Porn valley- Jill Kelly Productions Holding, Inc. (Pink Sheets:JKXJ), a leading U.S. adult entertainment company that develops, produces, licenses and distributes quality films worldwide, announced this month its financial results for the nine months ended September 30, 2004.

Revenues for the first nine months increased 11% to $3.39 million from $3.04 million during the same period in 2003. Gross profit for the first nine months of 2004 grew over 30% to $1.89 million from $1.45 million during the same period in 2003. The Company believes that this increase in gross profit is the result of its implementation of a substantially expanded sales and marketing program enhanced by new joint production and distribution ventures. The increase in SG&A expenses, in turn, reduced operating income to $58,000 from $640,000 for the same period of 2003. Finally, as of September 30, 2004, net stockholder equity reached $5.397 million.

“The first nine months of 2004 set the tone for the Company’s bright prospects,” observed Robert A. Friedland, Chairman & CEO of Jill Kelly Productions Holding, Inc. “Since the beginning of the year, we’ve taken steps to position the company for what we see to be a very exciting and rewarding future. We have concentrated on increasing our sales and laying the groundwork for sustainable growth and profitability. We opened a new warehouse facility in California and moved both our operations and expanded sales force to it. We’ve continuously broadened our product offerings and expanded to new markets, often through new revenue-sharing production agreements. For instance, our deals with Erotic Media, Bizarre and Gwen Media, and our new BLU and Collateral Damage XXX lines will expand our film library and are expected to increase our DVD and VHS sales. Most importantly, by cross-selling our products, we believe the value of each of our domestic and international business initiatives is significantly magnified.”

Mr. Friedland concluded, “The impact of our efforts will be seen as time progresses. We look forward to reporting end-of-the-year results and future developments as Jill Kelly Productions Holding, Inc. progresses on its path toward growing revenues and earnings, and increasing shareholder value.”