Porn Valley- Jill Kelly Productions Holding, Inc. announced that it has signed an exclusive agreement with Erotic Media, a.g., the largest publicly traded licensor of adult entertainment content in Europe, for a line of high production quality erotic European films. The product line, which will be sold under the "BLU" label, will be suitable for adult entertainment television and the "couples" niche market.

As part of Jill Kelly Productions Holding, Inc.'s strategy of increasing sales by broadening its product offerings and expanding to new markets, Erotic Media will provide fifty-two (52) "European Erotica" feature films per year and gives JKP North American DVD and VHS sales rights.

Additionally, JKP will be allowed, on a case-by-case-basis, to make sales worldwide for both DVDs and media. These films are shot in various European countries, including Italy, France, Sweden, Germany, Denmark, and Spain, and, having been shown on adult entertainment TV in Europe, and are all "broadcast quality." JKP will receive the finished product to distribute on an equal revenue sharing basis. Beginning in November, JKP expects to release a new BLU release weekly, in addition to its Jill Kelly Productions, Bizarre, Gwemedia, and Collateral Damage XXX offerings.

The BLU line will complement the JKP catalog by providing content with new international faces in a classy film product, while maintaining the "hot" action that the market expects from this leader in adult entertainment.

"Erotica Media and JKP see this alliance as a natural fit with our marketing and sales strategy to become a dominant global presence. We believe that this move should significantly contribute to our Company's growth," commented Robert Friedland, Chairman & CEO of Jill Kelly Productions Holding, Inc.

"The BLU line revenue sharing agreement provides us with a line of broadcast quality European adult entertainment films while dramatically controlling costs and risks. We expect that the BLU line will increase our presence on adult entertainment television, and that our strong veteran sales team will be able to cross-sell our constantly expanding product line to existing customers, attract new customers, and increase total sales volume."

Friedland concluded, "We look forward to reporting on future developments that will help Jill Kelly Productions Holding, Inc. reach its goals of growing revenues, greater earnings and increased shareholder value."