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Adam & Eve Announces Reorganization Changes- Downsizing West Coast Operations

Hillsborough, NC – Adam & Eve today announced a number of corporate changes
are scheduled to take place in the near future.

To take advantage of existing economies in North Carolina and to improve
communication, creativity and collaboration, Adam & Eve Pictures is
reorganizing its operations in Chatsworth, California.

³Our goal was to dramatically increase sales through the Chatsworth office.
We did indeed increase sales in 2007 during an otherwise declining market,
but the trends at this time in the general economy and the entertainment
industry as a whole are impacting us as well.² says Bob Christian, Adam &
Eve Pictures¹ General Manager.

³There have been other benefits to having a west coast presence, in addition to the increase in DVD sales and licensing revenue. We have successfully attracted talent such as Adam & Eve contract stars Bree Olson, Ava Rose and Kayden Kross. We have been closer to our productions and developed relationships such as the one which lead to Roller Dollz with partner Zero Tolerance.² continues Christian.

“We will still have a presence on the west coast ­just a smaller footprint.”

“We will work to maintain the benefits of the west coast office that we have seen, while reducing our overhead. It is a business decision,” says
Christian.

Peter Reynolds will focus on licensing worldwide movie rights, and Ryan
Thomas will head up DVD unit sales. Order fulfillment will take place out of the PHE warehouse in NC.

Bruce Whitney will remain in Chatsworth as Production Coordinator, while Meredith Christopher will serve as executive producer for all our lines. These changes will be effective July 1.

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