Hannover House Sets High Standards for Public Company Operations

NEW YORK, Feb. 21, 2012 /PRNewswire/ -- Hannover House, Inc., the recently rebranded corporate name for Target Development Group, Inc., (Pinksheets: TDGI) has established unusually high standards for its operations as a public company, says company President D. Frederick Shefte.  These policies, when factored in with consistent profitability, reporting transparency and minimal dilution over the past two years, make the company's stock a tremendous value, according to Shefte and company CEO Eric Parkinson.

"We disagree with the manner in which many OTC market companies conduct their operations," said Shefte.  "Most show no hesitancy to dramatically dilute the shareholders through relentless issues of equity, in effect treating the shareholders like an ATM.  In our first two years since taking managerial control of TDGI, the total net increase of shares in issue has been only 1.4%. We feel that our reluctance to issue shares underscores our ongoing commitment to minimize the dilution of our shareholders.  As substantial and majority shareholders of the Company, we are constantly seeking to maximize profits on a per share basis," he continued.

One of the first corporate actions taken in 2010 was a Board of Directors resolution to reduce the total Authorized Shares by 1300%, further supporting the company's shareholder-friendly commitment.  In January 2010, at the time that the management control of Target Development Group, Inc. was assumed by Hannover House executives Eric Parkinson and D. Frederick Shefte, the total of Shares Issued (or reserved) was 471,206,692-million.  In January, 2012, after two years of operations by the Hannover House managers, the total of Shares Issued (or reserved) was 477,995,139, an increase of only 6,788,447 (1.4%).  In January, 2010, the total of authorized shares under the company's corporate structure was 10-billion. Hannover House managers reduced this number to the far more reasonable allotment of 750-million total shares (whether issued or authorized and held in company treasury).

The company is also one of a rare few, if not the only, company that has both a "penalty" program for executives as well as the more customary "bonus" structure.

"If the top managers of companies are to be rewarded for exemplary performance," said CEO Eric Parkinson, "why shouldn't the converse be true?  We stand behind our responsibilities as managers of Hannover House, and have shown our willingness to forfeit shares under penalty if we do not meet specific thresholds.  We believe that good performance by managers should be rewarded, and bad performance should be punished.  We cannot think of a more equitable policy that places the shareholders first."

During the first two years under Hannover House management, the company has also delivered consistent profitability, a multimillion dollar increase in shareholder equity and a substantial decrease in debt.  Ironically, the company's stock price is currently trading at the lowest end of the entertainment industry sector, with value pricing reflecting a Price-Earnings ratio of only 6.4-X compared to an industry average of 21-X.  With the company's new venture into consumer-direct Video-On-Demand streaming this summer (VODwiz.com), management feels that the stock is underpriced by a more significant factor than the 3-X value suggested by the simple Price-Earnings ratio.

"The market has not been responding logically to the value of our company," said Parkinson.  "Shareholders have been combating a campaign of intentionally false information from a small group of day-traders hoping to profit from daily swings in our stock price.  We are taking legal steps to stop such share price manipulation efforts, while at the same time, expanding the company's market presence through enhanced visibility and information clarity."

The Company has completed an application with FINRA for the rebranding of the share ticker symbol from the current "TDGI" to the new "HHSE."  The Company has also taken steps to engage a major market-maker for the stock, in anticipation of the completion of the financial audits for the years ending 2010 and 2011.  In audit-related news, the company has engaged a full-time Audit Control Manager, Lisa Purkayastha, to implement new tracking and reporting systems to speed up future compliance issues.

"Fred and I are committed to the long-term success of Hannover House," said Parkinson.  "We have been responsive to our shareholders, and have implemented policies to protect the shareholders' investment in the company.  We believe that sustainable value will result from these policies as well as from our consistently positive performance results."

Hannover House was established in 1993 as an independent book publishing house.  The company added DVD product lines in 2002, and expanded into theatrical releases in 2008.  The company's current release slate includes new release videos for every month during 2012, along with six theatrical titles already disclosed, and ten new items pending official announcement.  Current videos in release include "Turtle: The Incredible Journey," "All's Faire In Love" and "Boggy Creek: The Legend is True" (all of which are available at Wal-Mart stores and other major retail chains).  Upcoming releases for the company include "Humans Vs. Zombies," "The Weather Station" and "Toys in the Attic" starring Academy Award winner Forest Whitaker, along with Joan Cusack, Vivian Schilling and Cary Elwes.

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SOURCE Target Development Group, Inc.