San Francisco, CA – Conwest Resources, Inc. announced today that it had reached an agreement with 3Media Corporation for the purchase of the Falcon Family of Companies. The newly formed 3Media Corporation is comprised of Falcon senior executives Terry Mahaffey and Todd Montgomery, as well as former Conwest board member Steve Johnson. 3Media Corporation will serve as the corporate parent and holding company of the Falcon Family of Companies.

The Falcon Family of Companies has produced the world’s most sought after and immediately recognizable gay adult content for 32 years, delivering titles under the Falcon Studios, Jocks Studios, Mustang Studio and Falcon International brands. Founded in 1972 by Chuck Holmes, Falcon has consistently set the bar by which the gay adult entertainmentindustry is measured.

Upon his death, Conwest Resources and the Falcon Family of Companies became the endowment for the Charles M. Holmes Foundation, whose charter is to serve the community by funding a variety of gay and lesbian causes. The sale of Conwest Resources frees the Foundation to focus on its mission of charitable giving, while offering management more flexibility to focus on strategy, operations and growth planning.

Mahaffey and Montgomery assumed leadership roles at Falcon in June 2003. Since that time they have redeveloped domestic distribution, created new international wholesale and retail channels, and launched all new onlineshopping, streaming and membership sites. The pair plans to continue their very successful policy of joint leadership, while maintaining clearly delineated areas of responsibility within the new organization. Mahaffey will continue to focus on film production and talent development as the president & CEO of the Falcon Family of Companies, while Montgomery will maintain overall business and operational oversight as president & CEO of the operating company.

“The Falcon brand is iconic in this industry,” stated Terry Mahaffey, president & CEO of The Falcon Family of Companies, “and I am pleased and honored to be part of the team that will ensure this continues to be true in the future.”

Mahaffey continued, “As a long-time friend and co-worker of Chuck Holmes, I feel it’s vitally important that Falcon grow and prosper, while continuing the vision he created long ago.”

“We’re tremendously pleased with the growth we’ve achieved in the past year,” said Todd Montgomery, president & CEO of 3Media, “and believe that this management buyout will only make Falcon stronger and more dominant in the worldwide gay adult entertainment market.”

3Media was formed solely to facilitate the acquisition of Conwest Resources, and expects to assume the Conwest name and operate as Conwest Resource Inc. in the near future.