UNDERVALUED PENNY STOCKS

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Adult Entertainment Capital Corporation Begins Trading Today Under A New Name and New Symbol, 'ADLE.'
Firm releases corporate update and confirms decision to emerge as a Business Development Company (BDC) by early October, entering the $57 billion global market place in the Adult Industry
Sep 16, 2008 7:59:00 AM


IRVINE, Calif., Sept. 16 /PRNewswire-FirstCall/ -- Adult Entertainment Capital, Inc. (AEC) http://www.adultentertainmentcapital.com (OTC Bulletin Board: ADLE) announced that NASDAQ Market Operations changed its ticker symbol to "ADLE" today. The change follows Adult Entertainment Capital's name change earlier this month (see 9/2/08 release) and announcement of plans for a major reassessment of focus for the firm. The Company (AEC) also has plans to become a Business Development Company (BDC) as early as next month.

"AEC will be the first publicly traded BDC/private equity firm ever to focus purely on the Adult Industry which has been largely shut out by Wall Street firms," said Milton "Todd" Ault III, Chairman and CEO of AEC, Inc. The Company expects to elect to become a BDC under the 1940 act by early October.

Chairman and CEO Milton C. Ault, III said, "Today we embark on a new future for our shareholders, employees, and clients where portfolio companies like Internet Lending Group (ILG) will become the model for all other firms to strive towards in terms of servicing the client from start to finish providing the capture of funds from a web site's patrons for the merchant."

The Company expects to be dually listed on a European stock exchange before year-end.

Investor Update About Adult Entertainment Capital

Adult Entertainment Capital, Inc. is an OTC traded investment and financial services company. Adult Entertainment Capital currently trades Over the Counter through stock symbol ADLE.OB. The stock symbol changed to reflect the company's name change from Zealous Trading Group, Inc., to Adult Entertainment Capital, Inc., today. The new CUSIP Number is 00740A 102.

Adult Entertainment Capital provides investment funds directly to private and public companies for a range of financial needs. We provide mezzanine and senior debt financing for buyouts in both partial and full equity partner situations including start-ups, growth ventures, acquisitions, recapitalizations and buyouts.

As a public company, Adult Entertainment Capital has the ability to enter into long term commitments with our financial clients. Our investments generally have no fixed time horizon allowing us to provide capital for add-on acquisitions that help build value after the initial closing.

Our corporate headquarters is located at 15641 Red Hill Avenue, Suite 200, Tustin, Orange County, California. Here the 12,500 square foot space is the center of operations to several portfolio companies which operate independently from one another.

The Officers of the company are as follows:

Chairman and CEO and President: Milton "Todd" Ault, III
Group President COO and CFO: William Dully
Vice Chairman: Mark Graff
Controller and Director of Public Reporting: Satyen Deshpande
General Counsel: Steve Rafalovich

Our Industry Statistics:

We are part of a $57 Billion Dollar industry world-wide. $12 Billion of this figure is US based and represents more revenue than the professional football, baseball, and basketball franchises combined or the combined revenues of ABC, CBS, and NBC.(1)

Every second of the day $3,075 is spent on the adult industry and related products.(1)

The same second of each day commands an audience of 28,258 internet users viewing adult performances.(1)

Financial Facts and Interests of Adult Entertainment Capital (AEC) and Its Portfolio Companies:

About Debt

In the past month, the Company has reduced its debt by over $1.5 Million Dollars as a result of converting their debt to equity.

The Company expects another $4 Million Dollars of debt will be converted to equity by year end.

About Stock Price

Although the Company has already received shareholder approval for a 12:1 reverse stock split, the Company has no intention at this time of reversing the stock. At present levels, the Company believes it is severely undervalued and expects significant cash flow in the coming twelve months from its portfolio companies. The Company expects to buy back stock if the stock continues to remain undervalued.

ComedyNet

We reached an agreement to acquire ComedyNet (comedynet.com) on August 25, 2008 in a deal that brings industry strong-man Mark Graff back to the adult world. Graff is Chief Executive Officer of ComedyNet, which broadcasts to 19 million homes through most major cable operators. The transaction is expected to close on or before October 5, 2008.

Internet Lending Group

In order to become a one-stop shop for its clients, ILG also provides credit card processing and various other infrastructure mechanisms for the adult space medium. The business model contains the following functions: Mediation, Collecting, Lending/Factoring, Risk Management, Direct lending, and establishment of a Group Purchasing Organization (GPO). Presently there are more than one hundred thousand people that ILG is collecting from. ILG also has $10 million dollars of collections pending from those one hundred thousand users of adult products and services with bad debt ranging from $20 to $500 per person.

Most of the advantages derived by ILG come from their various data mining efforts and the resulting statistical analysis of that data. This provides Internet Lending Group with the ability to better discern the value of these illiquid assets.

The long term goal is to identify how we might securitize these assets into commercially saleable products for institutional investors. To that end, we are committed to tracking these assets for up to twenty four months or longer to spot trends, monitor performance, and evaluate long term concerns so that we might more completely identify real value and potential opportunities of the adult marketplace.

ILG also has a focus on verifying the voracity of papers submitted to its collections arm for processing and fulfillment.

The transaction is expected to close on or before October 10, 2008.

Call Center

A state of the art telecom call center with more than 4,000 phone lines which serve as a collections center and a studio which provides audio entertainment for adults.

URL Acquisition and Management

UAM currently owns and manages more than 1,000 URLs primarily in the adult industry.

Rock Candy

Rock Candy Entertainment provides streaming tube and cam sites, including MonsterTubers.com, which offers free all-original content, and paid video streaming sites.

Zealous Holdings, Inc. ("Zealous")

Zealous Holdings, Inc. owns Zealous ATS, LLC (ZATS), through its wholly-owned subsidiary Zealous Capital Markets, LLC (ZCM), a Delaware limited liability company and registered Broker-Dealer, Member FINRA/SIPC. Zealous Holdings also owns a California based Investment Management Company, Zealous Asset Management, LLC. The company is in advanced talks to sell ZATS, its trading platform. However, there is no guarantee that the transaction will be concluded. Presently, ZCM is a full-service Broker Dealer with various investment banking clients. ZCM plans to offer various investment banking services to the adult industry when opportunities present themselves.

The Lifestyle Resort and Spa

The Company expects to close on a 140-acre east coast development project catering toward the fast-growing swingers lifestyle before year's end that will potentially result in a 60-unit time share project. The Company is presently in negotiations to build a similar resort in the Northern California wine country. At this time, there is no guarantee that either of these properties will be built. The Company expects vigorous objection and opposition from the local planning and zoning committees in regard to our planned development.

Various Other Adult Assets

The Company presently has minority stakes in various adult projects including a publicly traded gentleman's club. The Company expects to release details of its various projects in its coming quarterly filing. The projects or investments currently have no material impact on the company.

Forward-Looking Statement

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as plans, expects, should, believes, anticipates or words of similar import. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-KSB and quarterly reports on Form 10-QSB. These forward-looking statements are only made as of the date of this press release and Zealous Trading Group, Inc., does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

(1) Sources available upon request

Contacts
Black & Blue Media
[phone]
Jay Moyes and Sherry Ziegelmeyer

SOURCE Adult Entertainment Capital, Inc.