SMCE SMC Entertainment Inc (PK)

SMC Recordings (PINKSHEETS: SMCE), Independent Hip-Hop/Rap Label, today announced selected preliminary results for the year 2009 and provided additional information about 2010. The 2009 results presented in this release are based on preliminary financial data and are subject to change until the year-end financial close process and audit are completed.

Based on preliminary results, total net revenue for 2009 is now expected to be about $2.1 million and earnings are expected to be a small loss from operations. Expected net revenues for 2009 are a 34% improvement from 2008. The expected growth in net revenue in 2009 is due to a combination of an improvement in gross sales of over 50% as compared to last year, and lower returns (21% return rate compared to 56% in 2008). Reporting net revenues by sales type shows both physical (41% growth over 2008) and digital net sales (16% growth over 2008) improved in 2009.

While a wide range of results remains possible, we expect revenue growth and profitability for 2010. Based on current opportunities, we believe we could have a strong year. Many variables may impact this outlook, but one significant item is the timing of the availability and release of our projected artists' album releases for the year, including the completion of closing pending acquisitions.

In making the announcement, David Newberg, CFO for SMC, states, "The sales and operation achievements made in 2009 provide the momentum for the company to continue to improve in 2010."

About SMC Recordings:

Established in March of 2005, SMC Recordings is home to independent music and artists. Based in San Francisco, CA, the company's prized accomplishment is its unique philosophy of artist development, where artists are encouraged to participate with the label from inception through maintenance of their careers. This innovative structure has garnered industry veterans to join the company and aid in its growth. SMC is distributed by Fontana, the indie distribution subsidiary of Universal. It is SMC's humble regional beginnings and loyalty to their artists and their careers that will guarantee the company to always be on the precipice of creativity and expansion in the music game.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

Contact: Ron Taylor SMC Recordings 415-742-6177 investors@smcrecordings.com