Dynamic, Unique Motion Picture Entertainment

U.S. THEATRICAL, FOREIGN, TELEVISION & HOME VIDEO DISTRIBUTION

During the course of production, the producers will begin to arrange for foreign and television pre-sales at certain major film markets such as THE AMERICAN FILM MARKET and THE CANNES FILM FESTIVAL. Foreign pre sales may likely recoup the cost of the film before it is ever released domestically. In today's marketplace, there is a multiplicity of revenue sources and worldwide ancillary buyers available for a motion picture that never existed before.

In the United States alone there are revenues from the theatrical release, pay TV, free prime time TV, cable TV, and syndicated TV and Satellite TV. A major source of revenue is from video/DVD sales which may account for as much as 75% of a film's US revenues. It does not include foreign box office revenues which may be 50% - 60% of the total theatrical gross. Virtually every country around the world has all of the same ancillary rights available to generate additional revenues.

Thus, it is realistic to anticipate generating potential profits of 17% - 35% or more on a film, conceivably even before the film is released domestically, provided the film meets certain criteria and adheres to specific business principles. Because the SHIVER film fulfills all of these criteria, the picture can potentially generate highly significant pre sales and domestic box office revenues resulting in handsome profits to the equity participants.

RISK FACTOR: At a budget of under $4 million, in today's market, with the extraordinary number of ancillary rights available, a picture such as SHIVER, if filmed in color, with an experienced director and recognizable cast, has little or no downside risk, in the opinion of the producers. And, the possibility for substantial profit potential is likely, particularly since the picture will be independently financed.

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ESSENTIAL ENTERTAINMENT - JERE HAUSFATER

Cyclone is in discussions with Jere Hausfater at Essential Entertainment, who has expressed interest with respect to  foreign sales and licensing for SHIVER.

Jere Hausfater, through his company, Essential Entertainment would be instrumental in handling both foreign and domestic distribution and licensing deals for the film.  Mr. Hausfater, a native St. Louisan is a graduate of Boston University. Thereafter, he earned a law degree from Southwestern University School of Law.

Mr. Hausfater is the former Executive Vice-President of Miramax Films International and prior to that was the President of Worldwide Distribution and Acquisitions for Intermedia Films. Previously, he was the Sr. Vice-President of Business Affairs and Acquisitions for Disney/Buena Vista.

At Miramax International, Hausfater oversaw international theatrical, home video, and television distribution and sales. Under his watch, Miramax successfully released Cold Mountain, Starsky & Hutch, Scary Movie 3, Kill Bill 1 and 2., among others.

During his tenure, in charge of worldwide distribution and marketing at Intermedia, Hausfater and his team achieved over $250M in worldwide filmsales and oversaw the marketing and distribution of K-19: The Widowmaker, Resident Evil, Adaptation Iris, The Quiet American, T3: Rise of the Machines, and Dark Blue, among other pictures.

At Disney/Buena Vista, Mr. Haufsater was responsible for worldwide theatrical and home video acquisition and sale of motion pictures and children's programming. He also started the in-house theatrical and television sales company, Buena Vista Film Sales ("BVFS"). He was instrumental in acquireng and selling worldwide distribution rights to over 250 films, including: Snake Eyes, Face Off, Il Postino, The Ice Store, Pulp Fiction, Air Force One, The Piano, Die Hard with a Vengeance,  Dances With Wolves, Kundun, The Hurricane, Summer of Sam, 13 Days, Runaway Bride, and Shine.