Wordsmith Media, Inc. Sells 67% of European Distribution Agreement and Acquires 15% Stake in U.K. Company.

BEVERLY HILLS, Calif., July 26, 2011 /PRNewswire/ -- Wordsmith Media, Inc. (Pink Sheets: WDIS) through its U.K. subsidiary, Pub Media Group, Ltd. has entered into an agreement with PBM Spirits International, Ltd. for the wholesale distribution of products throughout the U.K. and Europe. Wordsmith recently announced its agreement with LeVecke Corporation on June 2, 2011 and to facilitate that agreement, Wordsmith Media, Inc. has sold 67% to PBM Spirits International, Ltd. for 33% of net revenues and a 15% stake in that company.

PBM Director, Paul Bates, detailed the agreement stating, "We are pleased to be the desired partner to import bottled spirits from LeVecke Corporation to the U.K. on behalf of and in partnership with Wordsmith Media, Inc. and its subsidiary, Pub Media Group, Ltd. for distribution and sales across all 27 member states of the European Union (E.U.). With our network and contact partners, we believe our service of importation, distribution and re-exportation of LeVecke Corporation products across Europe and beyond is unparalleled. As further markets are explored and captivated, it is expected to produce a sustainable business and generate substantial income for years to come. Whilst there are many similar products on the open market, the quality of spirit and superb pricing structure should take us to the forefront of wholesale distribution. With an annual consumption in the U.K. alone of circa 30 million cases of spirits per annum, and a forecast of a 4.6% rise over the next few years, (in 2010 the U.K. consumed 8.4 million cases of Vodka) a very conservative net estimate of 1% share of this market equates to 300,000 cases alone. Therefore it would not be unreasonable to assume taking all 27 E.U. member states, a gross sales total of 8.1 million cases of spirit per annum would not be unrealistic once supply chains and wholesale outlets are signed," Bates, concluded.

Wordsmith Media, Inc. through its subsidiary Pub Media Group, Ltd. in London have acquired a 15% holding stake in PBM Spirits International, Ltd. as well as receiving a 33p per pounds Sterling of all spirit sales. In exchange, Wordsmith Media, Inc. and Pub Media Group, Ltd. will handle all promotion and marketing as well as private brand labelling on all products sold, particularly in relation to its key closed circulation distribution product, Pub and Ale Magazine which is scheduled to be re-launched in the U.K. later this year. PBM Spirits International, Ltd., with its management background in the sales and distribution of spirit products in the U.K. and Europe, is taking all the financial risk in the operation. PBM is arranging all shipping and collection of containers to Freeport as well as bond warehousing to and in the U.K. and throughout Europe through their existing facilitation.  

Further, PBM is responsible for all excise duty, VAT, etc. in the U.K. and across Europe. As part of the agreement, PBM will sell and distribute throughout Europe using marketing materials supplied by Pub Media Group, Ltd., a subsidiary of Wordsmith Media, Inc. In addition to the 15% stake that Wordsmith Media, Inc. receives in PBM, a matching 15% stake of Pub Media Group, Ltd. is included to PBM. A key element to the agreement is that there is virtually no financial cash outlay or risk to either Wordsmith Media, Inc. or its subsidiary Pub Media Group, Ltd. In addition, preparations are underway for both entities to be publicly traded on the London Stock Exchange PLUS market with Wordsmith Media, Inc. shareholders receiving stock dividends in each company from Wordsmith's 15% stake in PBM and its subsidiary, Pub Media Group, Ltd.

Eric Jordan, President Wordsmith Media, Inc. stated, "We are excited about this agreement with PBM because no shares of Wordsmith Media, Inc. (WDIS) are included with this agreement for payment or capitalization. The company should begin to see significant revenues by the 4th quarter of this year with this new arrangement and we are confident that PBM is uniquely equipped with the establishment of a bonded warehouse and other key aspects of facilitation to all 27 E.U. member states. In addition, the British Pound and EURO exchange rates are advantageous to the U.S. Dollar($), thus making the profit potential to Wordsmith Media, Inc. ideal. This agreement allows Wordsmith Media, Inc. to concentrate on its core business of publishing and media in addition to its marketing and advertising activities, especially with the relevance to Pub and Ale Magazine," Jordan concluded.  

About Wordsmith Media, Inc:

Wordsmith Media, Inc. is a brand-driven company specializing in non-fiction, historical and cultural media, operating a global content network throughout the U.S. and Europe for marketing and advertising, television broadcasting, DVDs, books, e-books, enhanced e-books and more traditional magazines. Over the past five years, the company has partnered with other key media companies such as The History Channel, A&E Network, National Geographic and Walt Disney Pictures.

Wordsmith Media: www.wordsmithmedia.co

Certain information contained in these materials is "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. All forward-looking information is subject to known and unknown risks and uncertainties, many of which are outside of the control of the Company. Consequently, actual results may, and probably will, differ materially from the results contemplated in such forward-looking information.

Contact:
Investor Relations
Wordsmith Media, Inc.
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SOURCE Wordsmith Media, Inc.