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1/11/2006
RMD Entertainment Group Releases Shareholders Letter
BAY CITY, MI -- (Market Wire - Jan 11, 2006) -- RMD Entertainment Group (OTC: RMDG) today released a letter to the shareholders from Mr. Giorgio Costonis, CEO of RMD Entertainment Group.
To the Shareholders of RMDG
It is my sincere pleasure to address you all in regards to the significant progress that we have made during my tenure here at RMDG as Chief Executive Officer. Let me first touch upon the fact that I appreciate that the shift from defense contractor to Hip Hop Entertainment Company was a significant and radical change in the eyes of shareholders that invested in our company back in the days of Sciax Corporation. To me, the question is not whether we manufacture counter terrorism products or become a significant world entertainment entity. It is simply a question of economics. I was very encouraged by the economic opportunity for RMDG in the entertainment field and that is why we changed our main focus to that initiative. With that in mind we had several key goals that we set out to meet head on and were very successful in reaching them collectively. They are as follows:
1. Reduce past debt to the company and secure financing options for capital
requirements.
2. Create a world market for our product.
3. Complete products for sale in this market.
4. Engage in strategic alliances with technology driven vendors of music
and video.
5. Diversify our product offering to our target audience (sell more than
music).
6. Examine Sciax Defense and come up with a plan that will benefit
shareholder value going forward.
In order to reduce past debt to the company we had to change the existing capital structure of the company. This was accomplished by restructuring the company through a stock reversal which was also accompanied by the name change from Sciax Corp to RMD Entertainment Group. Although this decision was not popular among shareholders at the time it allowed us to be very proactive in resolving any issues with past vendors of the company and allowed us the possibility of several options for financing the current initiatives of RMDG. We have paid a significant amount of the debt down in the company and will continue to do so until it is completed. We are hopeful that we will be very close to completing any remaining financial clean up by the end of 2006. I am also pleased to announce that we now have a financial vehicle in place that I am confident can meet our needs as we continue to grow as a major player in the one billion dollar a year Hip Hop Entertainment market.
We have been extremely successful in creating a world market for RMDG music products. Our staff has successfully signed 56 distribution deals world wide for our music catalogue to date. There is not a continent in the world that our product will not be available in this year. Hip Hop is a world-wide phenomenon so we aggressively targeted the globe in our business practices. We are now positioned to be key players in 2006 and beyond in both the traditional sales of CD format product with our deals in North America with Bungalo Records (Exclusively distributed by Universal Music and Video Distribution) and The Pickwick Group for our European distribution. In addition, we have consummated deals with 54 distributors throughout the world for digital download and mobile ring-tone distributors. The mobile ring-tone market was very big on our radar screen as it is a $350 million a year business and continues to grow at a rapid pace. One again, for more information on the distribution of RMDG product I invite you to visit our new website at www.rmd-entertainment.com for a detailed account on all contracts and territories that we currently cover. It is with great pride I can say that our products truly span the globe.
The mandate was given to our staff that while we were increasing our overall potential market on a global scale we would create music products simultaneously to sell in those markets. To this end we signed two key artists onto our roster that we planned on releasing at the end of the first quarter of 2006 and the beginning of the second quarter of 2006. These artists are Roc Monee and Big Kuntree. We actually used their music material as the basis to continue to secure distribution deals world wide as we were in the process of recording their debut albums for our record label RMD. The initial response to their material has been very positive and we remain confident that both artists will bring significant earnings to RMDG in 2006. Roc Monee is putting the finishing touches on his album currently with a tentative release schedule of March on our books and Big Kuntree is half way through his recording with a tentative release date of the end of April on RMD. In addition, we entered into a joint venture with Bungalo Records for Platinum Artist Heavy D's new album scheduled for end of March early April release.
Technology is the new voice in entertainment currently. Our management wanted to find additional ways to exploit our music outside of traditional formats. There is an ongoing war for musical content and we intend to capitalize on every title that we own going forward. We have begun to forge relationships with several alternative content delivery providers such as Real Networks and Ewan 1 to maximize our revenues on all music releases. We continue to forge these relationships with great vigor and will have several key announcements in this regard in the coming months. I am pleased with our progress thus far in this growing market.
While we feel confident that we are able to reach our target demographic with music products on a global scale we are not satisfied with selling music products to our consumers exclusively. We have been searching for the perfect compliment to our record label RMD where we could significantly increase our overall earnings and engage in heavy cross promotion between the two entities. We found that match with D'Apparell the maker of DBands. DBands are the patented design sports safety/hip hop lifestyle headbands and hats that have been gaining significant exposure this past year not only because of their performance during sporting events but also their unique design that has made them the newest and hottest street wear in Hip Hop today. This company has the potential to earn significant revenues in 2006 and beyond and discussions are under way currently for major distribution for the product on a world wide basis. Management believes that the Dbands line can expand to the point where we can eventually compare it to successful Hip Hop apparel lines like Sean John by Diddy for Bad Boy Records and Roc A Wear for Roccafella Records. Both of these companies, once established, earned well into the tens of millions of dollars and even outperformed their record label's earnings during certain time periods.
Sciax Technology's defense business has been examined very carefully by management and we have formulated a plan that I am confident will benefit our shareholder base. Currently there is a substantial royalty payment due to Sciax Technology from an existing contract. We will collect any funds owed to us in this regard and continue to examine all opportunities in the defense business. This decision will be made with the utmost care with shareholder value and economic benefit being the focus.
In conclusion I say this to you. We have taken every step necessary to put RMD Entertainment Group in a position to win. I am confident that I have made the right decisions and that we have undertaken all compulsory actions needed to create a high powered entertainment entity that can effectively compete with any similar company within its realm on a global basis. The earnings that we are positioned for this year are considerable. I anticipate a significant upswing in stock value during the year if we reap these earnings. It is my personal goal to make RMDG the most recognized Hip Hop Entertainment on the planet and you have my pledge that my staff and I remain completely dedicated and focused in this regard. I thank you for your continued support and look forward to our future successes together.
Best Regards to All,
Giorgio C Costonis
Chief Executive Officer
RMD Entertainment Group
Contact:
Jed Wallace
Publicist (for RMD)
Phone: (310) 234-3200
jwallace@mphpr.com
To the Shareholders of RMDG
It is my sincere pleasure to address you all in regards to the significant progress that we have made during my tenure here at RMDG as Chief Executive Officer. Let me first touch upon the fact that I appreciate that the shift from defense contractor to Hip Hop Entertainment Company was a significant and radical change in the eyes of shareholders that invested in our company back in the days of Sciax Corporation. To me, the question is not whether we manufacture counter terrorism products or become a significant world entertainment entity. It is simply a question of economics. I was very encouraged by the economic opportunity for RMDG in the entertainment field and that is why we changed our main focus to that initiative. With that in mind we had several key goals that we set out to meet head on and were very successful in reaching them collectively. They are as follows:
1. Reduce past debt to the company and secure financing options for capital
requirements.
2. Create a world market for our product.
3. Complete products for sale in this market.
4. Engage in strategic alliances with technology driven vendors of music
and video.
5. Diversify our product offering to our target audience (sell more than
music).
6. Examine Sciax Defense and come up with a plan that will benefit
shareholder value going forward.
In order to reduce past debt to the company we had to change the existing capital structure of the company. This was accomplished by restructuring the company through a stock reversal which was also accompanied by the name change from Sciax Corp to RMD Entertainment Group. Although this decision was not popular among shareholders at the time it allowed us to be very proactive in resolving any issues with past vendors of the company and allowed us the possibility of several options for financing the current initiatives of RMDG. We have paid a significant amount of the debt down in the company and will continue to do so until it is completed. We are hopeful that we will be very close to completing any remaining financial clean up by the end of 2006. I am also pleased to announce that we now have a financial vehicle in place that I am confident can meet our needs as we continue to grow as a major player in the one billion dollar a year Hip Hop Entertainment market.
We have been extremely successful in creating a world market for RMDG music products. Our staff has successfully signed 56 distribution deals world wide for our music catalogue to date. There is not a continent in the world that our product will not be available in this year. Hip Hop is a world-wide phenomenon so we aggressively targeted the globe in our business practices. We are now positioned to be key players in 2006 and beyond in both the traditional sales of CD format product with our deals in North America with Bungalo Records (Exclusively distributed by Universal Music and Video Distribution) and The Pickwick Group for our European distribution. In addition, we have consummated deals with 54 distributors throughout the world for digital download and mobile ring-tone distributors. The mobile ring-tone market was very big on our radar screen as it is a $350 million a year business and continues to grow at a rapid pace. One again, for more information on the distribution of RMDG product I invite you to visit our new website at www.rmd-entertainment.com for a detailed account on all contracts and territories that we currently cover. It is with great pride I can say that our products truly span the globe.
The mandate was given to our staff that while we were increasing our overall potential market on a global scale we would create music products simultaneously to sell in those markets. To this end we signed two key artists onto our roster that we planned on releasing at the end of the first quarter of 2006 and the beginning of the second quarter of 2006. These artists are Roc Monee and Big Kuntree. We actually used their music material as the basis to continue to secure distribution deals world wide as we were in the process of recording their debut albums for our record label RMD. The initial response to their material has been very positive and we remain confident that both artists will bring significant earnings to RMDG in 2006. Roc Monee is putting the finishing touches on his album currently with a tentative release schedule of March on our books and Big Kuntree is half way through his recording with a tentative release date of the end of April on RMD. In addition, we entered into a joint venture with Bungalo Records for Platinum Artist Heavy D's new album scheduled for end of March early April release.
Technology is the new voice in entertainment currently. Our management wanted to find additional ways to exploit our music outside of traditional formats. There is an ongoing war for musical content and we intend to capitalize on every title that we own going forward. We have begun to forge relationships with several alternative content delivery providers such as Real Networks and Ewan 1 to maximize our revenues on all music releases. We continue to forge these relationships with great vigor and will have several key announcements in this regard in the coming months. I am pleased with our progress thus far in this growing market.
While we feel confident that we are able to reach our target demographic with music products on a global scale we are not satisfied with selling music products to our consumers exclusively. We have been searching for the perfect compliment to our record label RMD where we could significantly increase our overall earnings and engage in heavy cross promotion between the two entities. We found that match with D'Apparell the maker of DBands. DBands are the patented design sports safety/hip hop lifestyle headbands and hats that have been gaining significant exposure this past year not only because of their performance during sporting events but also their unique design that has made them the newest and hottest street wear in Hip Hop today. This company has the potential to earn significant revenues in 2006 and beyond and discussions are under way currently for major distribution for the product on a world wide basis. Management believes that the Dbands line can expand to the point where we can eventually compare it to successful Hip Hop apparel lines like Sean John by Diddy for Bad Boy Records and Roc A Wear for Roccafella Records. Both of these companies, once established, earned well into the tens of millions of dollars and even outperformed their record label's earnings during certain time periods.
Sciax Technology's defense business has been examined very carefully by management and we have formulated a plan that I am confident will benefit our shareholder base. Currently there is a substantial royalty payment due to Sciax Technology from an existing contract. We will collect any funds owed to us in this regard and continue to examine all opportunities in the defense business. This decision will be made with the utmost care with shareholder value and economic benefit being the focus.
In conclusion I say this to you. We have taken every step necessary to put RMD Entertainment Group in a position to win. I am confident that I have made the right decisions and that we have undertaken all compulsory actions needed to create a high powered entertainment entity that can effectively compete with any similar company within its realm on a global basis. The earnings that we are positioned for this year are considerable. I anticipate a significant upswing in stock value during the year if we reap these earnings. It is my personal goal to make RMDG the most recognized Hip Hop Entertainment on the planet and you have my pledge that my staff and I remain completely dedicated and focused in this regard. I thank you for your continued support and look forward to our future successes together.
Best Regards to All,
Giorgio C Costonis
Chief Executive Officer
RMD Entertainment Group
Contact:
Jed Wallace
Publicist (for RMD)
Phone: (310) 234-3200
jwallace@mphpr.com
# posted by Clyde @ 11:13 PM 
