CMKM Diamonds Inc. (fka CMKX)

[sublime]

August 17, 2004 04:20 PM US Eastern Timezone

London Investment Company Enters Into Agreement with Avenue Group for the Purchase of $11 Million of Avenue Shares

ENCINO, Calif.--(BUSINESS WIRE)--Aug. 17, 2004--Avenue Group, Inc. (OTCBB:AVNU) announced today that it has signed an agreement with a private investment company for the purchase by the investment company of $11 million of Avenue common shares in exchange for shares of the investment company.


The investment company is a newly formed London-based company that will apply for its shares to be admitted to trading on the London stock exchange as an investment trust. The investment company has been established specifically to invest in US micro cap companies with long term growth potential. The investment company expects its shares to be trading on the London Stock Exchange by September 30, 2004.

"This investment will strengthen Avenue's balance sheet and potentially will provide Avenue with the additional working capital required to continue to pursue our oil and gas activities and for corporate overhead," said Levi Mochkin, CEO of Avenue Group.

The investment company has entered into a "lock-up" agreement with Avenue pursuant to which it has agreed not to trade the Avenue shares it will receive as a result of this transaction for a period of two years from the closing date. In full payment for the shares of Avenue Group, the investment company will issue to Avenue USD $11 million equivalent of its shares at a price per share valued at One Pound Sterling.

Fifty percent of the investment company's shares will be held in escrow for two years following their issuance and in the event the per share market price of the Avenue common stock at such time is less than the per share value of the Avenue stock at the time of the closing, the investment company shall be entitled to receive out of escrow a percentage of the shares equal to the percentage of such decline. The remaining shares held in escrow shall be released to Avenue at such time. The closing of this transaction is subject to certain contingencies, including the listing of the investment company shares on the London Stock Exchange on or before September 30, 2004. Avenue cannot state with certainty whether the investment company shares will be listed on the London Exchange prior to September 30th; what, if any market for such shares will exist thereafter and what the trading value of the shares will be.

For additional information about Avenue Group, Inc., please see our website at http://www.avenuegroupinc.com.

About Avenue Group

Avenue Group, Inc. (AVNU), engages in oil and gas exploration and development through its wholly owned subsidiary Avenue Energy. In November 2002, Avenue concluded a strategic alliance with the Sayer Group of companies in the Republic of Turkey. Avenue currently holds interests in petroleum licenses and leases, which constitutes one of the largest non-government owned petroleum exploration and production acreage spreads in Turkey. Avenue's Arabian Basin licenses and leases are located on a fairway of producing oilfields of SE Turkey (including Turkey's largest oilfield, the Raman Field) and the producing oilfields of north eastern Syria and north western Iraq.

Avenue has been producing high grade light crude oil from its Karakilise-1 discovery well, located in the Diyabakir Petroleum District of southeast Turkey, since September, 2003.

Avenue, through its various subsidiaries, is also engaged in e-commerce and digital media businesses through its equity interests in several other companies, including: VideoDome.com Networks, Inc., Stampville.com, Inc. and ROO Media Corporation (OTCBB:ROOG). Avenue has offices in Los Angeles, Calif., Melbourne, Australia and Ankara, Turkey.

Certain information contained in this Press Release are considered forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 (the "Act"), which became law in December, 1995. In order to obtain the benefits of the "safe harbor" provisions of the Act for any such forward-looking statements, we wish to caution investors and prospective investors about significant factors which, among others, have in some cases affected our actual results and are in the future likely to affect our actual results and cause them to differ materially from those expressed in any such forward-looking statements. This Press Release contains forward-looking statements relating to future operational, business prospects and the trading value of the Langley and Avenue Shares. Actual results may differ as a result of factors over which we have no control, including general economic and business conditions; effects of war or terrorists acts on the capital markets or the Company's activities, including oil and gas exploration and production. The Company's results may also be affected by competition; success of operating initiatives; operating costs; advertising and promotional efforts; the existence or absence of adverse publicity; changes in business strategy or development plans, the work at the Karakilise and other licenses and the workovers at the Kahta license, any additional activities at these licenses suggested by the operator, the ability to retain management; the outcome of certain pending disputes with the Company's operator in Turkey; availability, terms and deployment of capital; business abilities and judgment of personnel; availability of qualified personnel; labor and employment benefit costs; changes in, or failure to comply with various government regulations; slower than anticipated completion of research and development projects and movements in the foreign exchange rate. Future results with respect to oil and gas properties would be subject to the timing and amount of capital expenditures by us; drilling of wells; timing and amount of future production of oil and gas; operating costs and other expenses; cash flow and anticipated liquidity; prospect development and property acquisitions; and our marketing of oil and gas. Other factors which could affect our results with respect to its future oil and gas operation are the consummation of our acquisition of an interest in Anzoil Thailand and the timing of such transaction. These other factors include, among others: general economic conditions; oil and gas price volatility; our ability to find, acquire, market, develop and produce new properties; the risks associated with acquisitions and exploration; operating hazards attendant to the oil and gas business; downhole drilling and completion risks that are generally not recoverable from third parties or insurance; uncertainties in the estimation of proved reserves and in the projection of future rates of production and timing of development expenditures; potential mechanical failure or underperformance of significant wells; the strength and financial resources of our competitors and our ability to find and retain skilled personnel. Changes in valuation of the Langley and Avenue Shares may be effected by general economic, business or market conditions in the United and in Great Britain. Valuation of the Langley Shares will be contingent in part upon the extent to which a viable trading market for such shares will be created and what the trading value for the Langley Shares will be if a trading market is created, no such trading market currently existing, and other risks listed from time to time in reports filed with the Securities and Exchange Commission, which factors are incorporated herein by reference. This press Release is not an offer to sell or a solicitation of an offer to buy any securities of the Company. Any such solicitation or offer may only be made through a prospectus which has been approved by the Securities and Exchange Commission in the states in which such solicitation or offer has been approved.

Contacts


Avenue Group, Inc., Encino
Levi Mochkin, 212-655-5485
[e-mail]