these higher-profile titles, and to grow the company's revenues while preserving existing resources."

Another revenue opportunity to be discussed is the pursuit of retail distribution of non-entertainment products. Hannover House has direct or wholesale-direct relationships with almost every major retail chain in America. The company is already selling video products, audio products and books. Parkinson believes there is an opportunity to expand into other retail categories, including Toys and merchandising items that could be tied-into the company's March, 2012 theatrical release of "Toys in the Attic," as an example.

A formal meeting Shareholder's Meeting notice and agenda will be posted by December 15, in compliance with the corporate guideline of a 30-days notice.

For More Information Contact:

Lauren Sterling, HANNOVER HOUSE, 479-751-4500 / [e-mail]

SAFE HARBOR STATEMENT

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.