Alliance Distributors Holding Inc. Reports Fourth Quarter and Year End Financial Results

NEW YORK, Aug. 22, 2011 /PRNewswire/ -- Alliance Distributors Holding Inc. (Pink Sheets: ADTR), a distributor of interactive video games and gaming products, today announced its financial results for the three-month period and fiscal year ended June 30, 2011.

Net sales for the three months ended June 30, 2011 were $10.4 million, essentially flat with the comparable 2010 period.  Net income for the three months ended June 30, 2011 decreased to $8,000, compared to $62,000 for the comparable period in 2010.

For the fiscal year ended June 30, 2011, net sales decreased 19% to $57 million, compared to $70.5 million for the twelve-month period ended June 30, 2010. Net income decreased to $285,000 for the fiscal year ended June 30, 2011, compared to $740,000 for the twelve-month period ended June 30, 2010.

Jay Gelman, Chairman and Chief Executive Officer, said, "We continue to see a challenging landscape in the video game market. Lower hardware sales and a muted and disappointing release schedule of front line software titles persist in our industry. Our operating results also continue to be impacted by the costs of our Metaversal Studios game development subsidiary."

About Alliance Distributors Holding Inc.

Alliance Distributors Holding Inc. (www.alliancedistributors.com), which does business as Alliance Distributors, is a full-service wholesale videogame distributor, specializing in gaming products and accessories for all key manufacturers and 3rd party publishers. Alliance Distributors offers support on: PS3, PSP, PS2, X-Box 360, Wii, DS and GBA SP, peripherals and software titles. Alliance develops downloadable and social content video games through Metaversal Studios (www.metaversalstudios.com), which it wholly-owns.

Safe Harbor

Certain statements contained in this press release contain forward-looking statements including without limitation, statements concerning our operations, economic performance, and financial condition.  The words "estimate," "believe," "expect," "should" and "anticipate" and other similar expressions generally identify forward-looking statements, which speak only as of their dates.

Investors are cautioned that all forward-looking statements, which are based largely on our current expectations, involve risks and uncertainty. Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including without limitation, risks associated with technological change, competitive factors and general economic conditions, including the related impact on discretionary consumer spending, changes in marketing and distribution strategies by manufacturers, continued shortages of new platform systems, timely development and release of video game products we produce, potential cost overruns in our development of video games, ability to protect our intellectual property rights, potential claims that we have infringed the intellectual property rights of others, market acceptance of games we develop, ability to realize anticipated benefits of acquisitions, potential undiscovered liabilities of companies that we acquire, changes in our business or growth strategy, the emergence of new or growing competitors, various other competitive and technological factors. There can be no assurance that the results referred to in the forward-looking statements contained in this release will occur. The Company has no duty and undertakes no obligation to update any forward-looking information, whether as a result of new information, future developments or otherwise.

SOURCE Alliance Distributors Holding Inc.