ANOTHER News Release w/"projected EARNINGS"....
I like how co. takes responsibility & properly caveats...
InnovaCom division projects $40 million in revenues
SANTA CLARA, Calif.--(BUSINESS WIRE)--June 18, 1997--Six feature-length movies are scheduled for production
during the next 18 months by Sierra Vista Entertainment, the Los Angeles-based film production division of InnovaCom, Inc.
(OTC/BB: MPEG).
Mark C. Koz, InnovaCom chairman and president, said projected revenues from the film productions will reach $40 million,
with margins approaching 20 percent. In addition, one of the upcoming productions, ``Reel Illusion,'' Koz said, will be one of
the first films scripted and planned for DVD distribution, ``utilizing much of the DVD digital video compression technology we
are developing in our Santa Clara labs.''
Robert S. Lecky, president of Sierra Vista Entertainment, and a recognized independent film producer, said in addition to
``Reel Illusion,'' a suspense thriller, the films currently in development include: ``The New World,'' a biography of composer
Antonin Dvorak; ``Noah's Rebels,'' an action/adventure story; ``Let there Be Light,'' an historical drama depicting the life of
William Tyndale who translated the Bible into English; ``Return of The Playboy,'' a drama set in Ireland; ``Midnight Raven,'' a
super-hero action adventure, and ``Gorgo,'' an animated feature.
``The synergy between InnovaCom's technology side and Sierra Vista's production capabilities is becoming more apparent for
the two enterprises as we proceed,'' Koz said. ``Sierra Vista is the only film production company that has the technical
wherewithal to undertake production of movies designed for DVD distribution and to assume a position of leadership in this
new technology.''
InnovaCom acquired Sierra Vista last month as part of its plan to expand into industries where the video compression and
DVD technology it is developing can be applied.
Cautionary statement for Purposes of the ``Safe Harbor'' Provision of the Private Securities Litigation Reform Act of 1995
This press release contains forward looking statements. These forward looking statements include, but are not limited to the
following:
InnovaCom has forecast revenues of $40 million from the production of six feature-length movies during the next 18
months;
InnovaCom expects to achieve gross margins approaching 20 percent in its Sierra Vista Entertainment subsidiary.
These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those
anticipated in the forward looking statement. Factors that might cause such a difference include, but are not limited to, the
following:
Revenue forecasts for InnovaCom's entertainment division assume that all six films scheduled for production will be
successfully financed, that there will be no delays due to negotiations with the directors and cast contracted for the
picture, that specific locations necessary for the films will be available, that the financing and creative talent for each film
will have been successfully negotiated in time for filming to be done during certain seasons of the year which may be
specific to the film being produced, that studio space and services will be available when needed, and that the feature
will be moderately successful at the box office and the DVD after market.
Forecasts of gross margins assume that each film will be produced on time and within budget. Cost overruns in the film
industry are common and delays in film production usually have the effect of increasing costs and reducing gross
margins.
Readers should not place undue reliance on the forward looking statements, which only reflect the view of management as of
the date of this press release. InnovaCom does not undertake the obligation to publicly revise these forward looking statements
to reflect subsequent events or circumstances.
InnovaCom is located at 2855 Kifer Road, S. 100, Santa Clara, CA 95051. Telephone is 408/727-2447 (CHIP). Fax is
408/727-6275. Web site address for investors is stockgroup.com . Investor relations telephone is
888/735-5417. Press contact number is 408/395-1161 and e-mail is carterel@aol.com. Sierra Vista Entertainment, Inc. is
located at 11811 W. Olympic Blvd., S. 101 Los Angeles, CA 90064 . Telephone is 310/996-2400. Fax is 310/996-7773. |
