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The Entertainment Internet Announces Merger with 1st Miracle Group, Stock-for-Stock LOS ANGELES, Aug. 9 /PRNewswire/ -- The Entertainment Internet, Inc. (OTC Bulletin Board: EINI), a global provider of information and data distribution services specifically designed for the entertainment and media industries, and 1st Miracle Group, Inc. (OTC Bulletin Board: MVEE), an independent and diversified film company, today announced the signing of a definitive merger agreement. The merger will occur shortly after shareholder ratification by both companies. EINI will be the surviving entity and each 12 shares of MVEE will be exchanged for approximately 1 share of EINI, which will result in EINI shareholders owning approximately 50% of the combined entity and MVEE shareholders owning approximately 50%. Based upon EINI's Friday, August 6, 1999 closing price of $0.843, the agreement values MVEE at $0.49 per share, a nearly 100% premium to MVEE shareholders, based on Friday, August 06, 1999's closing price of $0.041. This transaction is expected to be accretive to both EINI and MVEE shareholders. The combined company is expected to have a pro forma market capitalization of approximately $36 million. A combination of the current management of both companies will operate the new combined entity. The surviving trading symbol will be MVEE. The new company will reform as Miracle Entertainment, Inc. Mr. Mohamed Hadid will serve as Chairman of the Board, and Tony Cataldo will serve as Co-Chairman and CEO of Miracle Entertainment, Inc. The Entertainment Internet, Inc.'s mission is to be the dominant global provider of information, data and e-commerce specifically designed for the entertainment and media industries. The Entertainment Internet is the parent company of CastNet.com, the leading online casting service that has expanded from Hollywood to New York City. CastNet.com's submissions span the continents; actors in countries such as Germany, England, and South Korea have joined the service. Thom Mount, President of the Producers Guild of America, former President of Universal Pictures, Co-Founder of the Los Angeles Film School, and current Board Member of The Entertainment Internet, Inc., stated, "CastNet.com's new leadership under Chairman Mohamed Hadid promises to rapidly accelerate the already fast-paced growth of the Company." 1st Miracle Group, Inc. is an independent and diversified film company with a unique corporate structure based on strategic and exclusive alliances with high quality content producers, including Long Road Films and Emmett/Furla Films. 1st Miracle Group recently acquired the rights to Alicia's Book, a highly sought after, original screenplay by Stanford Whitmore, and has secured $15 million in financing for the motion picture from Millennium Films. Additionally, 1st Miracle Group has commitments of approximately $28 million for the financing of two other films, of which details will soon be released. World famous action hero Jean-Claude Van Damme, a MVEE Board Member, stated, "As an actor and business executive, I see this as an ideal marriage for both actors and film makers." "The combined company plans to continue to pursue their unique and synergistic lines of business," stated Mr. Mohamed Hadid, Chairman of The Entertainment Internet, Inc. "Upon consummation of the merger, a new board will be formed with representatives from EINI and MVEE." Tony Cataldo, CEO of 1st Miracle and President of CastNet.com, stated, "This transaction is expected to create a scale of synergies that, when realized, will greatly benefit the shareholders of both companies. We believe that this is an excellent time to be involved in the entertainment and Internet industries. They compliment each other and can only grow exponentially." This statement includes forward-looking information as that term is defined in the Private Securities Litigation Reform Act of 1995, and, therefore, is subject to certain risks and uncertainties. There can be no assurance that the actual results, business conditions, business developments, losses and contingencies and local and foreign factors will not differ materially from those suggested in the forward looking statements as a result of various factors, including market conditions, competition, advances in technology and other factors. SOURCE The Entertainment Internet, Inc |
