PR #1 biz.yahoo.com
Thursday September 10, 12:04 am Eastern Time
Company Press Release
American International Industries, Inc. Acquires 100% of Modern Film Effects, Inc. ("CRC"), its Related Company, Digital Research Corp. ("D-REZ"), and Electronic Pictures Corp.
KEMAH, Texas--(BUSINESS WIRE)--Sept. 11, 1998--American International Industries, Inc. (OTCBB: EDII - news) announced today that it has completed the strategic acquisition of 100% of the outstanding shares of Modern Film Effects, Inc. (a California corporation), dba Cinema Research Corporation (CRC), its related company, Digital Research Corporation, dba ''D-REZ'', and Electronic Pictures, Inc. (EPC), (a California corporation). EDII issued restricted shares of its common stock for 100% of the outstanding shares of the three companies. The acquisitions mark the entry of EDII into the entertainment industry. The acquired companies projected annual revenues are approximately $10 - $12 million and profitable. The transaction will be treated as a purchase for accounting purposes.
''CRC'' is the second largest company of its kind in the world, providing optical and digital special effects, titles, credits and post-production services to the motion picture industry. Located in Hollywood, the company has been in operation for over fifty years and enjoys a reputation for quality service to the major motion picture studios. Its client list includes Walt Disney Studios, Columbia, MGM, Paramount, Tristar, Universal, Warner Brothers and others. The company has maintained its investment in modern equipment in order to remain one of the leaders in motion picture post production technology and has in place significant capacity for digital processing. David Miller, CEO of Cinema Research, with over twenty years experience in the industry, will continue to serve in that capacity and Jordan S. Friedberg, with extensive experience and contacts in the film industry, will serve as President and Chief Operating Officer. The company employs about thirty people at its Hollywood processing center and intends to capitalize on its leadership position in quality post production and special effects services to the motion picture industry through the outstanding talent and professionalism of its employees. The trend toward higher definition digital processing of motion pictures has led the Company to position itself to capture a significant share of that processing business. The investment in technology to provide such services has been made and trained technicians are in place. CRC participated in such notable movie productions as ''Independence Day'', ''Zorro'', and many others. CRC is currently negotiating long-term contracts with a few major Hollywood studios.
''EPC'' will capitalize on the emerging market for high definition television, (HDTV) programs. HDTV is a part of the new digital television standard mandated by the FCC. In accordance with the FCC mandate, major television networks must commence HDTV broadcasts this year and all broadcasters have been directed to be fully converted to HDTV by the year 2006. The switch from standard television to HDTV will eventually affect every program that is distributed on television, cable, direct broadcast satellite, home video, and digital video disks. High Definition (HD) offers a wide-screen picture with video and sound quality comparable to theatrical motion pictures. Since the current television system is not compatible with HD, all new television programs must be produced in the HD format and thousands of hours of movies and TV programs that were originally produced on 35mm film must be converted to HD for future broadcast and distribution. EPC's plans are to specialize in the conversion of 35mm film to HDTV as well as the production of original HDTV documentaries and programs. Currently, EPC is working in conjunction with Cinema Research Corporation to develop a CRC HDTV production department. EPC is engaged in discussions with a number of documentary production companies about joint productions and are developing programs for Nippon Hoso Kyokai, the national broadcasting corporation of Japan, and other broadcasters.
It is presently contemplated that CRC will become a separately trading public company with its own trading symbol. An audit of the June 30, 1998 financial statements of CRC is being finalized by BDO Seidman
EDII expects to finalize filings necessary to become a fully reporting public company during October, 1998.
The 10% stock dividend EDII announced July 29, 1998 is payable to shareholders of record on August 30, 1998 and the shares issued to such holders will be distributed by September 22nd.
EDII is continuing its discussions with other potential acquisition candidates, some of which have been included in earlier press releases. EDII has five divisions: industrial, financial, oil and gas, real estate and media communications/entertainment.
This release may contain forward-looking statements that involve risks and uncertainties, including without limitation, continued acceptance of the company's products and services, increased levels of competition, new products and technology changes, the company's dependence on financing, third-party suppliers and intellectual property rights, and other risks detailed from time to time in the company's federal filing, annual reports, offering memorandum or prospectus.
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Contact:
American International Industries, Inc.
John Stump or Rebekah Ruthstrom, 281/334-4764
americanii.com
or
Cinema Research Corp.
Jordan Friedberg, 213/460-4111
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