Diamond Entertainment (fka DMON)

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Last filling 10qsb Feb 22, 2007 under
Acquisition or Disposition of Assets

On November 30, 2006, DMEC signed a letter of intent to acquire Rx for Africa, Inc., and all its wholly owned subsidiaries. The acquisition will be made by the DMEC through its new wholly owned subsidiary, DMEC Acquisition Inc. As part of the letter of intent, DMEC received a bridge loan (discussed above) in the form of convertible notes totaling $1,150,000 of which $850,000 will be loaned by the Company to Rx for Africa, Inc. If the board of directors of DMEC approves the signing of the of a definitive merger agreement the Company will receive a second traunch of funding in the form of convertible notes for an additional $1,150,000 to be utilized by Rx for Africa, Inc. DMEC is in negotiation with several potential buyers to sell its existing DVD operations together with all its assets by March 31, 2007 and believes it will be able to sell the business. In the event DMEC fails to sell the business, DMEC plans to wind down the business operations and liquidate its assets. As of the date of this filing, DMEC had not signed the definitive merger agreement from Rx for Africa