HHSE Hannover House Inc (PK)

Hannover House, Inc., the rebranded corporate name for Target Development Group, Inc., (Pink Sheets:TDGI), reports  enhanced profitability from current sales activities that are more focused on the company's core home video business, rather than on theatrical releases which predominated company resources during 2011. For the first quarter of 2012, along with projections for the second quarter, the company anticipates an overall increase in revenues of approximately 43% over the same two periods in 2011. However, due to greater profit margins and reduced capital expenditures, the company forecasts a more significant bottom line improvement in the range of 128% over the previous year's results. Hannover House has been profitable every quarter since becoming part of Target Development Group, Inc., effective back in January, 2010.

"Releasing titles directly to the home video and VOD markets is simply more efficient and less cash intensive than theatrical releases," said D. Frederick Shefte, President of Hannover House. "A limited theatrical release campaign has been costing the company in the range of $200,000 or more per title, whereas that same amount could fund the release of up to ten titles for the home video market. Our direct-to-video titles have collectively and consistently outperformed the theatrical titles in both revenues and profits. Conventional wisdom suggests that a successful theatrical release can provide a locomotive pull for other titles in an independent distributor's catalog. So, while we will not be abandoning the theatrical business, we will be maturing into a more sophisticated approach for future theatrical titles.  Already this year, we are seeing positive results from our current model of balancing these two revenue streams."

Despite the company's renewed commitment to the home video market, Hannover House is gearing up for what it anticipates will be the company's most commercial theatrical release to date. This summer, Hannover House will release the acclaimed, award-winning film, "Toys in the Attic," featuring Forest Whitaker, Joan Cusack and Cary Elwes providing voice talent for the stop motion animated toys that were meticulously brought to life by Czech filmmaker Jiri Barta. In its original Czech language version, "Toys in the Attic" won the grand prize at the New York International Children's Film Festival. The English language version will be far more audience friendly, predicts Eric Parkinson, CEO of Hannover House.

"This is an amazingly visual film, and our English adaptation has made it an equally amazing sounding film," said Parkinson. "It's unique, enchanting, family-friendly and artistically credible. We believe the film has a multi-million dollar box office potential, and that it could be the company's highest grossing title for 2012," he continued.

Hannover House is exploring possible cross-promotional and sponsorship opportunities to support the theatrical and home video releases of "Toys in the Attic." Last year, Hannover House brought in SeaWorld to assist with the release of the "Turtle: The Incredible Journey." For prior releases, Parkinson has structured film cross-promotions with a variety of major sponsors including McDonalds, Pizza Hut, American Airlines, VISA and the Children's Miracle Network.

"There are several significant players in the consumer products arena that are realistic partners for Hannover House with this film," said Parkinson. "There literally is nothing else out there in the marketplace like 'Toys in the Attic,' and we think we can build on this strength to deliver a high-profile, highly-visible theatrical release."

Regarding DVD, Blu-Ray and Video-On-Demand, titles being released by Hannover House during the first two quarters of 2012 include: "All's Faire In Love", "Boggy Creek", "Cook County", "Pink Skies", "Edgar Allan Poe's Requiem for the Damned", "Humans Vs. Zombies", "Buried Alive" and four new multi-pack configurations from the company's film library.

Press & Media: For More Information, contact: Leigha Schilling, 479-751-4500, Leigha@HannoverHouse.com

Safe Harbor Statement and Disclaimer

This news release includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects", "projects", "plans", and certain of the other foregoing statements may be deemed forward-looking statements. Although Hannover House believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. These include risks related to unexpected adverse developments in the status of the properties, or other unanticipated occurrences.

CONTACT: Press & Media:
         Leigha Schilling
         479-751-4500
         Leigha@HannoverHouse.com