Chatsworth, California – August 17, 2006 ” Richard Arnold, Chief Financial Officer, and founder of Pure Play Media Holdings, Inc. (“Pure Play”) (the “Company”) and CEO of Pure Play Media, Inc., a wholly owned subsidiary of the Company, participated earlier this week in telephone interviews regarding the Form SB-2 Registration Statement that the Company filed with the Securities & Exchange Commission on July 28, 2006. The resulting online articles made statements regarding, among other things, the Company’s plans to sell shares, the SEC review process, and the Company’s financial statements.
We would like to clarify and provide further information on these statements. As we have stated before, we submitted a Form SB-2 Registration Statement with the Securities & Exchange Commission (“SEC”) to register for resale shares of our common stock held by some of our existing stockholders, and subsequently to become a reporting issuer in the United States. We are not attempting to register shares for sale by the Company to raise funds. The review process of our From SB-2 by the SEC may take several months. The timeliness of this process is at the sole discretion of the SEC, and our ability to respond to the SEC reviewers questions in a timely manner. It is our intention to apply to the NASD to received a trading symbol for the Over-The-Counter Bulletin Board to allow for the trading of our common stock upon becoming a reporting issuer under the Securities Exchange Act of 1934, as amended.
Moreover, as we have stated in our SEC filing, we will not receive any proceeds from the sale of shares offered by this prospectus. The selling stockholders will receive the net proceeds from the sale of the shares offered by this prospectus. 1,449,690 of the shares of our common stock which we are attempting to register by this Form SB-2, however, are issuable upon the exercise of common stock purchase warrants. If all of the warrants are exercised, we will receive gross proceeds of $3,624,225 from the holders of the warrants. We expect to use the proceeds from the exercise of common stock purchase warrants for general corporate purposes, including working capital and capital expenditures, and possible acquisitions of complementary businesses, or other assets.
Pure Play’s CFO and founder, Richard Arnold, stated, “Our long-term goal has always been to take the company public to provide liquidity for our existing stockholders, the opportunity of ownership for our employees, and to set the foundation for long term growth for the Company. Filing of the Form SB-2 is the first major step towards achieving these goals.”
In addition, we would like to clarify and provide further information on our total net sales, and net profit figures printed in these articles (all figures are in US dollars). As we have stated in our SEC filing, in the fiscal year ended July 31, 2005, our net sales were $8.5 million compared with net sales of $5.3 million for the year end July 31, 2004, representing an increase of $3.2 million, or 61%. We reported net income of $147,613 for the year end July 31, 2005 as compared to $248,142 for the year end July 31, 2004. The decrease in net income is primarily attributable to an increase of $100,000 in non cash losses from currency exchange transactions, and an increase in the operating costs as a result of the distribution of Private North America, Ltd.’s movie titles in the United States, and the loss of broadcast sales of Ninn Worx movie titles in the United States.
For the nine month period ending April 30, 2006 we had net sales of $8.0 million, compared to net sales of $6.4 million for the nine months ended April 30, 2005 representing an increase of $1.6 million, or 26%. We reported net income of $21,854 for the nine months ended April 30, 2006 as compared to net income of $171,897 for the nine months ended April 30, 2005. The decrease in net income is primarily attributable to the one time non cash loss of $567,200 related to the exchange of assets in connection with discontinuation of the Ninn Worx productions, and increased costs in salaries, and professional fees relating to the preparation of our Form SB-2.
ABOUT PURE PLAY MEDIA HOLDINGS, INC.
Pure Play Media Holdings, Inc. through its subsidiaries is principally devoted to licensing, developing, producing, marketing and distributing high quality multi-genre adult films. We have one wholly owned operating subsidiary, Pure Play Media, Inc., an adult media production company, and one 50% owned subsidiary, Deep Star Broadcasting Systems, Inc. which creates and licenses a domestic US cable VOD platform.
For further information please refer to the Company’s filings with the SEC on EDGAR.
If you would like to receive regular updates on Pure Play please send your email request to
bruce@turnerstevens.com.
FORWARD LOOKING STATEMENTS This news release may include “forward-looking statements” regarding Pure Play Media Holdings, Inc., and its subsidiaries, business and project plans. Such forward looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Pure Play expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Factors that could cause actual results to differ from our expectations include competition, our ability to innovate, the growth of the market for adult productions, our ability to penetrate foreign markets and general economic conditions. For a more detailed discussion of such risks and other factors, please see “Risk Factors” in our Form SB-2 and for our most recently completed fiscal year, on file with the SEC at www.sec.gov. All information provided in this release is as of August 17, 2006, and Pure Play undertakes no duty to update this information.
FOR FURTHER INFORMATION PLEASE CONTACT:
COMPANY CONTACT
Richard Arnold CFO, and founder
Pure Play Media Holdings, Inc.
866 820 3000
rarnold@pureplaymedia.com
www.pureplaymedia.com
INVESTOR RELATIONS CONTACT
(Information Requests)
Bruce Turner, President
Turner Stevens Inc.
905 795 2521
bruce@turnerstevens.com
