Hannover House Inc (HHSE)

[Head Clown]

UPTONE RELEASING ("Union Bound") - HHSE has complied with all of the terms of the settlement agreement except a final release of unsold DVD returns (which requires the cooperation of wholesaler, Cinedigm Entertainment).  HHSE has paid Cinedigm for costs and handling fees associated with the release of unsold merchandise, and we anticipate that these DVDs will ship to UPTONE by mid-next week.  Upon receipt of merchandise, the settlement agreement will have been satisfied and proper court filings are required to be completed by Uptone's counsel in order to have this issue fully vacated and closed.