Hannover House Inc (HHSE)

[Cpoulsen2]

Item 3. Legal Proceedings.

As Plaintiff, the Company has engaged the services of attorney George B. Morton, Esq., to file a lawsuit for damages against a
known individual and his accomplices who have been aggressively attacking the Company’s stock, reputation and management
with knowingly false and malicious statements and acts of interference (including a sabotage of the Company’s relationship with
a previously designated auditing firm and direct interference with several programming supplier partners). Details of this
lawsuit, which is expected to be filed during April, 2015 – and which is expected to seek several million dollars in damages on or
more on behalf of the Company, officers and shareholders – will be disclosed in a separate Form 8 information statement filing.
The Company is also cooperating and supporting a current investigation by the F.B.I. into the matter of these same traders