The following has been released at www.globemedia.de
Gogo
Letter to the shareholder:
October 30, 1998
Dear Shareholder:
As you know, our policy is to communicate with you on a regular basis. I am
pleased to report that our attendance at MIPCOM in Cannes was a resounding
success for the Company.
MIPCOM is the largest international television programming market convention.
Over 10,000 professionals from 100 countries attended. The conference deals
in sales, distribution and broadcast outlets, cable, video and satellite
interests around the world.
Our new relationship with Victory Media, which blossomed at MIPCOM, has grown
into a very strong alliance. Let me tell you a little about Victory and why
we believe that their method of financing will be extremely beneficial to the
Company.
Victory, based in Kaufbeuren, Germany, has more than 200 agents who deal with
raising funds through private tax shelters from more than 1500 individual
investors. At present, they have raised well in excess of $100,000,000 that
is "earmarked" for production in live action movies, miniseries and children
series.
Victory has selected our Company to become their exclusive North American
distributor. Because of the relationships that we have in other territories
outside the U.S., such as the U.K., France and the Far East, we may be
assisting them in those areas as well.
Furthermore, because these projects are fully financed and the funds already
received, the Company expects to book income as well as receive cash as soon
as we obtain signed agreements from the sold territories. This would result
in the Victory product bringing significant seven-figure income and cash to
the Company in this fourth quarter as well as in the first six months of next
year.
The two most exciting projects, "Shaka Zulu" and "Diamond Hunters," that
Victory is developing are important in the amount of monies (combined budget
of $45,000,000) that they are committing to the projects and to the exposure
it is giving us internationally.
The original Shaka miniseries, produced over 10 years ago, was a major
worldwide success. Even today, the home videos and re-runs continue to sell
well and generate significant numbers. It must be stressed that the new Shaka
is not just a story of a Zulu hero as the original miniseries was. The Shaka
of this new tale is more the characterization and incarnation of all of Black
Africa (especially South Africa). He is not ostensibly Zulu or of any one
tribe, but he and the stories incorporate the collective tradition of Africa
(both Black and White). This Shaka represents "the dream state" of Black
Africa with the variegated emotion born of Africa's history, i.e. emotions of
pride and valor, the rage of conquest, love of one's home, people and family,
defilement at the hands of slave traders, hatred and the search for
forgiveness.
There will be an international cast of renowned actors, Henry Cele will
reprise his role as Shaka and David Hasselhoff, an international star, will
play the owner of a slave ship who finds ultimate redemption. The $20 million
production will begin principal photography in Morocco in January and will
include a cast of thousands on both land and sea. It will have the feel and
look of an epic drama. Joshua Sinclair, the creator/writer of the original,
will be both writer and director for this version, while Guido DeAngelis and
his company, TPI, will oversee three months of principal production and four
months of post production. The miniseries should be completed and delivered
by September 1999. David Hasselhoff, who has the starring role in both
miniseries, was present at our booth. He attracted many media buyers which
also helped in the sale of our other products.
We have attached a copy of the Hollywood Reporter's articles on "The Diamond
Hunters" and "Micronauts."
Beside the two miniseries we announced prior to MIPCOM, we will shortly sign
agreements to distribute at least two children series as well as assist
Victory in marketing their extensive and valuable CD-ROM library in the U.S.
Most importantly, they have committed to produce and finance many of our
future projects.
At MIPCOM, we were also able to announce the start of the production of
"Micronauts," since the toy, Canadian and French deals were confirmed and
signed. Virtually every major territory shows interest in the property and we
expect to close deals in Germany, Spain, the Far East and many other
territories within the next month.
Our proposed series "Spies Among Us" was also favorably received at MIPCOM.
We will have further news on this project.
The Company's library of movies, documentaries and specials was well received
by the buyers and we expect that we will close (after follow-up) sales in
excess of $1,000,000.
Our made-for-television movie "Merlin" will be shown on U.S. television
stations during the months of October and November 1998. You can check the TV
listings in your area for your local station.
"Team Xtreme," which was to start production immediately, has now been delayed
to 1999. We expect that this series, which has been widely accepted by the
industry, will be very successful.
We are now in the preparation stage for NATPE (January 25-28, 1999 in New
Orleans) which is our next major show.
We are streamlining the Company and reducing overhead. We have moved our Los
Angeles office to the airport area, which has lowered our rent cost. Our New
York office is also planning a move which will bring us significant savings.
In all, we expect to save at least $25,000 monthly.
In this type of business, the formation years usually result in large losses
which create a negative situation. We feel that we are now moving to a
profitable and positive position.
We continue to appreciate your continued support and belief in KMG and
dedicate ourselves to growth and to increasing shareholder value.
Sincerely,
Henry Siegel
Chairman and CEO |
