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May 08, 2001 07:23am
PRVT: Private Media Group Expands in North America
Source: Private Media Group Inc.
by: Company Press Release

(BARCELONA, Spain) -- Private Media Group Inc. (Nasdaq: PRVT - news), worldwide leader in premium-quality, adult entertainment products, services and Internet content, today announced the recent acquisition of the assets of Private USA, Inc. and the start-up of the subsidiary Private North America, Inc.

Under the terms of the agreement, Private Media Group has taken over all assets and the management of all operations previously handled by Private USA and will continue to develop the business through the subsidiary Private North America.

Based in Los Angeles, USA, Private USA, has been one of Private's key distributors. In fiscal 1999 and 2000, Private USA represented revenues of Private Media Group of $2,123,564 and $2,957,732 respectively and sales is expected to increase approximately 100% during the first year of operations.

Mr. Richard Arnold has been appointed President of Private North America. Mr. Arnold's established track-record and knowledge of the industry and the North American territory, together with his assistance in the development in the region, will continue to be an important asset in developing and implementing the Company's strategy for the US territory.

Mr. Berth Milton, Chief Executive Officer of Private Media Group, said: ``The expansion of our operations in the US will further strengthen Private's position as the world leader in premium Adult Entertainment. Private North America represents an excellent opportunity to secure a growth platform in the US. It will provide greater exposure in this territory, which is one of the most important and competitive.''

``We are very excited with the great potential of Private North America,'' said its President, Mr. Richard Arnold. ``Private is the strongest brand name in Adult Entertainment and we want the USA to be Private Media Group's strongest territory.''

The leading publicly-quoted adult entertainment company in the world, Private Media Group Inc., is the founder of the globally established brand name 'Private' and has positioned itself in the marketplace with a visionary management strategy that combines both New Economy (Internet, multimedia, e-commerce) and Old Economy (videos, magazines) business models. Maintaining a total adult lifestyle philosophy, this is reflected in the Company's broad range of products and services, both proprietary and licensed, and its strategic policies of development, diversification and acquisition.

For more info about Private Media Group, please visit the Company's corporate Web site at www.prvt.com.

This release contains, in addition to historical information, forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgements of those issues. However, because these statements are forward-looking and apply to future events, they are subject to unpredictable circumstances, which could lead to results materially different from those anticipated by the Company.

For further information about Private Media Group, please contact: In Barcelona, Spain: Andre F. Ribeiro, +34-679-983-772, andre@private.com.

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