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Allied Artists International, Inc.

Entertainment is big business and when managed correctly and responsibly, can and will be extraordinarily profitable. In today's industry, the entertainment corporation that can utilize a business model with the ability to build a foundation of consistent releases over many channels (film, video and music) while integrating cross-marketing platforms to exploit these properties within a global economy, will realize success. ALLIED ARTISTS INTERNATIONAL, INC. is just such a company. The ALLIED name is well recognized with more than 70 years of history behind it. With its Music Group subsidiaries ALLIED ARTISTS RECORDS and ALLIED ARTISTS MUSIC DISTRIBUTION, and the motion picture subsidiaries ALLIED ARTISTS PICTURES, MONOGRAM PICTURES, and ALLIED ARTISTS FILMS (distribution), ALLIED ARTISTS INTERNATIONAL, INC. encompasses all the subdivisions and auxiliary channels necessary to capitalize on this growing and increasingly competitive industry.

 Recorded music has become a $40 billion a year industry, and continued growth patterns are a certainty. In the United States alone, 99% of Americans are exposed to AM/FM radios. Pre-recorded music sales in the United States have an annual dollar value in excess of $13 billion, while the new DVD industry boasts shipments of $8.25 billion worldwide. ALLIED ARTISTS RECORDS stands as an independent boutique label ready to service niche markets. ALLIED ARTISTS RECORDS has the potential for unparalleled success in an evolving industry of crossover music and burgeoning foreign sales. For music, the biggest growth in retail sales is found in Brazil, Eastern Europe, South Africa, Hong Kong, and Japan. Meanwhile, the entertainment market in Latin America is booming. Latin music sales worldwide are increasing exponentially to an estimated $1 to $2 billion this year. ALLIED ARTISTS RECORDS is prepared to inundate that market and cater to the needs of Hispanic Americans for Spanish language or Latin flavor entertainment.

 Likewise, involvement in the film industry can be equally advantageous. Of course, the ALLIED ARTISTS and MONOGRAM PICTURES names have a long history in the motion picture arena. Star-studded, larger budget action films are normally "popular" by virtue of their star power alone, but not always profitable. Therefore, it is necessary to craft an intelligent crossover merchandising plan, while capitalizing on post-market revenue and non-box office sources, in order to ensure profitability. Statistics show 82% of film revenues now come from non-box office sources and peripheral income such as video and theme merchandising. Moderate budget films are also showing tremendous profit and are fast becoming the preferred studio project. With VCRs and DVDs now in an estimated 85% of American households, it is no wonder that video cassette and DVD rentals and purchases last year reached $20 billion. ALLIED ARTISTS INTERNATIONAL, INC. has all these avenues covered. ALLIED ARTISTS PICTURES is destined to re-establish itself as the industry force it once was!