Existing shareholders will recall that Bruce R. Lewin - an investor in the movie "Dancin' It's On" - filed a lawsuit in New York against Hannover House and our two principal officers at the time, even though there is no agreement (verbal, written or otherwise) with Mr. Lewin for HHSE or the officers to have any obligations to him. In fact, the only contract that exists for "Dancin' It's On" is with the production company and director (David Winters), and the company has been performing its obligations under that agreement. In any event, Mr. Lewin's attorneys in New York were able to force a default judgment, which they are NOW (finally, after several years), seeking to enforce in the State of Arkansas. Hannover House will respond in the next few days (and well before the May 16 deadline) with the appropriate motions and remedies available under Arkansas law, to stay any such foreign enforcement actions and to open and adjudicate the facts of the matter. Our counsel believes that we will prevail with both goals ("freeze" of enforcement actions and "victory" in the actual matter of the\non-existent agreement with Lewin).
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