WEST HOLLYWOOD, Calif.--Jill Kelly Productions Holding, Inc. (OTC:JKXJ), a leading U.S. adult entertainment company that develops, produces, licenses and distributes quality films worldwide, today announced that it has signed an exclusive license and distribution agreement with Bizarre Video, a New York based specialty adult entertainment film production company.
Jill Kelly Productions (JKP) is one of the top five adult entertainment companies in the U.S. with more than 250 movies in its video library and works with over 150 independent distributors, retailers, cable, satellite and hotel television operators, and internet webpage operators, worldwide. As part of its strategic growth plan of adding product and increasing sales, it has agreed to distribute the specialty adult entertainment films of Bizarre Video, which currently has over 1,000 existing film titles. In 2003, Bizarre Video's sales were approximately $2.4 million. The exclusive license gives JKP the right to make additional copies of these films, as well as create and produce new feature films, shorts or other projects that incorporate the intellectual property assets of Bizarre Video. The agreement also grants JKP the option to purchase the assets of Bizarre Video.
To substantially increase sales of its now expanded product line, JKP has formed a dedicated sales department of industry professionals, including former sales people for Bizarre Video. Keith Gordon, Vice President of Bizarre Video for over 15 years and a respected industry veteran, will be leading the sales team, as well as managing the company's expanded warehouse operations. JKP recently signed a new lease for a 55,000 foot warehouse and distribution facility in Southern California.
"The synergy between JKP and Bizarre Video should allow our Company to grow significantly," commented Robert Friedland, Chairman & CEO of Jill Kelly Productions. "Our two companies produce and distribute complementary adult entertainment films. With the extra sales fire-power of our new sales team, under Keith's direction, we expect to cross-sell products to existing customers of both companies, to increase their total purchase volume. Further, they will reach out to our ever-increasing number of distributors with our expanded product line."
"Consistent with our goal of maximizing sales while controlling production and distribution costs," adds Mr. Friedland, "we are centralizing the warehousing and distribution for our expanding product lines. Through increased scales of economy, we expect a positive impact this year on both sales and profits."
