Nashville Records, Inc. (NRCD)

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(.007) Nashville Records Updates Shareholders, Engages Legal Authorities to Address Unauthorized Shares Market Wire "US Press Releases "
NASHVILLE, TN -- (MARKET WIRE) -- 03/13/08 -- Nashville Records(TM) (PINKSHEETS: NSHV) today announced updates to its shareholders regarding business activities focused on 2008. According to Mr. Gene Sibbett, President, the company has arranged for a formal presentation of their flagship technology "TriMark" to a select group of investors the end of this month. Developed to provide anti-piracy support for both the music and movie industries, TriMark is expected to take a leadership role in the prevention of illegal downloads. While development continues, the technology has been embedded in the solo release, "The Blind Man Saw it All" featuring Jason Perkins under the Nashville Records label. John Taylor, creator of the technology, says NSHV was able to utilize this as part of the initial demonstration package already viewed by pre-selected prospective investors.
The Company has gained the support of several independent music labels, indicating their employing of the technology, which has been included into the feasibility study. An in-depth feasibility study, conducted over the past four months, is now complete and along with the demonstration video, is available under strict non-disclosure agreements to those prospective investors only.
Nashville Records engaged a key developer of a major technology firm to present the latest presentation video. In the presentation she is quoted as saying "the technology is absolutely ingenious" and, "TriMark is one of the most exciting technological developments ever conceived." The video covers a fairly detailed demonstration of how the technology works, why competitor attempts have failed to date, and how TriMark will provide and keep a competitive advantage.
Nashville Records also noted that development continues with the QuestPay project, and that it expects to begin beta testing by the middle of May. QuestPay is being developed as an integral component of TriMark. The company expects to provide updates to shareholders on both the TriMark and QuestPay projects by the end of May following additional testing and investor feedback.
On other matters, the company has solicited the support of both federal and state legal authorities to address the unauthorized issuance of shares that arose from the company's 504D offering last year. After eight (8) months of intensive investigation and research spearheaded by the company and its legal counsel, the company provided its detailed documentation to law enforcement officials earlier this month. Upon review authorities have agreed to pursue the matter in an effort to protect the company and its many legitimate shareholders, but the Company has been advised to disclose nothing publicly at this time.
The company also wishes to acknowledge the concerns raised by several shareholders regarding its prior announcements regarding shareholder warrants. The company has agreed that the management of such a program is difficult at best to provide the intended benefit to all shareholders and at the current stock price would not provide the benefit the company intended. The company is therefore considering alternatives, focusing on a no-cost stock dividend to its shareholder base, to take the place of the previously announced warrant program. Payout date would remain July 15, 2008 . According to Mr. Sibbett, shares would be provided utilizing those possibly recovered from the unauthorized share issuance or from Mr. Sibbett's own personal holdings to avoid dilution of the existing outstanding shares. More details on the revamping of this plan will be provided when the company issues the TriMark and QuestPay update next quarter.
In closing, the company expects sales figures for the 2007 Christmas album will post in April. Mr. Sibbett clarified that numbers typically run on a 90-120 day lag, and that royalties may take eight or more months to payout, due to licensing agent policies and workload. The company will provide results when available, coupled with an update on Jason's first release, and the release plans for his upcoming single, "Overtime at Home."
Legal Notice Regarding Forward-Looking Statements
The statements in this press release that relate to the Company's expectations with regard to the future impact on the Company's results are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. This information may contain statements that involve risk and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.
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